Released December 02, 2024 | NEW DELHI
en
Researched by Industrial Info Resources (Sugar Land, Texas)--India's petroleum refining sector is experiencing substantial growth, owing to a rise in crude oil imports, higher refinery runs after maintenance activities and surging exports of petroleum products. As per recent news, India became the largest exporter of refined fuels to Europe, with exports touching 400,000 barrels per day (BBL/d) in November. The growth can be attributed to the trade policy changes between Europe and Russia due to the Russia-Ukraine war and multiple refinery closures in Europe.
The world's third-largest consumer of oil, India imports more than 85% of its crude oil from other nations, according to The Indian Express. In October, crude oil imports of the country rose 4.2% year over year, predominantly due to large crude fleets from Russia, according to The Economic Times. Prior to the Russia-Ukraine conflict, less than 1% of India's imported crude oil came from Russia. Russian crude oil now makes up nearly 40% of India's imports.
With EU member states imposing sanctions prohibiting the import of crude and other refined products from Russia, India has become a significant exporter of refined fuels to Europe. While the policy bans the import of crude and related products from Russia, it doesn't specify whether non-Russian countries that export fuel to Europe should also refrain from importing or processing Russian crude. Thus, India has been buying crude from Russia at discounted rates, becoming its second largest buyer with imports as much as 1.7 million BBL/d, according to The Hindu, and exporting refined goods like jet fuel and diesel to the EU.
Alongside trade troubles, various refinery and crude unit closures in Europe--due to expensive feedstock, obsolete infrastructure and tough competition from Middle Eastern and Asian contenders--have left the region in the hands of global players. Hence, the EU has been meeting much of its fuel needs through imports. With winter approaching, European nations are expected to witness an uptick in demand for fuel oil and diesel, which countries like India, the U.S. and Saudi Arabia are expected to meet.
Besides exports to Europe, India's petroleum refining sector is also expanding due to rising domestic consumption and exports to other nations like Singapore, United Arab Emirates (UAE), the U.S. and Australia. Hence, India is ramping up its refining capabilities and investing in new capacity buildouts and expansions of existing facilities to meet rising demand.
Industrial Info is tracking 22 petroleum refineries in India with an overall design capacity of 5.282 million BBL/d. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Plant Database can click here for a list of refinery profiles. Industrial Info is also tracking 610 active refining capital expenditure projects in India, worth nearly US$89 billion. Subscribers to the GMI Petroleum Refining Project Database can click here for the project reports.
Click on the image at right for a chart showing India's present and planned refining capacity.
By state, Maharashtra is the biggest investment driver in the country with a total potential spending pipeline of nearly US$30 billion. Gujarat follows with potential spending of more than US$13 billion, Tamil Nadu with more than US$9 billion and Andhra Pradesh with US$7 billion. An investment of about US$6 billion is also being tracked in Rajasthan, while more than US$5 billion is in Odisha. Other states with significant potential investments include Assam, Haryana, Karnataka, Madhya Pradesh and Bihar.
With an aggregate project investment of about US$76 billion, Indian Oil Corporation Limited (New Delhi, India), Oil and Natural Gas Corporation Limited (New Delhi) and Rosneft NK PAO (Moscow, Russia) are the top three players in the country. They collectively hold a market share of about 86%.
About 48% of the spending is geared toward unit addition projects, while 46% is aimed at grassroot developments. With about 75% of the investment in the initial planning stages and 20% already under construction, most of these projects are anticipated to be completed in December 2025. The remaining projects are expected to reach completion by December 2030.
With six grassroot refineries in the pipeline, only one is under construction: HPCL Rajasthan Refinery Limited's (HRRL) 180,000-BBL/d Barmer Refinery, where the lone crude unit is expected to start operations by March 30, 2025. The other five refineries are in the planning stages and could add 1.06 million BBL/d of capacity by 2030.
India is anticipated to enhance its refining capacity and position itself as a leading exporter of refined fuels in the near future.
"But it's not only grassroot refineries that will add refining capacity in India. In-plant unit additions and unit expansions are more likely to add fuel production capabilities in the short term," said Hillary Stevenson, senior director, energy market intelligence at IIR Energy. Nearly 1.5 million BBL/d of atmospheric distillation capacity at nine units are slated to be added at existing facilities, including one mothballed site. On top of that, five units are set to expand, adding 258,000 BBL/d.
Another refinery plans to expand: IOCL will increase its 120,000-BBL/d Barauni Refinery by building a new 180,000-BBL/d crude distillation unit (CDU) and closing the three older units. These units, which use outdated technology, have become energy-inefficient and will be phased out once the new crude unit is stabilized, according to Industrial Info's research. Subscribers can click here for the project report.
