India aims to double refining capacity by 2030
29 June 2020
India is aiming to double its refining capacity to around 450-500 million tonne (MT) in the next 10 years, Union petroleum and steel minister Dharmendra Pradhan said.
The country already has the world’s largest refinery project on the West Coast of India, work on which will start soon, the minister said. The 60-million-tonne, USD 44bn West Coast refinery project was announced in June 2018. Saudi Aramco and Abu Dhabi National Oil Company (Adnoc) hold 50% and Indian oil marketing companies Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) hold the remaining stake in the project. There were concerns about the future of the refinery project owing to land acquisition issues in Maharashtra.
The additional capacity is going to come in the form of a new 9 MT refinery at Barmer in Rajasthan and expansion projects at Koyali in Gujarat, Panipat in Haryana, Paradip in Odisha, Vizag in Andhra Pradesh, Mumbai, Bina in Madhya Pradesh, Numaligarh in Assam and Chennai.
In the oil and gas sector, the minister said that India has seen a tremendous transformation over the last six years on the back of pro-investment policies. “The sector is undergoing tremendous growth, be it in refineries, pipelines, gas terminals, storage capacity, gas cylinders, retail outlets, and all these require a large amount of steel. The oil and gas sector is one of the largest end-users of steel pipes and tubes, with the pipeline being the major mode of transport for petroleum, oil, and lubricant products,” he said.