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| 08 February, 2018

India plans to raise refining capacity by 77% by 2030- govt report

India's refining expansion plan will ensure the nation's surplus production of diesel and gasoline will last till 2035.

An oil refinery of Essar Oil, which runs India's second biggest private sector refinery, is pictured in Vadinar in the western state of Gujarat, India, October 4, 2016.  Image used for illustrative purpose.

An oil refinery of Essar Oil, which runs India's second biggest private sector refinery, is pictured in Vadinar in the western state of Gujarat, India, October 4, 2016. Image used for illustrative purpose.

REUTERS/Amit Dave/File Photo
NEW DELHI- Refiners in India, the world's third-biggest oil consumer and importer, have drawn up plans to raise their capacity by 77 percent to about 8.8 million barrels per day (bpd) by 2030 to meet the country's rising fuel demand.

India's refining expansion plan will ensure the nation's surplus production of diesel and gasoline will last till 2035, according to a report prepared and released by the Ministry of Petroleum and Natural Gas.

India is emerging as one of the key global drivers for refined fuels consumption as its economic expansion and rising industrial activity yields infrastructure improvements and increased energy access for commercial and retail consumers.

If current patterns of use continue, India's fuel demand could rise to as much as 335 million tonnes by 2030, and 472 million tonnes by 2040, from about 194 million tonnes last year, the oil ministry's report says.

On the basis of expansion plans submitted by refiners to the government, gasoline production will remain in surplus up to 2035, turning into a deficit in 2040, according to the report.

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A spokesman for the oil ministry declined to discuss the report further when contacted by phone.

Diesel will remain in surplus until about 2035, beyond which domestic demand will overtake supply, the report said.

The report also forecast a growth of 5 percent or more each year in India's gasoline, diesel and jet fuel demand to 2030.

The report recommended the refiners set up petrochemical projects and cut production of petcoke and fuel oil.

TABLE: Refinery Expansion Plan of Indian Refiners

COMPANY/REFINERIES EXISTING DESIGN CAP CITY IN MLN T/YR

CAPACITY A-Refineries operated 2020 2025 2030 by state companies

Indian Oil Corp Guwahati 1.0 1.2 1.7 1.7 Barauni 6.0 6.0 9.0 9.0 Gujarat 13.7 13.7 18.0 18.0 Haldia 7.5 8.0 8.0 8.0 Mathura 8.0 8.0 9.2 9.2 Digboi 0.7 0.7 0.7 0.7 Panipat 15.0 15.0 25.0 25.0 Bongaigaon 2.4 2.7 2.7 4.5 Paradip 15.0 15.0 21.0 21.0 CPCL- Manali 10.5 10.5 10.5 10.5 CPCL- CBR 1.0 1.0 9.0 9.0 TOTAL IOC 80.7 81.8 114.8 116.6

Hindustan Petroleum Mumbai 7.5 9.5 9.5 9.5 Visakh 8.3 15.0 15.0 15.0 HMEL-Bathinda 11.3 11.3 11.3 11.3 Rajasthan -- -- 9.0 9.0 MRPL 15.0 15.0 18.0 18.0 ONGC-Tatipaka 0.1 0.1 0.1 0.1 TOTAL 42.2 50.9 62.9 62.9

Bharat Petroleum Corp Mumbai 12.0 12.0 12.0 12.0 Kochi 15.5 15.5 20.0 20.0 Bina 6.0 7.8 15.0 15.0 Numaligarh 3.0 3.0 9.0 9.0 TOTAL BPCL 36.5 38.3 56.0 56.0 TOTAL A 159.4 171.0 233.7 235.5

B-Others ESSAR 20.0 20.0 45.0 45.0 RIL- DTA 33.0 33.0 40.5 63.0 RIL-SEZ 35.2 35.2 35.2 35.2 WEST COAST -- -- 60.0 60.0 TOTAL B 88.2 88.2 180.7 203.2

TOTAL All (A+B) 247.6 259.2 414.4 438.7 IOC: Indian Oil Corp BPCL: Bharat Petroleum Corp Ltd HPCL: Hindustan Petroleum Corp Ltd CPCL: Chennai Petroleum Corp Ltd MRPL: Mangalore Refinery and Petrochemicals Ltd RIL: Reliance Industries Ltd (Reporting by Nidhi Verma and Aditya Kalra Editing by Tom Hogue) ((nidhi.verma@thomsonreuters.com; +91 11 49548031; Reuters Messaging: nidhi.verma.thomsonreuters.com@reuters.net))