IOC, BPCL, HPCL sign agreement to set up $40 billion refinery in Maharashtra

On June 14, 2017, public sector oil firms IOC, BPCL and HPCL signed an agreement to jointly set up the world’s largest refinery and petrochemical complex at Ratnagiri district of Maharashtra. The total cost for setting up this refinery is estimated to be $40 billion.

More Details about $40 billion refinery in Maharashtra:

Indian Oil Corp (IOC) will be the lead partner with 50% stake while Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) will take 25% stake

  • Union Oil Minister Dharmendra Pradhan said this refinery is being set up keeping in mind the future fuel demand and the export potential of the country.
  • The entire refinery will include three crude units of 20 million tonnes each.IOC, BPCL, HPCL sign agreement to set up $40 billion refinery in Maharashtra
  • After land acquisition and all clearances, it will take five-six years for completing this project.
  • The refinery will produce petrol, diesel, LPG, ATF and feedstock for making petrochemical that are basic building blocks in plastic, chemical and textile industries.
  • It will have an accompanying mega petrochemical plant that will include an aromatic complex, naphtha cracker and polymer complex.

Oil Demand and Refining Capacity in India:

According to the International Energy Agency (EA), oil demand in India is expected to reach 458 million tonnes by year 2040.

  • India has a refining capacity of 232.066 million tonnes, which exceeded the demand of 194.2 million tonnes in 2016-17 fiscal.
  • Refineries of IOC, BPCL and HPCL have combined refining capacity of nearly 139 million tonnes.
  • Currently IOC’s 15 million tonnes unit at Paradip in Odisha is the biggest refinery among all public sector oil firms. Reliance Industries refinery in Jamnagar, Gujarat currently holds the distinction of biggest refinery in India.