The Barauni refinery is situated in the Begusarai district of Bihar

Indian Oil Corporation (IOCL) has awarded a significant engineering, procurement, construction and commissioning (EPCC) contract to Technip Energies to upgrade the Barauni Refinery in India.

The Barauni refinery is situated on a 3.59km² site in the Begusarai district of Bihar, approximately 140km away from Patna.

IOCL is undertaking BR9 Expansion Project with an investment of $1.9bn (£1.4bn) to increase the refinery’s crude processing capacity from six million tonnes per annum (Mtpa) to 9Mtpa.

Under the contract, Technip Energies will install a new once-through hydrocracker unit (OHCU) with capacity of one million metric tonnes per annum (MMTPA), a fuel gas treatment unit and the associated facilities.

Together with downstream refinery units, the OHCU will help produce fuels and petrochemicals while complying with India’s Bharat Stage (BS)-VI quality standards.

Technip Energies India business unit senior vice-president Bhaskar Patel said: “This award demonstrates our long-term commitment in India and substantially consolidates our positioning in High Operating Pressure projects. It also strengthens our position as a leading provider of key projects to the major players in India’s domestic energy sector.”

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The Barauni refinery, which was built in 1964, underwent multiple expansions and upgrades to reach a crude processing capacity of 6Mtpa in 2002.

Upon completion of the latest expansion project in 2023, the refinery will also produce petrochemicals such as polypropylene.

Besides, the project will involve the installation of two new 80 tonnes per day (tpd) sulphur recovery units, a new 304,000tpa isomerisation unit, a new 200,000tpa polypropylene (PP) unit, a new 390,000tpa LPG treatment unit, among others.

According to Technip Energies, the value of a significant contract ranges between €50m and €250m.