India’s IOC to raise refining capacity

NEW DELHI, July 4, 2016 – Indian Oil Corporation (IOC) is looking to increase its refining capacity to reach more than 2 million bpd by 2022, the company’s director for refineries told the Press Trust India agency on Monday. IOC has earmarked more than USD 6 billion for the expansion.

“All the projections clearly show that the demand will grow, and unless we start investing now, we will lag,” Sanjiv Singh said. The company currently has a capacity to process some 1.6 million bopd. By 2022, IOC aims to reach 2.1 million bpd.

The company sees fuel demand in India growing at a compound annual rate of 3.5-4%, a projection that is mirrored by the International Energy Agency. The Energy Information Agency projects a growth rate of 3%. Fuel demand at present stands at 3.7 million bpd, but is forecast to increase to between 5.9 million and 7 million bpd by 2030.

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