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Indian Oil plans to invest $22bn to boost refining capacity

EBR Staff Writer Published 02 April 2018

India’s state-owned oil and gas company Indian Oil (IOC) has announced plans to invest Rs1.43 trillion ($22bn) over the next five years, to nearly double its oil refining capacity.

By 2030, the refiner is planning to boost its annual refining capacity to about 3.2 million barrels per day (bpd).

Indian Oil efineries director B.V. Rama Gopal was quoted by Reuters as saying: “There is a need for us to enhance our capacity to meet the future demand and enhance our capacity ... We have already made our plans for investment of Rs1.06 trillion ($15.5bn).”

In order to meet the increasing fuel demand in the country, the Indian refineries are planning to boost their refining capacity to about 8.8 million bpd by 2030.

Indian Oil, which currently owns and operates 11 refineries in India, has a total capacity of 80.7 million tons per annum.

About Rs166.28bn ($2.5bn) is being invested by the company to upgrade its refineries by 2020.

Upon completion of the investment program, the refineries will have capacity to produce Euro-VI emission norm compliant petrol and diesel. The refiners currently produce Euro-IV fuel.

Gopal added: “We are going to enhance capacity in terms of crude processing and fuel specification.”

Additionally, Indian Oil is investing Rs156bn ($2.39bn) for the expansion of petrochemical projects and a further Rs746m ($11.4m) to boost capacity at its existing refineries.

The firm is due to secure board approval for Rs365bn ($5.6bn) investment to increase capacity of its Guwahati and Bongaigaon refineries in the northeast and Paradip plant in eastern Odisha state.

Indian Oil plans to increase output at its Panipat refinery in Haryana from current 15 million tons per annum (MTPA) to 25 MTPA as well as Koyali refinery from 13.7 MTPA to 18 MTPA, reported Press Trust of India.

The firm is also planning to increase capacity by 3 million tons (MT) at its Barauni refinery in Bihar as well as increase output by 1.2 MTPA at its Mathura refinery in Uttar Pradesh.

According to the US Energy Information Agency, oil demand in India is estimated to reach 434 MT by 2040 from 194 MT currently.

Image: An Indian Oil’s refinery in India. Photo: courtesy of Kendash1987/Wikipedia.