India is on track to significantly boost its oil refining capacity, aiming to reach 300 million tonnes annually by 2030, according to Union Minister Hardeep Singh Puri. Speaking at the 29th Energy Technology and Innovation Meet in South Goa, Puri highlighted the country's ambition to become a global refining hub amid declining capacities in Europe and other Western regions.
Currently, India's refining capacity stands at approximately 290 million tonnes per annum. The Minister noted that this figure is set to rise as existing facilities are scaled up and new projects are initiated. This expansion is expected to not only satisfy domestic energy needs but also enhance India's ability to export petroleum products worldwide.
“With refining capacity increasing in a big way, we will be in the happy situation of not only refining for ourselves, but for the world, ” Puri stated. He emphasized the contrast between India's growing infrastructure and the reduction in global capacity, particularly in Europe, where he estimated a loss of at least 250,000 barrels per day annually.
India's strategy involves expanding several existing refineries. Facilities currently processing three million tonnes per annum are expected to double their capacity, while those handling six million tonnes will increase to nine million tonnes. These expansions underscore India's readiness to meet both domestic and international demand for petroleum products, including diesel.
Addressing concerns about potential export restrictions to ensure domestic availability, Puri reassured that India's expanding production capacity would suffice for both markets. “We are in a position to supply more to domestic and more to outside, ” he said, indicating confidence in the country's ability to balance internal and external supply needs.
Puri also highlighted that Indian refiners have been planning capacity and production increases even during periods of subdued domestic diesel consumption growth. This foresight positions the industry to ramp up output as demand patterns shift.
In contrast to the Western world's stagnation in greenfield refinery development, India continues to invest in its refining infrastructure. The Minister pointed out that no new greenfield refineries have been established in the West in recent decades, whereas India is actively pursuing such projects.
Beyond conventional petroleum products, India is also focusing on initiatives like Samudra Manthan and GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan). These programs are expected to gain momentum and complement the country's expanding energy infrastructure, further solidifying India's position in global markets.
