Oil Refinery In India
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Oil Refinery in India
An Industry Overview
Table of Contents
INTRODUCTION
GLOBAL VIEW ON REFINING
INDUSTRY OVERVIEW
REGULATORY FRAMEWORK
INDUSTRY ANALYSIS
FUTURE OUTLOOK
REFERENCES
“THE ONCE RELIABLE CONSTANTS HAVE BECOME GALLOPING VARIABLES”
-ALVIN TOFFLER
India the worlds seventh largest country and the second most populace nation has been a destination of unrealized potential. In the recent past it has seen as stir of economic activity changing the prim face of the nation. The country has had breath taking reforms bringing in foreign direct investments and foreign institutional investments into the country at a brisk pace. Today India is one of the most exciting emerging markets in the world to be in. A new economic freedom is sweeping every industry in the nation. And one the industries to see a plethora of changes is the “Oil Refining Industry”. This industry is of paramount importance as oil is of the key energy source on which other industries are dependent on.
What is Oil Refining?
“Oil refining is an industrial process where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, and asphalt base, heating oil, kerosene, and liquefied petroleum gas.”
Its black& its not gold!
Having to stare at 15% of the world population with only 0.5% of world oil reserves has been giving the Indian ministry sleepless nights. Indias consumption is about 5.9% compounded annually. This sector had long been controlled by the public sector companies and is seeing the savor of private players and competitive growth. New discoveries in the Krishna-Godavari basin and in the Mahanadi Basin are already attracting a lot of foreign attention. Global deals in the oil and gas sector stood at a whopping $291 billion. Some of the major developments seen during the year are BPCLs takeover of KRL, Cairns pre-IPO placement and ONGC-Cairns Rajasthan oilfield. Considering the international attention these companies are receiving, it seems that oil is on its way of divorcing its Ðunsustainable burden status soon.
Global View on Refining
There is global shortage in the refining industry. The supply has not kept pace with the demand. Just for example USA has not had a new refinery since 1976 because of environmental concerns. It is estimated that the worlds energy needs will be 50% higher in 2030, with 55-60% of demand from conventional oil and gas. Worldwide, refining capacity has increased by less than 2mbpd while consumption has risen by almost 4mbpd in the past couple of years.
Global Refining Capacity 2007
Industry Overview
Indian Oil Industry Structure
India has observed a tremendous growth in this sector, in 1947 after independence India had just one oil refinery at Digboi with a capacity of 0.27 MMTPA and as of 2007 India has 19 active refineries. 17 of which were in the public sector.
Refining Capacity of India 2007
Sl. No.
REFINERY
MMTPA
PUBLIC SECTOR
Indian Oil Corporation Limited, Digboi
0.65
Indian Oil Corporation Limited, Guwahati
Indian Oil Corporation Limited, Koyali
13.7
Indian Oil Corporation Limited, Barauni
Indian Oil Corporation Limited, Haldia
Indian Oil Corporation Limited, Mathura
Indian Oil Corporation Limited, Panipat
Hindustan Petroleum Corporation Limited, Mumbai
Hindustan Petroleum Corporation Limited, Visakh
Bharat Petroleum Corporation Limited, Mumbai
Kochi Refineries Limited, Kochi
Chennai Petroleum Corporation Limited, Chennai
Chennai Petroleum Corporation Limited, Nagapatinam
Bongaigaon Refinery & Petrochemicals Limited, Bongaigaon
2.35
Numaligarh Refinery Limited, Numaligarh
Oil & Natural Gas Corporation Limited, Tatipaka
0.078
Mangalore Refinery & Petrochemicals Limited, Mangalore
9.69
TOTAL PUBLIC SECTOR
105.468
PRIVATE SECTOR
Reliance Petroleum Limited, Jamnagar
Essar Oil Limited, Jamnagar
10.5
TOTAL PRIVATE SECTOR
43.5
GRAND TOTAL
148.968
Source Indian Ministry of Petroleum and Natural Gas
India as of 2007 had has oil-refining capacity of 2.5 million barrels per day and its consumption is about 2.2 million barrels per day thus it has a surplus of capacity as on date.
Product
Diesel
35.9%
Petrol
7.7%
9.2%
Kerosene
8.4%
FO/LSHS
11.4%
Naphtha
10.9%
Bitumen, ATF, Lubes, Solvents
16.5%
111.9
100%
Key Indian Players