Hardeep Singh Puri says future Indian refineries may have lower capacity

30 May 2023 , 02:41 AM

In order to increase its yearly refining capacity to 9 million barrels per day (bpd), India will consider constructing smaller oil refineries due to difficulties obtaining land, according to oil minister Hardeep Singh Puri on Tuesday.

India, the third-largest oil importer and user in the world has an estimated 5.2 million bpd of oil refining capacity.

Given that India is anticipated to account for a fourth of the increase in global oil consumption by 2040, international oil companies view India as a reliable market for their oil.

Refineries are expensive. Because if I make it too huge then land acquisition and other obstacles come in the way, Puri said reporters on the side-lines of an industry event. ‘We are looking at a high amount of 20 million tonnes per annum, lesser ones.

He claimed that India needed to develop a plan for increasing its refining capacity to 9 million barrels per day.

One of the main causes of the third-largest economy in Asia’s slow infrastructure development is issues with land purchases.

According to 2019 estimates, delays in procuring the site have nearly put a stop to the project, which was originally scheduled for 2025, and increased expenses by 36% to $60 billion.

According to Puri, new refineries will also produce renewable hydrogen and petrochemicals among other things.

Prime Minister Narendra Modi has established a 2070 net zero objective and is assisting businesses in developing green projects by offering a variety of incentives.

Along with increasing its capacity for renewable energy, India plans to establish its own 5 million tonnes per year of green hydrogen production capability by 2030.

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