Petroleum and Natural Gas Minister Dharmendra Pradhan on Tuesday said that the country’s two upcoming oil refineries at Maharashtra’s west coast and Rajasthan’s Barmer will add another 120 million metric ton refining capacity in the next seven years. Saying that India has energy investment scope of $300 billion over 10 years, Dharmendra Pradhan said, India looks to add another 120 million metric ton refining capacity and that the government will soon develop gas trading platforms to cater to the rising energy demand in India.
“In the next seven years, India will be adding another 120 million metric ton refining capacity to new refineries we are planning: one at the west coast and one in Rajasthan… looking at the demand projection,” Dharmendra Pradhan said adding that the country’s biggest 9-tonne refinery at Pachpadra in Rajasthan’s Barmer will be starting soon and together with the refinery on the west coast it will add around 70 million metric ton greenfield refinery and 50 million metric ton brownfield refinery.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) together plan to set up an oil refinery on the west coast, and HPCL and government of Rajasthan’s joint venture HRRL (HPCL Refinery Limited) plan to set up in Rajasthan’s Barmer.
Earlier in April, Dharmendra Pradhan said, the country will augment its refining capacity to 600 million metric tonnes from the present 230 million metric tones to meet the growing demand. He had also stated that Prime Minister Narendra Modi wanted a 10% cut in the imports by 2022, the minister said three fourth of the demand would be met by 2040.
On rising oil prices, the Oil Minister said that the government, which has 70-80% long-term contracts and 30-20% spot purchases, will take the one with the competitive price as it is “sensitive” to the country. He also said that the government will soon develop gas trading platforms to meet the rising demand. The government will also set up a panel to look in technology and gast network and try to bring down imports by 10%.