Determined to benefit from fast-growing fuel demand in the country, IOC intends to nearly double its refining capacity to 150 mt by 2030, says the company’s top boss.
The oil PSU already has 80.7 million tonne of refining capacity in place. “In line with India’s aspirations to become a refining hub, IOC plans to raise its refining capacity from the current 80.7 million tonnes per annum (mtpa) to around 150 mtpa by 2030, through both brownfield expansions and greenfield capacity creation,” company chairman Sanjeev Singh has said in company’s latest annual report.
These include a 60 mt integrated refinery-cum- petrochemical project on the west coast IOC is implementing with BPCL and HPCL at a cost of Rs 2.7 lakh crore, he added.
IOC has 50 per cent stake in the project.
The International Energy Agency (IEA) has projected 4 per cent CAGR (compounded annual growth rate) in India’s fuel demand to 348 mt by 2030, from 194 mt in 2016-17. Meanwhile, BP and US Energy Information Administration have forecast demand to be 335 mt and 294 mt in 2030.
India has a refining capacity of 232.06 mt.
“As part of its quest to become an integrated energy major, IOC is expanding its upstream portfolio of domestic and overseas oil and gas blocks to be able to source at least 10 per cent of its crude oil requirements from its own assets in the medium term,” Singh said.
IOC has stake in eight domestic and nine overseas oil and gas blocks in Libya, Gabon, Nigeria, Yemen, Venezuela, Russia, Canada and the US.
It has fuel retailing and terminal operations in Sri Lanka and Mauritius and is looking to enter other emerging markets in South-East Asia and Africa. It has overseas offices coming up in Singapore, Myanmar and Bangladesh.
The brownfield expansions include Rs 15,034 crore plan to raise capacity of Koyali refinery in Gujarat to 18 mt, from the current 13.7 mt. Capacity of the Panipat refinery in Haryana will be raised by a quarter to 20.2 mt, from the current 15 mt.
A 3-mt capacity addition each is planned in UP’s Mathura and Bihar’s Barauni refineries, which will take their capacity to 11 mt and 9 mt, respectively. The recently-commissioned 15 mt Paradip refinery in Odisha will see a capacity addition of 5 mt while about 3 mt will be added in IOC’s Digboi and Bongaigaon refineries in the North-East.
Singh said IOC plans to commission its 5 mt a year LNG import terminal at Ennore in Tamil Nadu in early 2018.