India Plans to Raise Refining Capacity by 77% by 2030
Refiners in India, the world’s third-biggest oil consumer and importer, have drawn up plans to raise their capacity by 77% to about 8.8 MMbpd by 2030 to meet the country’s rising fuel demand. India is emerging as one of the key global drivers for refined fuels consumption as its economic expansion and rising industrial activity yields infrastructure improvements and increased energy access for commercial and retail consumers. If current patterns of use continue, India’s fuel demand could rise to as much as 335 million tonnes by 2030, and 472 million tonnes by 2040, from about 194 million tonnes last year, the oil ministry’s report says. The report also forecast a growth of 5 percent or more each year in India’s gasoline, diesel and jet fuel demand to 2030. The report recommended the refiners set up petrochemical projects and cut production of petcoke and fuel oil. Source: Hydrocarbon Processing, 2/9/2018.
TCGR Note: While there is no doubt India’s growth in transport fuels demand could grow 5% pa through 2040 (which is an important consideration for our members), historically though, the refining infrastructure growth has been slower to date because of lower refining investment, particularly from international partners.