Feedstock management (IOCL Sample Clauses

Feedstock management (IOCL. PNCP was conceptualized (2003) to give value addition by producing petrochemicals from the surplus naphtha available from Panipat, Mathura and Koyali refineries of IOCL. The estimated requirement of naphtha (3016 TMTPA) was expected to be obtained from Panipat (1280), Mathura (300) and Koyali (1436) refineries. Naphtha produced from refineries of IOCL is allocated as per the Industrial Logistic Plan of Refinery Headquarters (RHQ). Accordingly, PNCP receives naphtha from four more refineries (Barauni, Bongaigaon, Haldia of IOCL and HPCL Mittal Energy Limited- HMEL) in addition to Panipat, Mathura and Koyali refineries. The plant has been receiving naphtha from Panipat and Mathura Refineries through pipelines as per the estimated availability. Availability of naphtha from Koyali, however, was in the range of 130 to 397 TMT which was less than the estimated availability of 1436 TMTPA. Non availability of estimated quantity of naphtha was made up from other refineries and using different feed mix. Audit noticed that: • During the period 2012-13 to 2014-15, 1683 TMT naphtha was procured from Barauni, Haldia, Bongaigaon, Koyali, Mathura1 and HMEL through railway xxxxx. Out of this 17.90 TMT naphtha valuing ` 85.25 crore was lost in transit. Even in its fifth year of operation the plant is yet to set norms for permissible 1 Some quantity of naphtha from Mathura refinery is transported through rail in addition to quantity transported through pipeline. limit for transit loss of naphtha. In absence of any norms, the extent of controllable loss of naphtha in transit could not be assessed. • In addition to naphtha, PNCP uses ‘hydrogenated C4’ (C4H) as feedstock in NCU. C4 mix is a by-product from production of ethylene. It is a mixture of gaseous hydrocarbons1. C4 mix as such is unsuitable for blending in LPG or for sale. Therefore, C4 mix is first hydrogenated (C4H) and then blended with LPG and/or sold to industrial LPG consumers. In view of better marketability of C4H through blending with LPG, recycling of C4H in NCU was not commercially rewarding as discussed below. NCU produced 10.59 lakh MT (LMT) C4 mix during 2012-13 to 2014-15, out of which
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