India mulls capacity increases

NEW DELHI, May 29, 2017 – India aims to ramp up its refining and gas production capacity, Minister of State for Petroleum and Natural Gas Dharmendra Pradhan said on Monday.

Speaking to local media, Pradhan said the country would add 150 million tpy in refining capacity between now and 2025, with between 50 million and 60 million tpy realised through brownfield expansion projects.

Over the coming four years, India also aims to raise gas production from around 80-90 mcm (2.83-3.18 bcf) per day at present to 120 mcm (4.24 bcf) of natural gas per day, Pradhan told the Economic Times.

The minister also commented on the government’s plans for the KG Basin, where investment is expected to reach USD 30 billion in the coming decade.

“Should we not leverage this to turn our east coast into a petroleum manufacturing hub? Should we not turn our east coast into another Houston or Aberdeen?”

Finally, Pradhan weighed in on the proposed merger of state-run oil companies, saying that the government would put down a blueprint in the coming months.

“The issue is not who will acquire whom, but what will help increase the country’s power. There will be financial realignment. We are going to bring a model, which will be more significant than a merger,” he said.

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