INDIA REVAMPS STRATEGY FOR REFINING CAPACITY EXPANSION

Delays in implementing major grassroots refinery construction projects have spurred India to refocus its downstream strategy. The upshot is that India is concentrating on expanding capacity at existing refineries to stem the growth of products imports. India had planned to construct four 120,000 b/d grassroots refineries to be on stream by 2000 (OGJ, June 18, 1990, p. 28). Disputes over scale and joint venture partners have stalled work on the Karnal project. A feasibility study is still

Feb. 11, 1991

2 min read

Delays in implementing major grassroots refinery construction projects have spurred India to refocus its downstream strategy.

The upshot is that India is concentrating on expanding capacity at existing refineries to stem the growth of products imports.

India had planned to construct four 120,000 b/d grassroots refineries to be on stream by 2000 (OGJ, June 18, 1990, p. 28). Disputes over scale and joint venture partners have stalled work on the Karnal project. A feasibility study is still under consideration on the Mangalore plant, with approval still several years away.

Plans for refineries in Madya Pradesh and Assam states are still embryonic, and those projects may not get under way until India's ninth planning period, 1996-2000.

Meantime, petroleum products demand in India continues to rise despite government mandated conservation efforts in the wake of the Persian Gulf crisis and subsequent war.

EXPANSIONS UNDER WAY, PLANNED

India has decided to expand capacity at the Cochin refinery by 40,000 b/d to a total of 130,000 b/d.

Cost is estimated at $100 million, with project completion expected by yearend 1992.

In addition to boosting Cochin's crude processing capacity, India plans to jump production of benzene at the refinery to 205,000 metric tons/year from 87,000 tons/year.

Benzene is in short supply in the country.

Madras Refineries Ltd. is hiking capacity at its Madras refinery to 130,000 b/d from 116,000 b/d through debottlenecking.

Madras may accelerate tentative plans for adding a further 60,000 b/d of capacity because a 10,000 b/d topping plant planned at Thanjavur will process only crude produced in that region.

Another potential target for expansion is the 90,000 b/d Visakhapatnam refinery, near recent oil discoveries in the coastal districts of Andhra Pradesh.