The India CEO Series through S&P Global Commodity Insights is a compilation of one of a kind interviews by way of Asia Energy Editor Sambit Mohanty with a number of the leaders of the largest electricity corporations in India.
Indian Oil Corp.’s strategic increase roadmap over the subsequent 5-6 years will witness refinery expansions utilizing cleaner technologies, an multiplied petrochemicals footprint, and a numerous range of clean gas options, because it seems to strike a balance among conventional and new power offerings, its chairman stated.
In an distinct interview with S&P Global Commodity Insights, Shrikant Madhav Vaidya stated that even as India’s robust oil call for increase outlook has made it imperative to have a bigger refining ability, it turned into vital to suppose beyond oil because the strength panorama became changing rapid.
“As the world shifts closer to decarbonization, the future of India’s oil and refining zone stays pivotal, given the U .S’s substantial power wishes. Oil will hold to play a considerable role in India’s average power blend for the foreseeable destiny, driven through growing call for for shipping fuels and petrochemicals,” Vaidya stated.
“This increase, but, must be balanced with the worldwide push for sustainability. India is probable to recognition on integrating cleanser technologies and more green tactics inside its refineries to limit the environmental effect at the same time as still meeting its power desires,” he added.
Oil story intact
Vaidya stated that through 2030, the refining capacity of the IOC institution is set to boom by means of almost 33% to 107.Four million metric tons in step with year, from the present day 80. Eight MMt/y.
“India’s oil demand is projected to rise from 5.4 million b/d in 2023 to around eight.Three million b/d with the aid of 2050. To meet this increasing call for, India will need to seriously enlarge its refining capacity,” Vaidya delivered.
Under the bottom-case state of affairs of Commodity Insights, India’s demand for key petroleum products is projected to stay advantageous yearly until 2050. However, boom is predicted to plateau in the very last five years of the forecast period, pushed with the aid of the growing emphasis on decarbonization.
From 2023 to 2050, Commodity Insights anticipates that India’s basic oil demand will upward thrust by 2.4 million b/d in comparison to contemporary tiers.
In the petrochemicals section, IOC is looking to significantly extend its presence by way of growing the Petrochemical Intensity Index (PII) to fifteen% by way of 2030, from the contemporary 6.1%. This could contain boosting the petrochemical capacity from 4.Three MMt/y to 13.6 MMt/y via 2030, Vaidya stated.
“Our expansion plans consist of consolidating our leadership inside the home polypropylene market with new capacities being delivered at our Gujarat, Barauni, and Panipat refineries,” he stated.
“Additionally, we are developing an incorporated paraxylene and purified terephthalic acid complex at the Paradip refinery and introducing uniqueness chemicals like butyl acrylate and iso-butanol at the Gujarat refinery, and poly-butadiene rubber on the Panipat refinery,” he delivered.
Vaidya said the organization become making a sturdy push to have a far larger presence in gasoline in addition to in the upstream quarter.
“Our contemporary percentage of annual hydrocarbon production stands at 4.25 million metric lots of oil equivalent and we are working steadfastly to growth this to 11 MMtoe with the aid of 2030, with the aid of pursuing opportunities each in India and overseas,” Vaidya stated.
On some of its gasoline tasks, Vaidya stated plans are underway to double the capability of the Ennore LNG Terminal and enlarge the City Gas Distribution network throughout forty nine geographical areas. “IOC is also organizing LNG stations along main highways to aid the use of LNG as a shipping gasoline.”
Middle Eastern, Russian materials
Vaidya said Russian oil purchases by means of India had helped in maintaining the global call for and deliver in balance, which in flip had helped to preserve international oil costs in test.
“The scenario might had been exceptional had the largest intake facilities of oil observed the route taken via the Western international. Russia accounts for greater than 10% of world oil manufacturing and accordingly absolutely removing the Russian barrels was never an option for refiners across the globe,” Vaidya said adding that Indian refiners imported about 2.Zero million b/d of Russian oil in 2023.
Before the Russia-Ukraine warfare, over 60% of India’s crude basket comprised Middle Eastern crudes, with North America, West Africa, and Latin America as different vast individuals. However, in 2023, Russia accounted for about 40% of India’s total crude imports, a great growth from just five% in 2019. This shift has resulted in Russia capturing market percentage from other main offering areas, in line with Commodity Insights.
“India has clearly controlled to strike a very good balance in sourcing from two most important crude oil suppliers — the Middle East and Russia. Going ahead, this need to not be a big issue due to the fact India’s average refining potential is predicted to growth, and hence the improved demand for oil to satisfy refinery demand,” Vaidya said.
Share of Middle Eastern, Russian Crude Oil In India
He delivered that Russia had the capability to deliver both high sulfur in addition to low sulfur crude compared to the Middle East, that’s presenting on the whole excessive sulfur crude to India. Indian refiners, mainly IOC, had processed all of the crudes available from Russia, which would help in making choices within the future at the grades that are excellent proper for its refinery system.
“Further, various refineries have recently been commissioned in Middle Eastern international locations and the supply of crude oil from the Middle East might be a restricting issue for destiny elements,” Vaidya said.
Energy transition journey
Vaidya stated IOC was strategically reworking itself into an included power agency by increasing its footprint beyond conventional oil operations.
In outlining IOC’s growth blueprint and funding strategies throughout the electricity spectrum, Vaidya highlighted the pivotal function of inexperienced hydrogen in understanding a worldwide internet-0 future. IOC is devoted to growing a renewable power portfolio of 31 GW by 2030, a move with a purpose to extensively bolster India’s decarbonization tasks, he stated.
“IOC is a big proponent of cutting-edge bioenergy. Apart from generating advanced biofuels and sustainable aviation fuel, IOC has recognized 4 of its group refineries for co-processing non-fit for human consumption oils in refineries to provide SAF,” he said.
In the electric mobility area, IOC has set up over 10,000 EV charging stations. The organisation had also hooked up international partnerships to explore advanced lithium-ion cellular manufacturing in India, Vaidya introduced.
“Through our joint project IndoFast Swap Energy, a collaboration with SUN Mobility, Singapore, we are also having a bet big on the battery swapping model, which has high ability inside the context of India’s growing two-wheeler and 3-wheeler market. We have additionally set up global partnerships to explore advanced lithium-ion cell manufacturing in India,” he introduced.
