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Indian Oil Corp mulls deferring expansion of projects to sync them with demand

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Indian Oil Corp mulls deferring expansion of projects to sync them with demand

India’s top oil firm IOC is looking to defer some of its refinery expansion projects to sync them with changes in demand patterns resulting from the pandemic and a gradual rise in the use of cleaner fuels, its chairman Shrikant Madhav Vaidya said.

In an interview with , Vaidya said oil demand in India has not been destructed but only deferred and Indian Oil Corp (IOC) was also betting big on petrochemicals to hedge fuel shocks.

Liquid fuels such as petrol and diesel will continue to play a dominant role in the country in the next two decades despite a creeping increase in the use of electric vehicles (EVs) and cleaner fuels like gas.

“You see the pie is also increasing. While we see EVs growing, the oil will remain a dominant fuel,” he said. “Even BP in its latest world energy outlook has projected India’s oil consumption to double to 10 million barrels by 2050.”

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In 2018, an Oil Ministry report had projected that oil refining capacity will rise to 439 million tonnes by 2030 from the current 250 million tonnes, to meet the rising fuel demand of a fast-expanding economy.

IOC is also looking at petrochemicals to diversify from the challenging fuels business.

It will add petrochemical plants at all its future refinery expansions and boost existing output at its current facilities to raise the percentage of crude oil converted into petrochemicals to 15 per cent from the current 5-6 per cent.

“We feel the volatility of the fuel market can be easily controlled by having a good footprint in the petrochemicals sector,” Vaidya said. “Petroleum fuels will continue to be my main business as far as turnover is concerned, but profitability will come from petrochemicals.”

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Construction Infrastructure

The Adani Enterprises unit has received a letter of approval for an NH project in Maharashtra

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The Adani Enterprises unit has received a letter of approval for an NH project in Maharashtra

Adani Road Transport Ltd (ARTL), a wholly owned subsidiary of Adani Enterprises, has received LoA for a project involving six laning of Kagal-Satara section of NH-48 (old NH4) in Maharashtra. The project will be executed under the Bharatmala Pariyojana at ₹2,008.47 crores. The construction period for the 67-km long road project is expected to be 2 years from the date of appointment and the concession period will be 18 years.

With this project award, Adani’s road portfolio will have total 14 projects with more than 5,000 lane km with asset value exceeding ₹41,000 crore spread across India.

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