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Indian Oil to invest Rs 2 lakh crore over next 5-7 years to expand refining and petrochemical capacities

September 23/2019

MOSCOW (MRC) -- The country's biggest oil firm Indian Oil Corporation (IOC) will invest Rs 2 lakh crore in next 5-7 years to expand refining and petrochemical capacities in order to maintain leadership position, through greenfield and brownfield expansions, reported Plastemart with reference to Chairman Sanjiv Singh.

The plan is to almost double its oil refining capacity to 150 mln tpa, expand fuels and LPG retailing network, jack up petrochemical production capacity and produce more crude oil and gas. The company currently is India's largest oil refiner with a group refining capacity of 80.7 mln tpa. IOC also wants to raise petrochemical production capacity to 13 mln tons from the current 3.15 mln tons. It is expanding Panipat naphtha cracking capacity and plans to set up new chemical projects in Gujarat, Paradip and Panipat.Also, the company is looking at rapid expansion in natural gas retailing by investing Rs 10,000 crore over the next eight years. IOC wants to triple current market share in gas business and expand its presence in city gas to 60 geographical areas from current 40.

IOC also plans to expand its presence in upstream oil and gas exploration and production (E&P) by investing in oil-rich countries in the Middle East and Central Asia and acquiring producing assets. Its stakes in oil and gas fields in 10 countries such as Russia, UAE, the USA and Venezuela, currently give 4.39 mln tons and the plan is to raise this to 7 mln tons by 2023-24 and further to 11 mln tons by 2030, the annual report said. While continuing expansion of its petrol pump and LPG distribution agencies, the firm will focus on retailing in rural markets to expand its marketing. It will automate and modernise fuel stations as well as set up electric vehicles (EV) charing stations.

IOC said it also plans to increase its overseas footprint to 8% of turnover with additional regional hubs in South Africa and Nigeria and agents/distributors in 20 countries to scout for new business.

As MRC informed earlier, Indian Oil Corp took off-stream its naphtha cracker for a planned turnaround in early-September, 2019. The cracker is slated to remain off-line, for a period of around one month. Located in Panipat, in the northern Indian state of Haryana, the cracker has an ethylene production capacity of 857,000 mt/year and propylene capacity of 425,000 mt/year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, crude and gaz condensate, PP block copolymer, homopolymer PP, propylene, ethylene, petrochemistry, Indian Oil Corp, India, Russia.
Category:General News
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