Indian Oil Corporation (IOC) plans to increase its natural gas sales by 1.5 times by 2030 and is at an advanced stage of forming a partnership to jointly acquire and operate a fleet of vessels, as India’s largest fuel retailer broadens its energy portfolio while strengthening supply-chain resilience after disruptions through the Strait of Hormuz.
IOC’s natural gas business recorded its highest-ever sales of 7.09 million tonnes in FY26, while its city gas distribution business turned Ebitda-positive. The company plans to expand across the global gas value chain to meet its 2030 target.
At the same time, IndianOil is working with a leading Indian shipping company and other oil marketing companies on jointly acquiring and operating vessels. The initiative, now at an advanced stage, is aimed at giving the company greater strategic control over energy logistics and improving supply reliability.
The move comes after the West Asia conflict sharply exposed India’s dependence on the Hormuz corridor. India imports more than 88% of its crude requirement, while around 45% of crude imports and nearly 90% of LPG imports are linked to the strategic waterway.
“For Indian Oil, the priority during this unprecedented crisis has remained crystal clear—to maintain continuity of energy supplies despite constrained sourcing options and volatile international markets,” Chairman AS Sahney said at the firm’s 67th annual general meeting (AGM).
IOC diversified crude sourcing, realigned refinery operations and secured alternative supplies during the disruption. Despite a significant shift away from West Asian crude grades, its refineries operated at above 100% utilisation, while LPG production was ramped up by nearly 30% in a short period. The gas business also secured additional LNG from diversified geographies.
The company is simultaneously expanding its refining footprint. Capacity expansions at Panipat from 15 to 25 MMTPA, Gujarat from 13.7 to 18 MMTPA and Barauni from 6 to 9 MMTPA will raise group refining capacity from 80.75 MMTPA to around 98 MMTPA. IOC expects to contribute more than 40% of India’s incremental refining capacity as the country moves towards 300 MMTPA.
Operational momentum continued in the June quarter, when refineries processed a record 19.17 MMT of crude at 109.4% capacity utilisation, pipelines handled a quarterly record 28.55 MMT, and IOC’s domestic petroleum-product market share rose to 43.1%.
Beyond gas and refining, IOC aims to raise upstream integration above 10% by 2031. Commercial gas production has started from its Jharkhand CBM block, first oil has flowed from Jyoti-1 and Jyoti-2 in Gujarat, while the company has made two oil discoveries at Shilaif and Habshan in Abu Dhabi.