State-owned Indian Oil Corp. (IOC) is considering investing Rs 30,000 crore (US$4.9bn) in the construction of a 15 Mt/year (300,000 bbl/d) refinery in Mundra in the State of Gujarat (India). IOC has pre-selected two sites for a coastal refinery, in Mundra (the land would be leased from Adani Power) and in another minor port of Maharashtra (IOC would have to buy the land).
The company, which operates seven refineries in India with a total capacity of 54.2 Mt/year and owns stakes in a 11.5 Mt/year facility through its subsidiary Chennai Petroleum, plans to increase its processing capacity to 100 Mt/year by 2021-2022. The company's facilities are all landlocked and its first coastal project in Paradip (Odisha) will come on stream in 2014. The 15 Mt/year project could later be expanded to 20 Mt/year. To reach its 100 Mt/year target, IOC will expand the capacity of its Koyali refinery (Gujarat) from 13.7 Mt/year to 18 Mt/year at a cost of Rs. 4,858 crore (US$800m) and its Mathura refinery from 8 Mt/year to 11 Mt/year.