Indian Oil Corporation Ltd.

ADNOC Gas inks $7-9 billion LNG supply deal with Indian Oil Corporation

July 20, 2023

According to ADNOC Gas, the agreement, valued in the range of $7 billion to $9 billion over its 14-year term, signifies a major step forward in the partnership between the two parties. Furthermore, the UAE company said the deal marks a milestone for them as it expands the company’s global reach.This year, ADNOC Gas also signed a three-year supply agreement with TotalEnergies Gas and Power Limited, a subsidiary of French energy giant TotalEnergies, for the export of LNG. The agreement is valued at about $1.2 billion under current market conditions.

ONGC signs pact with IndianOil to explore opportunity in petrochemicals biz.

June 15, 2023

ONGC, which produces two-thirds of the nation's oil that is refined into fuels like petrol and diesel and more than half of gas that is used to make fertilisers and turned into CNG, already has two downstream petrochemical plants through subsidiaries. As nations transition away from polluting fossil fuels to low-carbon sources of energy like hydrogen and use of electricity to power automobiles, oil companies the world over are reinventing themselves. Crude oil, which is currently refined in refineries to produce petrol and diesel, is to be directly converted into petrochemicals that form building blocks for a range of plastics, paints, detergents and tires.

The demand for petrochemicals in India is projected to grow exponentially as the per capita consumption was much lower world average. Last month, Oil Minister Hardeep Singh Puri stated at a conference that the chemical market in India is projected to grow to USD 300 billion this decade from USD 178 billion. India is expected to account for more than 10 per cent of the world's growth in petrochemicals, a press statement issued by the Press Information Bureau (PIB) on May 19 quoted him as saying. IOC already has petrochemical units at most of its refineries and has big ambitions to grow the business. ONGC's subsidiary Mangalore Refinery and Petrochemicals Ltd (MPRL) operates a petrochemical unit in Karnataka. Its other subsidiary has a unit in Gujarat.

The firm reportedly is looking at investing Rs 1 lakh crore by 2030 to expand the petrochemicals manufacturing capacity. This is a part of the government's larger plan to make India a major global petrochemical hub. ONGC's joint venture ONGC Petro additions Ltd (OPaL) and its subsidiary MRPL is to implement expansion plans that will double the production capacity to 8 million tonnes per annum by 2030. It is not known if the MoU signed now will lead to IOC joining those projects or if the agreement is for exploring new projects altogether. 

Indian Oil Corp to set up aviation fuel plant with LanzaJet in Haryana

June 14, 2023

The company is looking at an investment of about 23 billion rupees ($280.1 million), S.M. Vaidya said on the sidelines of an industry event in New Delhi.

The refiner is also running a pilot project for green fuel in association with Praj Industries in the western state of Maharashtra, Vaidya added.

Indian Oil plans green jet fuel plant to meet surging demand

May 03, 2023

Indian Oil Corp. is planning to build a Rs 1,000 crore ($122 million) sustainable aviation fuel plant as global supplies run significantly short of what’s needed by airlines to meet decarbonization goals.

The facility will have capacity to produce 88,000 tons of SAF a year and Indian Oil is seeking to partner with other oil companies on the project, said S.S.V. Ramakumar, director for research and development. Supply agreements with airlines are needed to push ahead with the investment, he added.

Indian Oil to collaborate with LanzaJet to set up green aviation fuel firm

April 14, 2023

India’s first ever green aviation fuel firm will be set up by a joint venture of Indian Oil Corporation (IOCL) and US-based clean energy technology company LanzaJet Inc, and domestic airlines, projects Projects Today.

The plant will be producing sustainable aviation fuel with alcohol-to-jet technology at IOCL’s Panipat refinery in Haryana by spending Rs 3,000 crore. It will use corn-based, cellulosic, or sugar-based ethanol to produce SAF. The plant’s initial capacity would be to produce 85,000 tonnes of fuel per year.

The IOCL will have a 50% stake in the new company, LanzaJet will have a 25% stake, and the airline companies will have the remaining 25% stake. Several airline companies can opt for a stake from two to five percent in the company and will ensure the utilization of fuel.

The Centre is taking steps to reduce emissions in the aviation sector and involving airlines in such types of new projects.

IOC to invest Rs 61,077 cr in petchem complex at Paradip, Odisha

March 22, 2023

India's top oil company IOC will invest Rs 61,077 crore in building a petrochemical complex at Paradip in Odisha - its largest ever investment at a single location - as it doubles down on its transition plan.

In a statement, Indian Oil Corporation (IOC) said its board has given "Stage-1 approval for setting up Paradip petrochemical complex at Paradip, Odisha at an estimated cost of Rs 61,077 crore." "This mega project will be the largest-ever investment of Indian Oil at a single location," it said but did not give timelines for completion of the project. This is a part of its transition plan including boosting petrochemical intensity to help protect against volatility. Petrochemical intensity refers to the percentage of crude oil that is converted directly into chemicals that are used to make plastic and other material.

Crude oil, pumped out of the ground and from below the seabed, is processed in refineries to make petrol, diesel and other fuel. It can be processed to make petrochemicals, bypassing the fuels.

IOC's petrochemical intensity - the percentage of crude oil converted into chemicals- is low at 5-6 per cent currently. The company intends to take it up to 10-12 per cent. The firm's newer refineries at Panipat in Haryana and Paradip in Odisha have the petrochemical intensity of 15-20 per cent which would be raised to 25 per cent, its chairman Shrikant Madhav Vaidya had told PTI in an interview last month.

