Big news for Iranian-Indian refinery project: A refinery in Nagapattinam, Eastern India, co-owned and operated by an Indian Oil subsidiary and Iranian Naftiran, shall be overhauled to produce a variety of high grade fuels.
Chennai/India – Chennai Petroleum plans to invest $5.5 billion to gradually increase production capacity and product portfolio of its smallest refinery: According to Reuters, the company plans to raise the production capacity of its two sites in the Indian states of Tamil Nadu in steps first to 120,000 and 180,000 barrels-per-day before a second phase boosts outputs to 300,000 barrels-per-day. Naftiran Intertrade, an subsidiary of Iran’s National Oil Company NIOC, holds a 15.4 percent stake in the sites.
Indian Oil chairman B. Ashok recently stated that this overhaul and expansion shall help the sites to produce cleaner, higher grade fuels, which are in high demand in India. According to a recent IEA report, the country’s demand for crude products could rise to 329 million tons (from 183 million tons in 2015) by 2030. Furthermore, the Indian government plans to pass regulations similar to the Euro IV emission standards (by 2017) and later Euro VI (2020), emphasizing the need for cleaner transport fuels.
Indian oil had previously announced plans to spend a total of US $ 7.3 billion by 2020 to increase its refining capacities by about 30 percent. As a first step, the refinery at Panipat, Northern India, could be expanded to 500,000 barrels-per-day.