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India Aims Big in Oil World: $40 Billion Refinery Complex and $6 billion BP & Reliance investment

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May 19, 2017
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Indian oil companies have signed an agreement to build one of the world’s largest integrated refinery-cum-petrochemical complexes in Maharashtra state. The 60 million metric ton per annum (MMTPA) complex will be built at an estimated cost of $40 billion and is expected to be commissioned by 2022.


New Delhi (Sputnik) — The Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) will build the complex with IOC hold the 50 percent stake in the west coast refinery project while HPCL and BPCL will own 25 percent each.

"It will be a green refinery comprising 50 units designed to operate at the highest level of efficiency, and will be self-sufficient in power and utilities requirements, besides creating a benchmark in environment management," an IOC official said.



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As India is migrating to global standard fuels by April 1, 2020, Indian oil companies are investing $13.5 billion for refinery upgradation. The west coast project will also be designed to produce Euro-VI and above grade transportation fuels. The refinery will have an in-built flexibility for processing a wide spectrum of light and heavy crude oil grades. Indian refiners are scouting for cheaper heavy crude oil grades from Iran and Iraq in recent years. This is evident from the decision of filling half of country's three strategic oil reserves with Iranian oil. India has created oil reserve in its underground rock caverns of storage capacity 5.33 million metric tons of crude oil at three locations.


"It (west coast project) will also be able to produce on-demand product mix of petrol and diesel streams, as well as other refined products and petrochemical streams with the highest level of integration and energy efficiency," IOC said in a statement. London-based IHS has been entrusted with the market study for the chemicals and petrochemicals to be produced at the complex.

Earlier this year, Aramco of Saudi Arabia and Shell had expressed their interest in storing crude oil in the strategic petroleum reserve facilities. India needs to import 80 percent of the total oil requirement of the country.
 
There is a reason why we are one of the biggest exporters of Petrol, Diesel to other countries. We have an overcapacity of refineries, which is good. We should import more and export more...
 
Over the past decade, India's crude oil imports have doubled to about 3.8 MMbpd, making it the third largest crude oil importer (behind China and the US). With exponential growths in the manufacturing & industrial sectors, India's oil demand is forecast to reach 6.6 MMbpd (329 MT) by 2030 & 10 MMbpd (498 MT) through 2040 making it the fastest growing crude customer in the world as per the International Energy Agency.

Already a global refining hub, the second largest refinery in Asia (after China) & the fourth largest in the world, India would still need to add another 100 MT of refining capacity by 2030 to meet its growing demands. The planned west coast refinery will propel India’s capacity to 294.5 MMTPA from 234.5 MMTPA currently.

According to company officials, the refinery-cum petrochemicals complex is designed to produce Euro-IV and above grade transportation fuels, the refinery will have in-built flexibility for processing a wide spectrum of light and heavy crude oil grades, utilising various blending techniques.

The company officials add that it will also be able to produce on-demand product mix of petrol and diesel streams, as well as other refined products and petrochemical streams with the highest level of integration and energy efficiency.
According to the Memorandum of Understanding, Phase-1 of the project will cost between Rs 1.2 lakh crore and Rs 1.5 lakh crore. It is expected to come up in 5-6 years from the date of land acquisition. The first phase will be a 40 mt unit with an aromatic complex, naphtha cracker and polymer complex. Phase-2 of the project is expected to cost approximately Rs 50,000 crore to Rs 60,000 crore.

He added that the three fuel retailers are open to the concept of having strategic partners but the partner cannot be a majority stakeholder in the project. Based on the terms of the MOU already signed between the three OMCs, IOC will hold 50 per cent stake in the refinery complex while HPCL and BPCL will hold 25 per cent each.

http://energy.economictimes.indiati...nery-by-2022-at-a-cost-of-40-billion/59154630


Will be bigger than Jamnagar one?

1.2 MMbpd (60 MT) Greenfield refinery has also been announced by the Government

enlighten me too
 
Well 40$bn is a lot of money, as per my opinion govt should be consider investing such amount on renewables, electric and automated transportation, petrol is going to be thing of past very soon.
 
Well 40$bn is a lot of money, as per my opinion govt should be consider investing such amount on renewables, electric and automated transportation, petrol is going to be thing of past very soon.

India plans nearly 60% of electricity capacity from non-fossil fuels by 2027


But what's the catch? What the big picture of such investments?

Two more strategic oil reserves to be built

Two more strategic oil reserves with a combined capacity of 10 million metric tonnes (MMT) — at Chandikhole in Odisha and at Bikaner in Rajasthan with three such reserves at Visakhapatnam, Mangalore and Padur in Kerala — with a combined capacity of 5.33 MMT.
 
Will be bigger than Jamnagar one?

There might be something cooking under the KG basin.

http://economictimes.indiatimes.com...s-dharmendra-pradhan/articleshow/58885479.cms
In the next 10 years, $20-30 billion will be spent in KG Basin alone.


Its good to aim high as (fiscally) possible...but be prepared with appropriate hedge.

The decision on 100% EVs by 2030 is yet to be taken. But we will still need oil for many more decades, particularly trucks, tractors, harvesters, power backup, military vehicles, aviation fuel etc. Not to mention, many countries will still be dependent on oil.
 
Doesn't make sense. Oil is tanked. There's so much over capacity across the world and countries are cutting production. Why spend so much money on something that's going down? Why not instead invest on alternatives/nuclear energy?
 

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