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Engineers India Limited (EIL), an engineering services company under the Ministry of Petroleum and Natural Gas, Government of India, has so far completed 400 major projects and has a workforce of 2,730 engineers, technologists, and other specialists. The company, set up to provide engineering and other technical services to petroleum refineries, possesses deep understanding of refineries and expertise to build them. It is for such a refinery project that it won the PMI India Best Project of the Year Award 2010.

 

The Bina Refinery project that EIL took up on 1 January 2006, is among the 49 refineries the company has set up so far. PMI honored EIL for excellence in project management that EIL demonstrated in planning and executing the project.

 

Bina Refinery in Madhya Pradesh in central India is designed to have a production capacity of six million metric tons per annum. The refinery is owned and operated by Bharat Oman Refineries Ltd (BORL), a company promoted by Bharat Petroleum Company Limited with equity participation from Oman Oil Company Limited.


Salient features
Besides the refinery, EIL constructed a Single-Point Mooring (SPM), an off-shore facility where crude oil is off-loaded from ships; a Crude Oil Terminal (COT), an on-shore facility in Vadinar in Gujarat where it is stored in eight large tanks; a crude pipeline, a 935-km network of pipes that takes the crude oil from the COT in Vadinar to the refinery in Bina; and a dispatch terminal in Bina where processed products are stored before being transported out.


The project started on 1 January 2006 and the scheduled completion of all mechanical work was slated to be 30 June 2009. The refinery was to be commissioned six months later, on 31 December 2009. There was a six-month delay in the actual commissioning and the refinery was finally handed over to BORL on 29 June 2010.


The project had an estimated cost of Rs. 10,378 crore. The final cost at completion was Rs. 11,400 crore. The main reason for the cost overrun was the market escalation from 2006 to 2009. The company placed a large number of orders during 2006-2008 when the markets were booming and costs were high. The six-month time overrun also cost BORL high interests.

 

Imposing scale, technology
A major part of the construction work was site grading, which meant cutting and filling of earth to the tune of 14,89,000 cubic meter (CuM). The other major works involved preparing and laying cement, and concrete laying of 3,60,000 CuM, structural steel of 71,250 metric ton, piping for 2,400 km, electrical cable of 2,770 km and instrumentation cable of 1,700 km.

 

Bina Refinery was to be the first petcoke-based captive co-generation power plant in India. In other words, the refinery would run on a power plant that would be fed with petcoke, an output of the refinery. It would also be the first refinery in India to have an integrated hydrocracker plant producing liquid petroleum gas, fuel gas, naphtha, etc., and a diesel hydro treater unit that produces Euro 3 and Euro 4 diesel.

 

The refinery is located at a landlocked site and is designed to have zero liquid discharge. It boasts of a state-of-the-art waste water treatment system. The plant is also designed to produce low total dissolved solids as an effl uent; whatever is generated is used for horticulture or is solar dried.

 

Bina Refinery uses state-of-the-art field bus technology, which is a signal transfer methodology whereby a large amount of data in digital mode can be transmitted bi-directionally on one physical link. It helps execute control algorithm in field devices, reduce field cabling/wiring, provides better information for engineering, operation and maintenance, and allows inter-operable instrumentation.

 

Project management challenges and resolution
The main stakeholders of the project, BORL and EIL, had pledged that they would complete the project with no time- or cost-overrun. Though they could not keep to this mission statement, it helped align all the stakeholders to the common ideas and objectives.

 

 
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