Constraints Related to Capacity Building (Oil & Gas)
Published on: Apr 20, 2017

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It is well known fact that India is highly dependent on import for crude. However, it’s also true that India is among the key exporters refined petroleum products globally (Sounding Contradictory….!!!). Our domestic Crude oil production is 900000 barrels per day, which is comparatively far less even the capacity of 4.6 million barrels per day which we have. Now the Middle Eastern Countries increasing up their refining capacity, the competition in export market will surely going to be intensify. So in context of India, to keep it’s exporting marketing share as it is (if we can’t increase), it’s required to enhance the domestic crude oil refining capacity in order to retain its market share. 

 

Indian Refineries:

Currently India has 22 major refineries in operational mode with a total capacity of 4.6 mbpd. IOCL with its subsidiary, CPCL, is India’s largest refinery. It has appx 35% of India’s refining capacity. Although, India is now second largest refiner (after China), with 4th largest refining capacity in world (Only US, China and Russia are ahead). According to IEA projection, India’s reliance on oil import will increase by 90% till 2040 (Scary figure).

 

Few Projects:

The 60 mtap Ratnagiri refinery and mega petrochemical complex is one such project being set-up to increase India’s refining capacity. It will set-up in two phases, 1st phase will have a capacity of 40 mt together with an aromatic, naphtha cracker and polymer complex. It will cost around INR 1.5 Trillion. 2nd phase will have a capacity of 20 mt will cost around INR 600 billion.

 

Size and Location:

Strategically, the western coast of country has chosen for the refinery. Since long time IOCL was interested to set up facility on this coast so as to meet the demand from large consumer base. BPCL and HPCL also looking at a bigger refining facility because of constraint faced at Mumbai units.

 

 

 

Land Acquisition:

Plan to be set-up in the coastal are in the Konkan region of the state, the project is being jeopardized by opposition from activists. The activists have also been opposing the Jaitapur nuclear project in Ratnagir district which was planned to be set-up at Tavsal village. At Tavsal, HPCL has also acquire land in 2012 for a much smaller refinery, but due to stiff resistance from locals, the company has to shift the project to Barmer, Rajasthan. 



About the author

Nipun Sourishiya

Social HR Marketer | Hiring Experts for Smart City

India,New Delhi

HR Professional with 9+ Years of experience.

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