IOC to expand Barauni refinery

OREANDA-NEWS. Indian state-controlled refiner IOC plans to boost capacity at its Barauni refinery by 50pc while simultaneously upgrading units to produce higher grade fuels.

Work will start in June to increase capacity at the refinery in Assam state from its current 120,000 b/d, Indian oil minister Dharmendra Pradhan said, without specifying a budget and completion date.

An oil product pipeline will also be built to Amlekhganj in Nepal via Raxaul for exports from Barauni. The Indian government also plans to set up a LPG export pipeline to Nepal.

IOC, with 1.3mn b/d existing capacity, is spearheading the BJP government's vision to turn India into a refining hub and boost product exports. IOC plans to commission the long-delayed 300,000 b/d refinery on the east coast at Paradip in March this year, while it is working on plans to expand Koyali refinery in Gujarat state to 360,000 b/d from around 274,000 b/d by 2017. It also plans to expand crude processing capacity of the Panipat refinery in Haryana state to 400,000 b/d from 240,000 b/d.

State-controlled Indian refiners could increase capacity by almost 45pc in the next three years, with expansions aiming to meet domestic demand rather than to boost exports.

India's refining capacity may rise from 4.3mn b/d to 6.2mn b/d by 2017 if all expansion plans are carried through, according to forecasts. These projections also have India's oil product demand possibly rising from 158mn t/yr in the 2013-14 fiscal year ending 31 March to 187mn t/yr by 2016-17 and 244mn t/yr by 2021-22. This means India will need to add 85mn-95mn t/yr (1.7mn-1.9mn b/d) of refining capacity to meet demand in 2021.