MANUFACTURED CAPITAL

02 Petrochemicals

As the second biggest player in India’s petrochemicals market, IndianOil is working towards siezing the high growth opportunities that this market presents. Our full range of petrochemical products under the brand ‘PROPEL’, serve everyday needs of our customers.

Highlights for the year

• Poly Propylene Random Copolymer, high melt reactor grade 2300 MC, was launched on PROPEL for usage in household bottles and containers.
• Initiated export of Polymer to Sri Lanka and Turkey
• 22 OEM approvals received including Tata Steel, Amara Raja Batteries and Reckitt Benckiser.

Road ahead

Going forward, we have planned to invest ₹ 35,000 crore towards projects that will utilise product streams from our existing refineries, thereby achieving better exploitation of the hydrocarbon value chain. PX-PTA and Ethylene Glycol projects at Paradip and Oxo Alcohol project at Gujarat are three major petrochemical projects under execution. Ethylene Glycol project is scheduled for commissioning in 2022-23.

Strategic advantages

• Adoption of best-in-class technologies
• Robust supply chain and distribution network
• Best-in-class quality standards
• Strong brand name and recall
• Robust R&D capabilities

03 Pipelines

Managing one of the world’s largest petroleum pipeline networks, IndianOil ensures safe, cost-effective, energy-efficient and environment-friendly transportation of crude oil and petroleum products.

Highlights for the year

• Crude oil pipelines achieved throughput of 48.53 MMT which is around 10% higher than last year.
• Product pipelines achieved throughput of 34.72 MMT, which is around 9% higher than that of last year.
• Gas pipelines achieved highest ever throughput of 2,985 MMSCM, which is around 11% higher than that of last year.
• Launch of indigenously developed Drag Reducing Additive (DRA) - ‘XTRAFLO’, for usage in pipelines.
• Investment approval for projects worth ₹ 17,703 crore - New Mundra Panipat Crude Oil pipeline, pipelines connecting Kamarajar Port, Vallur Terminal and CPCL at Chennai and CGD projects in 9 geographical areas (GAs).
• Tenders for optical fibre-based Pipeline Intrusion Detection and Warning System (PIDWS) were floated in January and March, 2022. This system would help detect, alert and prevent any third-party intrusion in the mainline ROW of underground petroleum pipelines. These are by far the largest tender for PIDWS ever floated in India.

Road ahead

We are implementing three major projects including new grassroot refinery at Nagapattinam (Tamil Nadu), capacity augmentation of Koyali Refinery (Gujarat) from 13.7 MMTPA to 18 MMTPA (J-18), Barauni Refinery (Bihar) from 6 MMTPA to 9 MMTPA (BR-9) capacity augmentation of Panipat Refinery (Haryana) from 15 MMTPA to 25 MMTPA (P-25). These three projects would guide the other project activities that will be implemented in the Pipelines Division in near future, to cater to the rise in requirement of crude oil and for evacuation of petroleum products arising out of implementation of these major projects to demand centres.

Strategic advantages

• Our infrastructure ensures most reliable and safest mode of transportation of high volumes of petroleum products over long distances compared to other modes such as rail, road and tankers.
• Ensures uninterrupted supply of petroleum products in all weather conditions
• Energy efficient mode of transportation with negligible transit losses
• Minimal impact on environment due to lesser carbon emission

04 Natural Gas

IndianOil is the second biggest player in the RLNG market in India and is strenghtening its position across the natural gas value chain by scaling up LNG sourcing, strengthening import terminals, pipelines and city gas distribution networks and providing ‘LNG at the doorstep’ service to customers.

Highlights for the year

• Successful development and launch of Mobile app — ‘INDIANOIL PNG’ — for PNG customers on Google play and Apple iOS store.
• CNG sales registered a sustained growth over previous year and is in the range of 26,000 Kg/day (35,000 SCMD).
• Purchased domestic natural gas for the first time by bidding in an e-auction conducted by the Consortium of Reliance Industries Limited and BP Exploration (Alpha) Ltd. for sale from the KG D6 Gas fields.
• Procured 30 LNG cargoes equivalent to 1.94 MMT.
• Commissioned Dahej-Koyali natural gas pipeline in March, 2022 which is the first dedicated pipeline of IndianOil.
• Acquired 4.93% of equity in the Indian Gas Exchange Limited and also became its Proprietary member.

