IOC plans to double refining capacity by 2030
Indian Oil Corp (IOC), the nation’s largest oil company, plans to nearly double refining capacity to 150 million tons by 2030 to meet fast expanding energy needs of the country, its Chairman B Ashok said. The company has capacity at refineries to produce 80.7 million tons per annum of fuel currently. “IOC is self-sufficient in the refining segment, but keeping in view the rising demand for petroleum products in the short-term, we are aiming at a refining capacity of about 100-110 million tons per annum by the year 2022 and progressively scale it up to at least 150 million tons by the year 2030,” he said. International Energy Agency’s World Energy Outlook projects 4 per cent CAGR growth in India’s fuel demand to 348 million tons by 2030, from 184 million tons in 2015-16. BP projects demand to be 335 million tons while EIA has pegged it at 294 million tons, which translates into a CAGR of 3 per cent. India has a refining capacity of 232.06 million tons. “Our core business is liquid fuels, LPG, lubes, petrochemicals and natural gas. With the prognosis that fossil fuels will continue to dominate the energy mix till the year 2040, we have a fairly large window of opportunity to profitably expand in our core business while at the same time getting ready for the low-carbon economy of the future,” he said IOC will expand its refining capacity to 104.55 million tons by 2022 from the current 80.7 million tons per annum with an investment of about Rs 400 billion. It is looking to scale up its Koyali refinery in Gujarat to 18 million tons from 13.7 million tons while capacity of the Panipat refinery in Haryana will be raised by a quarter to 20.2 million tons from the current 15 million tons. A 3-million tons capacity addition each is planned for Uttar Pradesh’s Mathura and Bihar’s Barauni refineries, which will take their capacity to 11 million tons and 9 million tons, respectively. The recently-commissioned 15 million tons Paradip refinery in Odisha will see a capacity addition of 5 million tons while about 3 million tons will be added in IOC’s Digboi and Bongaigaon refineries in the North-East. He, however, did not give details of the expansions that will take the capacity to 150 million tons. Ashok said IOC is also expanding its pipeline and retail network. “We have 45,000-plus customer touch points as of now and this number will go up further in the next five years, especially in rural and virgin markets in order to secure the first mover advantage,” he said. Also, a Strategy Cell has been set up, which is preparing roadmaps for future growth of IOC as an energy business amid multiple scenarios, he added. Max Pacioretty Womens Jersey
Government engaged in phase two of strategic oil reserves
With global crude oil prices having dropped to under $50 barrel levels amid a supply glut, the Indian government has been giving attention to developing the country’s strategic petroleum reserves for enhanced energy security. Earlier this week, Petroleum Secretary K.D. Tripathi, along with senior officials of state-run Indian Strategic Petroleum Reserves Ltd (ISPRL) and Engineers India Ltd (EIL), visited the proposed petroleum storage site at Chandikhol in Odisha, a Petroleum Ministry statement here said. “The underground storage facilities at Chandikhol will be created within the available government-owned land parcel, and would involve a significant development in the region with the greater objective of Odisha becoming the energy gateway of the Eastern and Northeastern region of India,” the statement said. “The estimated capital cost of the Chandikhol project is approximately Rs 50 billion,” it added. The first phase of implementing India’s strategic oil reserves would be completed by end of this fiscal with over 5 million tons (MT) of crude reserves in place in three separate storage facilities. The facilities entail storage of crude oil in underground rock caverns. “Under Phase I storage program, three facilities have been created at Vishakhapatnam, Mangalore and Padur, with a total storage capacity of 5.33 MT,” the ministry said. Petroleum Minister Dharmendra Pradhan had told reporters earlier this year that preparations had started for the second phase of construction where it is planned to build reserves of 12.5 MT, so that by the end of the second phase India has strategic reserves of around 17.8 MT. “Government is considering the proposal for establishment of Phase II storage program for a total storage capacity of 10.0 MT, which includes 4.4 MT storage capacity at Chandikhol and 5.6 MT storage capacity at Bikaner (Rajasthan),” the ministry said in a statement on Saturday. India imports nearly 80 percent of its oil requirements, and the government had decided to set up strategic crude oil storages as a cushion against external supply disruptions. These storages would be in addition to the existing ones of the oil companies. The construction of the storage caverns is being managed by ISPRL, which is a special purpose vehicle created by the Oil Industry Development Board (OIDB). Justin Smoak Authentic Jersey
States await Rs 240 billion bounty from excise on oil products’
Indian states await a big boost to their finances this year as they are on course to get an additional Rs 240 billion bounty or more from the Centre by way of the excise duty share on oil products this fiscal year, which is set to jump by around Rs 600 billion. As per the 14th Finance Commission wards, the Centre has to part 42 per cent of the incremental excise mop up on oil products with the states from 2015 through 2020 fiscals. Since the government has been increasing the excise duty on oil products since mid 2014 after the crash in crude prices, it has been biggest contributor to tax kitty. While it contributed as much as 63 per cent of the total excise mop-up last year, up from 46 per cent in the previous year, it is going to jump by around Rs 600 billion this year to Rs 1786 billion. The government has jacked up the basic excise duty on diesel and petrol by Rs 6.5/litre and Rs 7.75/litre, respectively, in four tranches between November 2014 and January 2015. “Excise collections on oil products may expand by an incremental Rs 550-600 billion in the current fiscal year and 42 per cent of these incremental collections would devolve to the states. “This is equivalent to Rs 220-240 billion, which is sizeable in relation to the estimated devolution of excise on fuels of Rs 364 billion in 2015-16, and a positive factor for the states’ fiscal health this fiscal,” Icra’s chief economist Aditi Nayar said in a report. She adds this estimate is contingent on the facts that the basic excise duty on petrol and diesel continues unchanged in the remainder of this year and consumption of these items grows by an average of 5 per cent. The contribution of oil products to the overall excise duty levied by the Centre has increased significantly from 46 per cent in 2013-14 to around 63 per cent in 2015-16, following a high growth rate of excise on fuels in the recent years, the report notes. While the Centre mopped up Rs 794 billion from oil products in 2014-15, 23 per cent of it or Rs 179 billion were devolved to the states in that year. Cory Spangenberg Womens Jersey