Indian Oil Corporation's (IOC) Gujarat Refinery to Invest Rs 24,000 Crore to Enter Petrochemicals

The Indian Oil Corporation's (IOC) Gujarat Refinery in Vadodara is undergoing a strategic transformation to enter the petrochemicals sector with an investment of Rs 24,000 crore. As part of the plan, the refinery will commission two large petrochemical units by 2025.

Biplob Biswas, executive director and head of Gujarat Refinery, stressed the need to adapt to India's rapidly changing energy sector. "Fuel demand is expected to decline in the next 10 to 15 years. To prepare for the future, we are diversifying into petrochemicals and other areas to ensure IOC's long-term survival."

Currently, the refinery produces linear alkylbenzenes (LABs), used as a base for soaps and detergents, and small amounts of sulphur bentonite. From this year, the refinery will start producing polypropylene and butyl acrylate, both key raw materials for the paints, coatings and plastics industries. Among them, the polypropylene unit has a capacity of 500,000 tons/year, the butyl acrylate unit has a capacity of 150,000 tons/year, and the LAB unit will be upgraded.

Currently, petrochemical products account for less than 5% of Indian Oil Corporation's (IOC) product portfolio. But the company aims to increase this proportion to 15% by 2030. The Gujarat refinery has an annual refining capacity of 13.7 million tons and is an important part of Indian Oil Corporation's total refining capacity of 80.55 million tons/year.