IOC to Invest Rs. 1.4 Lakh Crores to Double Refining Capacity

IOC is planning to invest about Rs. 1.43 lakh crores to nearly double its oil refining capacity to 150 million tonnes and boost petrochemical production by 2030.

While IOC is expanding refining capacity to meet fuel demand, which is expected to nearly double by 2040, it does not want to remain “a refining company alone and is thus venturing into petrochemicals and alternative fuels as well,” the company’s Director (Refineries) Mr. B. V. Rama Gopal informed.

The company currently owns and operates 11 out of the country’s 23 refineries. Its refineries have a total capacity of 80.7 million tonnes per annum.

Investment breakup

IOC is investing Rs. 16,628-crore in upgrading its refineries to produce Euro-VI emission norm compliant petrol and diesel as against Euro-IV fuel being produced now. This investment cycle would be completed by 2020, said Mr. Rama Gopal. The company is also investing Rs. 15,600-crore in expansion of petrochemical projects and another Rs. 74,600-crore in raising the capacity of its existing refineries. He said another Rs. 36,500-crore worth of projects are in pipeline but haven’t been approved by the company board as yet. These include expansion of its recently-commissioned 15-mtpa Paradip refinery in Odisha to 18-mtpa as also the expansion of Bongaigaon unit.

IOC plans to raise the capacity of its Panipat refinery in Haryana to 25-mtpa from current 15-mtpa, while Koyali refinery in Gujarat would be expanded to 18-mtpa from 13.7-mtpa. While 3-mtpa will be added in IOC’s Barauni refinery in Bihar, a 1.2-mtpa capacity addition is planned for Uttar Pradesh’s Mathura refinery to take its capacity to 9.2-mtpa.

IOC is also looking at adding 9-mtpa capacity to its subsidiary Chennai Petroleum Corporation Ltd. (CPCL).Mr. Rama Gopal said IOC, BPCL, and HPCL are together setting up the new 60-mpta refinery on the west coast in Maharashtra.

Talking of growth drivers, he said IOC is setting up a new unit at its Panipat refinery to manufacture ethanol from refinery off-gases. Ethanol so produced will be used for blending in petrol.