IOC Aromatics and Purified Terephthalic Acid, India

Indian Oil Corporation, (IOC), said to be India's largest commercial enterprise by sales, invested $1bn (Rs46bn) to develop an aromatics and purified terephthalic acid (PTA) complex at Panipat, Haryana, India.

The aromatics production comprises 360,000tpa paraxylene (PX), 20,000tpa of benzene as well as 550,000tpa of PTA.

The complex was commissioned in June 2006.

The PX and PTA provide import substitution as well as export potential.

IOC's aromatics and purified terephthalic acid project location

The production facilities were built at IOC's Panipat refinery, situated 100km from Delhi.

Naphtha feedstock is sourced from refineries at Panipat and Mathura.

The aromatics and PTA production plants are part of IOC's plans to continually develop infrastructure at its production sites.

Financing the aromatics and purified terephthalic acid complex

"The complex was commissioned in June 2006."

Development of the complex was financed in part by a loan guarantee from the US Export-Import (Ex-Im) Bank.

A loan of $75m was granted in July 2003 to support the export of technology, equipment and services for the project. ABN AMRO Bank was the arranger and guaranteed lender for the transaction.

Project management

Engineers India Limited was appointed as project management consultants for the aromatics and PTA production plants.

he contract, which was valued at Rs1bn, covered services including front-end engineering and design for the facilities.

Construction of the purified terephthalic acid plant

During the first quarter of 2003, Larson & Toubro (L&T) was awarded the engineering, procurement, construction and commissioning contract by IOC for the 550,000tpa PTA plant.

Mechanical completion was achieved in 2005. Commissioning was delayed up to mid-2006. The PTA plant is made up of two major parts, namely the crude terephthalic acid and the purified terephthalic acid units. Material handling facilities were also built.

Engineering of the PTA plant

Aker Kvaerner UK and Kvaerner Powergas India provided residual basic engineering and the full range of detailed design engineering to L&T for the PTA plant. The entire design engineering package was executed using 3D PDMS.

PTA technology

Dupont's Invista T-10 technology is used on the 550,000tpa production plant.

"Engineers India Limited was appointed project management."

DuPont claims the technology offers a competitive advantage due to the low investment, conversion and energy cost performance.

The technology also results in minimum environmental impact.

DuPont also provided IOC with training services, commissioning support and guidance during project execution.

Paraxylene (PX) plant construction

Toyo Engineering India was appointed as project management consultants for the 360,000tpa paraxylene (PX) plant. This plant includes a Shell Sulfone Unit and Benzene-Toluene Fractionation.

Turbo machinery used at IOC's aromatics and purified terephthalic acid complex

L&T placed an order with Germany's MAN Turbomaschinen to supply the turbo machinery train for the PTA plant. The turbo machinery train consists of an air compressor, expander, steam turbine and generator.

After being designed, manufactured and tested by MAN Turbomaschinen, the machinery was delivered in 2004.

Feedstock supply

A naphtha splitter, located at the Mathura refinery in Uttar Pradesh, was built by Toyo Engineering India. The engineering, procurement construction and commissioning contract was awarded during August 2003.

The splitter has a capacity of 425,000tpa and meets the requirements of the complex at Panipat. Further naphtha feedstock is sourced from the Panipat refinery.