Essar to build new oil refinery, raise capacity to 680,000 bpd

Essar plans to build a 360,000 bpd refinery next to its existing plant at Vadinar in Gujarat by December 2009, at a cost of $1.2 billion, group adviser AN Sinha said.

The Ruia-controlled Essar is the second largest private refiner in the country after Reliance Industries, which operates a 660,000 bpd refinery at Jamnagar, in Gujarat.

Reliance is also building a 580,000 bpd refinery at the site.

Sinha said that by the third week of November, all new units will be synchronised with existing units to attain full capacity and Essar Oil will start operating at a full capacity of 210,000 bpd from the third week of December.

Over 70 per cent of Essar's production is exported, he added.