Indian Oil plans to double refining capacity - report
Indian Oil Corp. plans to nearly double its refining capacity by March 2022 as an improving domestic economy is helping to boost demand for fuel products in India, an executive with the company said on Friday.
The group is seeking a refining capacity of 125 million tpy or 2.5 million bpd by March 2022, said A.S. Basu, Indian Oil's executive director for refineries, according to a Wall Street Journal report.
Indian Oil and its 51.89%-held unit, Chennai Petroleum Corp., run half of India's 20 refineries with a total capacity of 65.7 million tpy, or 1.31 million bpd.
India's economy has grown more than 8% in recent years, driving demand for fuel products, according to the Wall Street Journal report.
Analysts predict that demand will remain strong in the country, led by transportation fuels including gasoline, diesel and jet fuel.
Over five years beginning April 2012, Indian refiners will spend about 600 billion rupees ($12.63 billion) to 700 billion rupees on capacity expansions, Basu said at an industry conference in Mumbai.
He did not specify Indian Oil’s precise investment figures.
For specific refinery expansion plans, the Wall Street Journal report can be found here.
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