IOC lines up Rs 40,000 cr to take re­fin­ing ca­pac­ity be­yond 100 mt

Resource Digest - - CONTENTS -

In­dian Oil Cor­po­ra­tion (IOC) will in­vest Rs 40,000 crore to ex­pand its re­fin­ing ca­pac­ity to over 100 mil­lion tonnes by 2022 as the na­tion's largest oil firm takes the lead to add ca­pac­ity to meet In­dia's ris­ing en­ergy needs.

“As we see, (fuel) de­mand is ex­pected to grow at 3.5-4 per cent CAGR and we need to build ca­pac­i­ties to meet that re­quire­ment,” IOC Di­rec­tor (Re­finer­ies) San­jiv Singh said.

In­ter­na­tional En­ergy Agency's World En­ergy Out­look projects 4 per cent CAGR growth in In­dia's fuel de­mand to 348 mt by 2030, from 184 mt in 2015-16.

BP projects de­mand to be 335 mt while EIA has pegged it at 294 mt, which trans­lates into a CAGR of 3 per cent. In­dia has a re­fin­ing ca­pac­ity of 232.06 mt. “All the pro­jec­tions clearly show that the de­mand will grow and un­less we start in­vest­ing now, we will lag,” he said.

IOC will ex­pand its re­fin­ing ca­pac­ity to 104.55 mt by 2022 from the cur­rent 80.7 mt per an­num with an in­vest­ment of about Rs 40,000 crore, he said.

It is look­ing to scale up its Koy­ali re­fin­ery in Gu­jarat to 8 mt from 13.7 mt while ca­pac­ity of the Pa­ni­pat re­fin­ery in Haryana will be raised by a quar­ter to 20.2 mt from the cur­rent 15 mt.

A 3-mtpa ca­pac­ity ad­di­tion each is planned for Ut­tar Pradesh's Mathura and Bi­har's Ba­rauni re­finer­ies, which will take their ca­pac­ity to 11 mt and 9 mt, re­spec­tively. The re­cent­ly­commis­sioned 15-mtpa 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, he said.

Other state re­fin­ers too have planned ca­pac­ity ad­di­tion to meet ris­ing de­mand. Bharat Petroleum Corp (BPCL) is look­ing to ramp up ca­pac­ity to 53 mt, from 30.5 mt cur­rently, by adding 1.6 mt to its Mum­bai re­fin­ery and an­other 6 mt to the Kochi unit.

There is a plan to ramp up ca­pac­ity of Bina re­fin­ery in Mad­hya Pradesh by 9 mt, to 15 mt, while Nu­ma­li­garh’s will go up to 9 mt, from 3 mt.

Hin­dus­tan Petroleum Corp Ltd (HPCL) also plans to ex­pand its Mum­bai re­fin­ery to 8.2 mt from 6.5 mt and that of Vizag unit to 15 mt from 8.3 mt.

While its Bhatinda re­fin­ery’s ca­pac­ity will go up to 11.2 mt from 9 mt, it has plans to set up a 15-mt unit in Vizag in Andhra Pradesh and an­other 9-mt re­fin­ery at Barmer in Ra­jasthan.

As for the Man­ga­lore re­fin­ery, it is chalk­ing up plans to in­crease ca­pac­ity to up to 21 mt, from the cur­rent 15 mt.

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