Mobile-Menu

India's Petrochemical Industry

The Upstream-Downstream Imbalance: Insights in India's Hydrocarbon Economy

Page: 4/4

Related Vendors

Glatt Ingenieurtechnik GmbH
EDL Anlagenbau Gesellschaft mbH
Pörner Ingenieurgesellschaft mbH

Further, the upstream national oil companies are focusing on improved oil recovery (IOR) and enhanced oil recovery (EOR) techniques to improve the recovery factor and maintain production levels. During 2013–14, ONGC’s IOR/EOR projects contributed an incremental oil gain of 7.52 MMT. Cumulative incremental gain till 2013–14 has been 87.46 MMT since 2000 as per the said report.

Ta b l e 1 : D e t a i l s o f I n d i a ’ s O i l R e s e r v e s a s o n 31 .03.2014
Ta b l e 1 : D e t a i l s o f I n d i a ’ s O i l R e s e r v e s a s o n 31 .03.2014
(Source: Ministry of Petroleum & Natural Gas, GoI)

Downstream Boom Ahead? Projects in the Pipeline

The downstream requirement of crude is expected to increase further in the near future due to refining capacity additions from ongoing and planned projects—both grassroots refinery projects as well as capacity expansion projects.

Ta b l e 2 : O v e r s e a s P r o d u c i n g A s s e t s o f O V L
Ta b l e 2 : O v e r s e a s P r o d u c i n g A s s e t s o f O V L
(Source: ONGC Annual Report for 2013–14)

Two ongoing grassroots refinery projects will add a total of 21 million metric ton per annum (MMTPA) to India’s refining capacity. These include IOCL’s 15 MMTPA refinery project at Paradeep, Odisha; and Nagarjuna Oil Corporation Ltd’s 6 MMTPA refinery project at Cuddalore, Tamil Nadu. HPCL Rajasthan Refinery Ltd’s planned grassroots project at Barmer, Rajasthan is likely to add another 9.0 MMTPA to India’s refining capacity. Similarly, expansion projects are expected to add significant refining capacity in the near future.

As per the Indian Petroleum and Natural Gas Statistics 2013–14 published by the Economics and Statistics Division of Ministry of Petroleum and Natural Gas, Government of India, the total rerefining capacity of India is estimated to increase to 307.4 MMT in 2016–17. As the overall capacity utilization rate of India has been above 100 per cent in the recent years, the crude demand by India’s downstream sector is likely to be approximately 325 MMT in 2016– 17. According to the same source, India’s total oil production is likely to increase only marginally to 41.2 MMT in 2016–17. This means that the demand-supply gap within India’s petroleum industry is likely to worsen further by 2016–17.

* The author is General Manager and Head of Department – Process at Simon India

(ID:43526060)

Related content