Essar Energy [LSE: ESSR] has today announced that it will defer its 35 day planned shut down at the Vadinar refinery in Gujarat, originally planned for May and June 2011.
This decision has been made following requests from Essar Energy’s major public sector customers, Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd and Indian Oil Corporation Ltd to continue production due to tightness in Asian markets for petroleum products, particularly gasoil, following recent events in the Middle East and Japan.
The planned shutdown will be deferred until September and October 2011, after the monsoon season, but will not impact the schedule for the commissioning of the Vadinar phase I refinery expansion. Ramp up of the new units will commence in Q3 2011 with the majority of the increased production expected from mid Q4 2011.
The planned 35 day shutdown is being undertaken to integrate and synchronize the existing refinery with the new units associated with the Vadinar phase I refinery expansion. This expansion will increase capacity to 375,000 barrels per stream day from around 300,000 currently and more importantly, increase complexity from 6.1 to 11.8. This will allow the refinery to process a greater proportion of ultra heavy and heavy crude oils, and to produce high grade Euro V fuels which can be sold into international markets. During the shutdown, Essar Energy will also carry out its routine maintenance schedule at the refinery.
Mr Naresh Nayyar, Chief Executive of Essar Energy said: “Events in the Middle East and Japan have impacted the availability of petroleum products in the Asia region, particularly middle distillates such as gasoil. We are working with our customers to ensure the continued availability of petroleum products during this period of tightness. This will not impact the timing of our Phase I refinery expansion”.
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Mark Lidiard, Director of Investor Relations & Communications +44 20 7408 8714 or +44 7554 440421
Andrew Turpin, Head of Media Relations +44 20 7408 8702 or +44 7827 283659
Richard Campbell +44 20 7307 5334 or +44 7775 784 933
Nicholas Bastin +44 20 7255 5117 or +44 7931 500 066 About Essar Energy
Essar Energy (LSE:ESSR) is a world class, low-cost, integrated energy company with an established track record.
Essar Energy, through its subsidiaries, owns one of India's largest private power producers with 1,600MW of installed capacity and projects under planning and construction to expand its capacity to 11,470 MW by the end of 2014.
Essar Energy, through its subsidiaries, owns one of India's fastest growing private sector oil and gas companies with a diverse portfolio of exploration and production assets. The Vadinar refinery, located in Gujarat, is India's second largest private sector oil refinery with throughput capacity of 14mmtpa and plans to expand to 20mmtpa by September 2012.About Essar Group
The Essar Group (the "Group") is a multinational conglomerate and a leading player in the sectors of Steel, Oil & Gas, Power, Communications, Shipping Ports & Logistics, Construction and Minerals. With operations in more than 20 countries across five continents, the Group employs 70,000 people, with revenues of USD 15 billion in 2009.
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