News Release Details
India's refining capacity to go up 45% by 2012: Report
New Delhi 14-Aug-2007
India is likely to boos t its refining capacity by 45% or 65.3 mtpa million tonne per annum) over the next five years. The country would be a net exporter of petroleum products due to aggressive expansion plans by most of the refiners, reveal a recent Deutsche Bank report. India, in 2004-2005, met 75% of its crude oil demand through imports. India has a total refining capacity of 146-mtpa at present. Essar Oil has recently commissioned a 10.5-mtpa plant at Vadinar, which is, at present, running at 7.5mt-pa capacity; the company expects to increase capacity to 14 mtpa by March '08 and to 32 mtpa later on. Reliance Petroleum (RPL) is planning to commission its 27mtpaJamnagar refinery by December'08. Industry analysts feel that once all die refineries complete their expansion, the total refining capacity of the country would become 212.3 mtpa. This would mean that petroleum product sales at the end of financial year 2006-07 would be 126.08 mmt. Along with the existing capacity, in future, if companies like Essar draw plans of refinery expansion up to 32 mtpa, MRPL refinery 15 mtpa and HPCL Visakh refinery 5 mtpa capacities, India's refining capacity and excess supply could further increase to 255 rntpabyFY12, the feportadds. "In the recent past, India offers attractive opportunities to construct new refineries or expand the capacity of its existing refineries. In the current world refinery scenario, margins are very attractive and are likely to remain so for at least a few more years. In this background, properly designed refineries like Reliance's Jamnagar plant with the ability to process heavy and sour crude to maximize middle distillate products to meet Indian needs will get above good returns, said a Mumbai based oil & gas analyst. India has been discussing various strategies to improve energy security in the recent years. The policy finally adapted by the government will have an impact on the refinery sector too. Unlike Europe and Japan where refiners are also expected to have minimum amount of crude oil or products stored to meet mandatory inventory requirement, Indian refineries do not have any such need today. In the future if this is changed, it will add to die capital needs of the investors.
New Delhi 14-Aug-2007
India is likely to boos t its refining capacity by 45% or 65.3 mtpa million tonne per annum) over the next five years. The country would be a net exporter of petroleum products due to aggressive expansion plans by most of the refiners, reveal a recent Deutsche Bank report. India, in 2004-2005, met 75% of its crude oil demand through imports. India has a total refining capacity of 146-mtpa at present. Essar Oil has recently commissioned a 10.5-mtpa plant at Vadinar, which is, at present, running at 7.5mt-pa capacity; the company expects to increase capacity to 14 mtpa by March '08 and to 32 mtpa later on. Reliance Petroleum (RPL) is planning to commission its 27mtpaJamnagar refinery by December'08. Industry analysts feel that once all die refineries complete their expansion, the total refining capacity of the country would become 212.3 mtpa. This would mean that petroleum product sales at the end of financial year 2006-07 would be 126.08 mmt. Along with the existing capacity, in future, if companies like Essar draw plans of refinery expansion up to 32 mtpa, MRPL refinery 15 mtpa and HPCL Visakh refinery 5 mtpa capacities, India's refining capacity and excess supply could further increase to 255 rntpabyFY12, the feportadds. "In the recent past, India offers attractive opportunities to construct new refineries or expand the capacity of its existing refineries. In the current world refinery scenario, margins are very attractive and are likely to remain so for at least a few more years. In this background, properly designed refineries like Reliance's Jamnagar plant with the ability to process heavy and sour crude to maximize middle distillate products to meet Indian needs will get above good returns, said a Mumbai based oil & gas analyst. India has been discussing various strategies to improve energy security in the recent years. The policy finally adapted by the government will have an impact on the refinery sector too. Unlike Europe and Japan where refiners are also expected to have minimum amount of crude oil or products stored to meet mandatory inventory requirement, Indian refineries do not have any such need today. In the future if this is changed, it will add to die capital needs of the investors.