Given all of those changes, India's refining capacity could rise by 2.835 million BBL/d to 8.135 million BBL/d by the end of 2030. "However final approval for units, particularly those not yet under construction, will heavily depend on population growth and electric vehicle adoption," Stevenson said.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
The world's third-largest consumer of oil, India imports more than 85% of its crude oil from other nations, according to The Indian Express. In October, crude oil imports of the country rose 4.2% year over year, predominantly due to large crude fleets from Russia, according to The Economic Times. Prior to the Russia-Ukraine conflict, less than 1% of India's imported crude oil came from Russia. Russian crude oil now makes up nearly 40% of India's imports.
With EU member states imposing sanctions prohibiting the import of crude and other refined products from Russia, India has become a significant exporter of refined fuels to Europe. While the policy bans the import of crude and related products from Russia, it doesn't specify whether non-Russian countries that export fuel to Europe should also refrain from importing or processing Russian crude. Thus, India has been buying crude from Russia at discounted rates, becoming its second largest buyer with imports as much as 1.7 million BBL/d, according to The Hindu, and exporting refined goods like jet fuel and diesel to the EU.
Alongside trade troubles, various refinery and crude unit closures in Europe--due to expensive feedstock, obsolete infrastructure and tough competition from Middle Eastern and Asian contenders--have left the region in the hands of global players. Hence, the EU has been meeting much of its fuel needs through imports. With winter approaching, European nations are expected to witness an uptick in demand for fuel oil and diesel, which countries like India, the U.S. and Saudi Arabia are expected to meet.
Besides exports to Europe, India's petroleum refining sector is also expanding due to rising domestic consumption and exports to other nations like Singapore, United Arab Emirates (UAE), the U.S. and Australia. Hence, India is ramping up its refining capabilities and investing in new capacity buildouts and expansions of existing facilities to meet rising demand.
Industrial Info is tracking 22 petroleum refineries in India with an overall design capacity of 5.282 million BBL/d. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Plant Database can click here for a list of refinery profiles. Industrial Info is also tracking 610 active refining capital expenditure projects in India, worth nearly US$89 billion. Subscribers to the GMI Petroleum Refining Project Database can click here for the project reports.
By state, Maharashtra is the biggest investment driver in the country with a total potential spending pipeline of nearly US$30 billion. Gujarat follows with potential spending of more than US$13 billion, Tamil Nadu with more than US$9 billion and Andhra Pradesh with US$7 billion. An investment of about US$6 billion is also being tracked in Rajasthan, while more than US$5 billion is in Odisha. Other states with significant potential investments include Assam, Haryana, Karnataka, Madhya Pradesh and Bihar.
With an aggregate project investment of about US$76 billion, Indian Oil Corporation Limited (New Delhi, India), Oil and Natural Gas Corporation Limited (New Delhi) and Rosneft NK PAO (Moscow, Russia) are the top three players in the country. They collectively hold a market share of about 86%.
About 48% of the spending is geared toward unit addition projects, while 46% is aimed at grassroot developments. With about 75% of the investment in the initial planning stages and 20% already under construction, most of these projects are anticipated to be completed in December 2025. The remaining projects are expected to reach completion by December 2030.
With six grassroot refineries in the pipeline, only one is under construction: HPCL Rajasthan Refinery Limited's (HRRL) 180,000-BBL/d Barmer Refinery, where the lone crude unit is expected to start operations by March 30, 2025. The other five refineries are in the planning stages and could add 1.06 million BBL/d of capacity by 2030.
India is anticipated to enhance its refining capacity and position itself as a leading exporter of refined fuels in the near future.
"But it's not only grassroot refineries that will add refining capacity in India. In-plant unit additions and unit expansions are more likely to add fuel production capabilities in the short term," said Hillary Stevenson, senior director, energy market intelligence at IIR Energy. Nearly 1.5 million BBL/d of atmospheric distillation capacity at nine units are slated to be added at existing facilities, including one mothballed site. On top of that, five units are set to expand, adding 258,000 BBL/d.
Another refinery plans to expand: IOCL will increase its 120,000-BBL/d Barauni Refinery by building a new 180,000-BBL/d crude distillation unit (CDU) and closing the three older units. These units, which use outdated technology, have become energy-inefficient and will be phased out once the new crude unit is stabilized, according to Industrial Info's research. Subscribers can click here for the project report.
Given all of those changes, India's refining capacity could rise by 2.835 million BBL/d to 8.135 million BBL/d by the end of 2030. "However final approval for units, particularly those not yet under construction, will heavily depend on population growth and electric vehicle adoption," Stevenson said.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
