India plans to increase its crude oil refining capacity by 77 per cent to 438.65 million tonnes, or more than 8 million barrels per day (bpd) over the next 12 years as demand grows, a report of the government’s Working Group on Enhancing Refining Capacity has revealed.
India has the capacity to turn 247.6 million tonnes (MT) crude oil into fuel annually. This is slated to rise to 414.35 MT by 2025 and to 438.65 MT by 2030, said the report. The existing refining capacity exceeded the fuel demand of 193.74 MT in 2016-17, but the International Energy Agency (IEA) forecast that this demand will reach 458 MT by 2040.
The report said that the bulk of the capacity boost would come from facilities owned and operated by Reliance Industries, the local heavyweight, and Essar Oil, which Russia’s Rosneft acquired last year.
Reliance will start by increasing the capacity of one of its refineries from the current 33 million tons to 63 million tons annually, while Essar Oil will focus on its 20-million-ton Vadinar facility, upgrading its capacity to 45 million tons.
Indian Oil Corp will also take part in the undertaking, planning to boost the processing capacity of four refineries from 80.7 million tons annually to 116.55 million tons.
A government spokesperson, speaking at an event in Indonesia recently, said that India also has plans to triple its LNG imports over the next seven years to 70 million tons annually. Currently, India has a capacity to import 20 million tons, received at four LNG terminals.
Until 2024, the government will aim to build another 11 facilities as it seeks to increase the share of natural gas in its energy mix twofold to 15 per cent.