India plans to double oil refining capacity by 2030
Indian Oil Minister Dharmendra Pradhan said recently that the country plans to nearly double its refining capacity to 450-500 million tons/year (10 million barrels/day) in the next 10 years to meet growing domestic fuel demand and export markets .
The country's current oil refining capacity is about 250 million tons per year.
India is currently the third largest importer of crude oil in the world.
He said that the increase in production capacity includes the expansion of existing plants and the construction of new refineries.
He said that the country will build a 60 million tons/year new refinery in the West Gulf, which will soon start construction.
85% of India’s energy demand is dependent on imports, and it is currently planning to meet the increase in demand ahead of time.
Dharmendra Pradhan said in 2019 that the investment in large refineries planned by India and Saudi Arabia and the UAE National Petroleum Corporation will exceed the previously estimated US$44 billion. The cost of this large project may rise.
In June 2018, Saudi Aramco and Abu Dhabi National Petroleum (ADNOC) and the Indian National Petroleum Corporation signed a framework agreement and memorandum of understanding to join this large-scale refinery project.
By investing heavily in Indian refineries, the major OPEC crude oil producers Saudi Arabia and the UAE’s National Petroleum Corporation will ensure their crude oil acquisitions in the strategic and rapidly growing Asian oil market.
According to a recent outlook report released by BP, India’s oil consumption will rise from 5 million barrels/day in 2017 to 9 million barrels/day in 2040, with a compound annual growth rate of 3.1% by 2040 .