Indian Oil
to invest Rs 1.75 trillion for expansion
NEW DELHI, INDIA:
Indian Oil Corp Ltd, the country’s largest
oil firm, plans to invest Rs 1.75 trillion to nearly double its refinery
capacity, boost petrochemical production, expand gas business and lay new
pipelines to become a vertically integrated company, its chairman Sanjiv Singh
said.
Indian Oil plans to increase its refining
capacity to 150 million tonnes per annum by 2030 from 80.7 million tonnes now.
It currently owns and operates 11 out of the 23 oil refineries in the country.
“As the leading refiner in the country and a
dominant player across a diverse portfolio of offerings in energy, Indian Oil
is focussing on all emerging opportunities for organic and inorganic growth
through vertical integration and strategic diversification, besides pursuing
value-creating research areas,” Singh said in the company’s latest annual
report.
Projects worth Rs 32,000 crore are in various
stages of execution and plans are underway to implement more projects costing
about Rs 1.43 trillion, he said.
According to Singh, plans to nearly double
refining capacity by 2030 include “greenfield refineries of subsidiary Chennai
Petroleum Corp Ltd (CPCL) and the proposed Ratnagiri Refinery and
Petrochemicals Ltd (RRPCL), apart from numerous brownfield expansions”.
Once completed, the Ratnagiri refinery would
be the world’s largest integrated greenfield refinery-cum-petrochemicals
complex with a capacity of 60 million tonnes per annum. The project is being
executed in partnership with state-owned Bharat Petroleum Corp Ltd (BPCL) and
Hindustan Petroleum CorpL td (HPCL) along with Saudi Aramco and ADNOC of UAE.
“Several pipeline projects with a combined
capital expenditure of over Rs 20,000 crore are under implementation. Upon
completion, Indian Oil’s pipeline network would expand to about 20,000 km,”
Singh said, adding that a 69-km pipeline is also being laid to transport
petroleum products to Nepal.
Indian Oil’s current investment cycle
includes Rs 16,628 crore in upgrading refineries to produce Euro-VI emission
norms compliant petrol and diesel by 2020 as against Euro-IV fuel being
produced now. The company is investing Rs 15,600 crore in expansion of
petrochemical projects and another Rs 74,600 crore in raising the capacity of
its existing refineries.
Another Rs 36,500 crore worth of projects are
in pipeline but have not been approved by Indian Oil’s board yet. These include
expansion of its newest refinery at Paradip in Odisha to 18 million tonnes from
current 15 million tonnes, as also the expansion of Bongaigaon unit.
Expansions are planned at the firm’s Panipat
refinery in Haryana, Koyali refinery in Gujarat, Barauni refinery in Bihar and
Mathura refinery in Uttar Pradesh. Indian Oil is also looking at adding 9
million tonnes capacity to its subsidiary CPCL.
On diversification, Singh said Indian Oil has
decided to infuse equity in Paradip Plastic Park Ltd, a joint venture with
Industrial Development Corporation of Odisha to promote downstream
plastics-based units near the Paradip refinery. The company has plans for
setting up a Textiles Park in Odisha based on the feedstocks available from
Paradip refinery.
“Looking at the future, the company is
strongly focussed on offering a bouquet of ecofriendly energy options other
than liquid fuels to its customers. These would include natural gas, LNG, CNG,
PNG, autogas, biogas, hydrogen and electricity,” said the Indian Oil chairman.
According to Singh, Indian Oil’s 5 million
tonnes a year LNG import terminal at Kamarajar Port in Ennore, Tamil Nadu,
would be commissioned by the end of the current year. Indian Oil is also
booking capacities in other LNG terminals, both on the east and west coasts of
India.
“Indian Oil is developing three natural gas
pipelines—Mallavaram-Bhopal-Bhilwara-Vijaipur, Mehsana-Bhatinda & Bhatinda-Jammu,”
Singh said, adding it is also partnering in the development of a 1,500-km
natural gas pipeline grid to connect Guwahati to other major cities of all
north-eastern states. Indian Oil retails CNG to vehicles and piped cooking gas
to households in nine cities and is “aggressively taking part in the various
bidding rounds for gas,” Singh added.
© PTI
https://www.worldofchemicals.com/media/indian-oil-to-invest-rs-175-trillion-for-expansion-chairman-sanjiv-singh/12999.html
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