IOC will invest US$3.7bn in Gujarat refinery over 2018-2022 (India)

9 Mar 2018

India's largest oil company Indian Oil Corp. (IOC) will invest RUP24,174 crore (approximately US$3.7bn) to support the expansion of the Koyali refinery in Gujarat (India) over the next five years, of which RUP15,034 (US$2.3bn) to extend the refinery's processing capacity by 4.8 Mt/year, from 13.7 Mt/year to 18 Mt/year, RUP1,315 crore (US$202m) in the BS-IV fuel project, RUP3,380 crore (US$518m) in BS-VI fuel. The Indian government has set the 2020 deadline to supply BS VI fuel and the upgrade has to be completed before it.

In February 2018, IOC announced plans to invest RUP70,000 crore (US$10.9bn) to step up its oil refining capacity in India by approximately 44% by 2030, from the current 80.7 Mt/year to 116.55 Mt/year by 2030, to cope with the country's rising energy demand.

The current Indian refining capacity (around 250 Mt/year) exceeds the domestic consumption rate but demand will grow by 3.5-4%/year by 2030. The government believes that the fuel demand will reach 335 Mt/year by 2030 and aims to increase the domestic refining capacity to 415 Mt/year by 2020 and to 439 Mt/year in 2040.

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