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Petroleum industry

India's Oil Refining Capacity to Rise by Over 60% by 2016-17

Strategic Insights

— 1 min read

India's oil refining capacity is set to rise significantly over the next few years, driven by the commissioning of new refineries in Orissa and Punjab. According to Oil Minister S Jaipal Reddy, the country's refining capacity will increase from the current 193.386 million tonnes per annum to 310.866 million tonnes by 2016-17. This surge in capacity is expected to meet the growing fuel demand in India, which is projected to rise by 4-5% per annum during the 12th Five-Year Plan period (2012-17).

Key Takeaways:

  • India's oil refining capacity will increase by over 60% to 310.866 million tonnes by 2016-17, driven by the commissioning of new refineries in Orissa and Punjab.
  • The country currently has surplus oil refining capacity, with fuel demand pegged at 141.785 million tonnes in 2010-11.
  • Fuel demand is projected to rise by 4-5% per annum in the 12th Five-Year Plan period (2012-17).
  • Several major refineries are being expanded or commissioned, including:

+ Paradip refinery (15 million tonnes per annum) by Indian Oil Corp (IOC)

+ Bhatinda refinery (9 million tonnes per annum) by Hindustan Petroleum Corp Ltd (HPCL)

+ Bina refinery (9 million tonnes per annum) by Bharat Petroleum Corp (BPCL)

+ Cuddalore refinery (15 million tonnes per annum) by Nagarjuna Oil Corp Ltd

  • Essar Oil is expanding the capacity of its Vadinar unit to 38 million tonnes per annum from 10.50 million tonnes per annum.
  • IOC plans to expand the capacity of its Koyali refinery in Gujarat to 18 million tonnes per annum from 13.70 million tonnes per annum.

Statistics:

  • India's current oil refining capacity: 193.386 million tonnes per annum
  • Projected oil refining capacity by 2016-17: 310.866 million tonnes per annum
  • Fuel demand in 2010-11: 141.785 million tonnes
  • Projected annual growth in fuel demand: 4-5%
  • Capacity expansion of major refineries:

+ Paradip refinery: +7.5 million tonnes per annum (83.33% increase)

+ Bhatinda refinery: +9 million tonnes per annum (100% increase)

+ Bina refinery: +3 million tonnes per annum (50% increase)

+ Cuddalore refinery: +15 million tonnes per annum (100% increase)

+ Vadinar unit: +27.5 million tonnes per annum (265.79% increase)

Sources:

  • PTI (Press Trust of India), November 24, 2011
  • Lok Sabha (Indian Parliament), Written reply to a question by Oil Minister S Jaipal Reddy.

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