Road ahead

For the next year, Gas-in at CGS / LNG hub for five geographical areas namely Morena, Bhagalpur, Deoghar, hub of Salem and hub of Visakhapatnam is proposed. Further, 120 CNG stations are expected to be mechanically completed by March 2023.

Over the next five years, IndianOil envisages growth up to 18-20 MMTPA by connecting the north-eastern refineries through Northeast Gas Grid, expansion at Ennore and development of CGD infrastructure at geographical areas, thus striving to capture nearly 40% market share in the RLNG segment.

Strategic advantages

• Robust infrastructure
• Capability to steadily step-up investments and expand its operations
• Long-standing relationships with value chain partners

05 Exploration and Production

IndianOil has been undertaking exploration and production activities both within and outside the country in collaboration with consortium partners to enhance our upstream integration.

Highlights for the year

• Registered 9.8% YoY growth in production, which stood at 4.26 MMtoe
• In our first overseas operatorship asset, Block-1, Abu Dhabi, appraisal well testing established an encouraging hydrocarbon flow of close to 4 thousand barrels per day
• We are holding Participating Interest (PI) ranging from 20% up to 100% in 9 domestic and eleven overseas oil & gas assets in partnership with various domestic and international companies.

Road ahead

We are constantly eyeing for opportunities to further strengthen our market standing in the segment. We plan to expand our upstream footprint to ~10% upstream integration with the production share of 11 MMTPA by 2030.

Strategic advantages

• Strong financials
• Presence across the value chain
• Strong relationships with domestic and international partners

06 Marketing

IndianOil addresses the energy needs of millions of people daily through its vast network of fuel stations, bulk storage terminals, inland depots, aviation fuel stations, LPG bottling plants and lube blending plants. For decades, the Company is living up to the commitment of uninterrupted supply of petroleum products to every part of the country.

Highlights for the year

• We maintained our market leadership position with a total 40.8% market share in India.
• To expand our customer base, we launched Fuel@Call — a platform through which customers can get diesel delivered at their doorsteps.
• We have solarised 1,166 outlets, as a part of our endeavour to increase the consumption of green energy in our retail network.
• All segments of LPG including Domestic, NDNE, Bulk and Auto registered positive growth during 2021-22.
• We, along with Total Energies, France, have started the production and distribution of value-added bituminous products from our Institutional Business facilities in Jodhpur, Chennai and Kolkata.
• We commissioned grassroot POL Depot at Guntakal (Andhra Pradesh) and Railhead Depot at Cachar Valley, Moinarbond and Silchar (Assam).
• Mechanical completion achieved in brownfield projects for POL terminal at Ratlam (Madhya Pradesh), Manmad (Maharashtra) and Ahmednagar (Maharashtra) and grassroot projects at Motihari (Bihar) and Asanur (Tamil Nadu).
• Mechanical completion achieved for LPG Import Terminal at Paradip (Odisha), additional tankage at LPG Bottling Plant Bikaner (Rajasthan) and Lucknow (Uttar Pradesh).
• Commissioning of Greenfield Bottling plant at Agartala (Tripura), Korba (Chhattisgarh), Jabalpur (Madhya Pradesh) and Gwalior (Madhya Pradesh) and additional tankage at Raninagar (West Bengal).

Road ahead

With a strong push towards E-vehicle and adoption of cleaner fuels, we are continuously investing towards building EV charging stations across the country. Moreover, to ensure the uninterrupted supply of products, we are focusing on increasing our distribution network as well as expanding our client base. We are also harnessing the power of new and innovative technologies to automate our processes to improve our overall efficiency and reduce cost. In our non-fuel business, the focus will be on expanding the range of products offered to customers to include FMCG and home care products and services also. We are also planning to develop bio-fuel facilities in line with functional requirements.

Strategic advantages

• Strong brand value and recall
• Integrated player with presence across the value chain
• Superior customer support and service
• Automated procedure to enhance quality and quantity
• Optimised operations and logistics smart terminals