London-listed Essar Energy Plc on Tuesday said it was on track for completion of expansion projects in the oil and power sector worth $4.9 billion in 2011.
“The $1.8 billion Phase-1 expansion project to increase Vadinar refinery (in Gujarat) capacity from three lakh barrels a day to 3.75 lakh barrels a day remains on track for completion this year,” the company said in a statement.
Ramp-up of new units will commence in the third quarter of 2011, and the majority of the increased production is expected from fourth quarter, which will also significantly increase the complexity of the refinery, allowing it to process much heavier varieties of crude oil and improve margins.
“A further optimisation project to increase capacity to 4.05 lakh barrels a day by September, 2012, is also on track,” it said.
Three other power generation projects with a cumulative capacity of 2,910 MW remain on track for completion in the third and fourth quarters of this year, the company said in the statement.
The commissioning of these projects would almost treble the electricity generation capacity of the company from 1,600 MW to 4,510 MW.
“These are the Salaya-I, Mahan-I (both 1,200 MW) and Vadinar-P2 (510 MW) power plants. Salaya and Vadinar are in Gujarat and Mahan in Madhya Pradesh,” the statement said.
Essar said it is also on track to complete its $350 million acquisition of the Stanlow Refinery in the U.K. from Shell during the second half of 2011.
“An extraordinary general meeting of Essar Energy shareholders will be called soon to approve the transaction, which was agreed with Shell in late March,” it said. — PTI