Centre-owned Oil Corporations IOC
NEW DELHI: Centre-owned oil corporations IOC, BPCL and HPCL immediately signed an agreement to jointly set up India’s greatest refinery at Ratnagiri district of Maharashtra at a cost of USD 30 billion or Rs 2 lakh crore.
Indian Oil Corp (IOC) would be the lead companion with 50 per cent stake while Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) will take 25 per cent stake every.
The three oil refining and advertising and marketing firms signed the joint enterprise settlement right here this evening. The pact was signed by IOC Chairman Sanjiv Singh, HPCL Chairman and Managing Director Mukesh Kumar Surana and BPCL Chairman and Managing Director D Rajkumar.
Officials said the 60 million tonne capacity refinery at Babulwadi, Taluka Rajapur in Ratnagiri district is being arrange conserving in mind the long run gasoline demand and the export potential of the country.
The refinery and the accompanying mega petrochemical complex can be arrange in two phases. Phase-1 will be forty million tonnes together with an aromatic advanced, naphtha cracker and polymer complicated. Part-1 will cost Rs 1.2-1.5 lakh crore and can come up in five-six years from the date of land acquisition, they stated. Your entire refinery will include three crude items oil and gas market outlook 2018 of 20 million tonnes each — first of these might be part Strategic of phase-1. The second phase will price Rs 50,000-60,000 crore, they said.
IOC has been taking a look at West coast for a refinery as catering to prospects in West and South was troublesome with its refineries principally in the North.
HPCL and BPCL have additionally been taking a look at an even bigger refinery due to constraints they face at their Mumbai items. The refinery will produce petrol, diesel, LPG, ATF and feedstock for making petrochemicals which might be fundamental building blocks in plastic, chemical and textile industries.
Fifteen million tonnes a yr is the biggest refinery any public sector unit has arrange in a single stage.
IOC not too long ago began its 15 million tonnes unit at Paradip in Odisha. Reliance Industries holds the distinction of constructing the biggest refinery in India until now. It built its first refinery at Jamnagar in Gujarat with oil and gas market outlook 2018 a capacity of 27 million tonnes, which was subsequently expanded to 33 million tonnes. It has constructed another unit adjoining to it for exports, with a capacity of 29 million tonnes. The refinery being planned by the state-owned companies will probably be bigger than that. The phase-1 itself will be greater than anybody single unit.
Being on the West coast will present the unit a pure benefit of easily sourcing crude oil from the Middle-East, Africa and South America, officials said, adding East coast was not being thought-about as transport crude oil there will add at the very least USD 1 per barrel to cost. Also, transferring products to consumption heartland from the West is not going to be troublesome.
India has a refining capacity of 232.066 million tonnes, which exceeded the demand of 194.2 million tonnes in 2016-17 fiscal.
In keeping with International Energy Agency (EA), this demand is predicted to succeed in 458 million tonnes by 2040. IOC has eleven refineries with a complete capability of eighty one.2 million tonnes while BPCL has four refineries with a complete capability of oil and gas market outlook 2018 33.4 million tonnes. HPCL has three refineries with a complete capacity of 24.8 million tonnes.