India plans to increase its crude oil refining capacity by 77 percent to 438.65 million tons, or more than 8 million bpd, a government report has revealed. The increase would happen gradually over the next 12 years as Asia’s new powerhouse seeks to satisfy its growing demand for fuel.
The report said that the bulk of the capacity boost will come from facilities owned and operated by Reliance Industries, the local heavyweight, and Essar Oil, which Russia’s Rosneft acquired last year.
Reliance will start by increasing the capacity of one of its refineries from the current 33 million tons to 63 million tons annually, while Essar Oil will focus on its 20-million-ton Vadinar facility, upgrading its capacity to 45 million tons.
Indian Oil Corp will also take part in the undertaking, planning to boost the processing capacity of four refineries from 80.7 million tons annually to 116.55 million tons.
The report comes on the heels of a statement from a government official that the country also has plans to triple its LNG imports over the next seven years to 70 million tons annually. Currently, India has a capacity to import 20 million tons, received at four LNG terminals. Until 2024, the government will aim to build another 11 facilities as it seeks to increase the share of natural gas in its energy mix twofold to 15 percent.
These will further rise to 15 terminals, Narendra Taneja, spokesman for the ruling BJP party said at an industry event in Indonesia, as the country’s demand for energy continues to rise steadily. This demand will not only be driven by the government’s plans to expand electricity supply to millions of households that are currently dependent on wood for their heating, cooking, and lighting needs, but also by ambitious plans for EV adoption announced last year.
By Irina Slav for Oilprice.com
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