Energy transition refers to the shift from fossil-based systems of energy production and consumption - including oil, natural gas and coal - to renewable energy sources like wind and solar, as well as lithium-ion batteries. This shift is likely to gradually cut demand for petrol and diesel and so in preparation of that IOC is doing petrochemical projects.

The company said the petrochemical complex at Paradip would include a world-scale cracker unit along with downstream process units for producing several petrochemical products including polypropylene (PP), high density polyethylene (HDPE), linear low-density polyethylene (LLDPE) and poly vinyl chloride (PVC) - these being building blocks of different grades of plastics. It shall also facilitate production of niche chemicals and petrochemicals like phenol and isopropyl alcohol.

Talking of the development, Vaidya said, "This mega project is aligned with Prime Minister Narendra Modi's vision of Purvodaya that is sure to accelerate the development trajectory and fuel prosperity in Eastern India. This cutting-edge, state-of-the-art petrochemical complex will undoubtedly be transformative in its impact, significantly advancing the Aatmanirbhar Bharat initiative." "This mega project shall significantly improve the petrochemical intensity index of IndianOil. It shall be a growth driver in making the company a major player in the petrochemical industry, while strengthening India's self-reliance in the petrochemical sector," he said.

The project, the statement said, will catalyze the growth of PCPIR and Plastic Park at Paradip. "On commissioning of this project, domestically available Petrochemicals are expected to provide feed and vitalise industrial growth in key downstream industries like plastic, pharma, agrochemical, personal care, paints etc. It is also expected to create employment opportunities in eastern India, especially Odisha," it added.

India’s Odisha approves incentives for IOC cracker

March 21, 2023

India's Odisha state on 9 March approved financing for state-controlled refiner IOC's 580bn rupee ($7bn) dual-feed Paradip cracker project. The funds will give it a stake in the plant, proportional to the amount invested. The complex will produce ethylene, propylene, polyvinyl chloride and phenol.

IOC for developing Haldia refinery into petrochemicals complex

March 08, 2023

Oil marketing PSU Indian Oil Corporation (IOC) is keen to develop its existing refinery in West Bengal's Haldia into a petrochemicals complex for “sustaining operations profitably”, a company official said on Wednesday.

Running a standalone refinery is “not sustainable in terms of profitability” for which it has to be supplemented by a petrochemicals complex, he said. "We want to set up a petrochemicals complex contiguous to the Haldia refinery whose current capacity is 8.5 million tonnes per annum (mtpa)", the company official said.

IOC has sought land from Hindustan Fertilizer Corporation (HFC), whose factory is lying defunct, for developing the petrochemicals complex, he said.

"We have sought 175 acres of land from HFC. It is near the refinery and it has been given on lease by Haldia Dock Complex (HDC) to the ministry of chemicals and fertilisers. We are seeking the land for the petrochemicals project", the IOC official said.

Drawing an analogy, the official said the Paradip refinery of IOC has been turned into a petroleum, chemicals, and petrochemicals investment region (PCPIR).

"The Paradip refinery has a capacity of 15 mtpa and has numerous petrochemicals units around it. This gives better profitability margins to the Paradip operations. This is the same thing which IOC wants to replicate at Haldia", he added.

According to the official, the capacity of a petrochemical project depends on the quantity of feedstock, which is naphtha, coming from the refinery. He said the land is also required for safety purposes as the refinery complex at Haldia has become congested.

To a query, the IOC official said that “discussions have been held with HDC several times but nothing is fructified so far”. An official of HDC said "the land could only be used for port-related usage like facilitating export-import cargo. We have already stated this to the concerned authorities at the Centre".

In a recent visit of Rameswar Teli, the minister of state for petroleum and natural gas, at the Haldia refinery, he said IOC had apprised him of the issue regarding the HFC land.

While the Paradip refinery complex is built on 5,000 acres, the Haldia unit is located on 640 acres, the IOC official added.

Indian Oil Corporation Invests Rs 2 Lakh Crore in Net-Zero Emissions Plan, Focuses on Green Hydrogen

February 27, 2023

India’s largest oil company, Indian Oil Corporation (IOC), is planning to establish green hydrogen plants at all its refineries in a Rs 2 lakh crore green transition plan to reach net-zero emissions from its operations by 2046, said Shrikant Madhav Vaidya, Chairman, IOC.

The firm aims to expand its refining capacity from 81.2 million tonnes to 106.7 million tonnes annually as it forecasts India’s oil demand to rise from 5.1 million barrels per day to 7-7.2 million bpd by 2030 and 9 million bpd by 2040. While oil will continue to be a significant fuel for the next few years, IOC is preparing for a transition involving green hydrogen, biofuels, electric vehicles (EVs), and alternative fuels.

Hydrogen, the cleanest fuel, is being touted as the fuel of the future, but its relatively high cost compared to alternative fuels currently limits its usage in industries. Refineries use hydrogen to lower the sulfur content of diesel fuel, and currently, it is produced using fossil fuels such as natural gas. IOC plans to use renewable sources such as solar energy to split water and produce green hydrogen.

IOC aims to achieve net-zero emissions by investing over Rs 2 lakh crore and is planning to produce 50% of its overall hydrogen output as green hydrogen within 5-10 years and 100% by 2040. Additionally, the company plans to increase its renewable energy capacity to 12 GW from the current 256 MW and have EV charging facilities at 10,000 fuel stations within two years.

IOC is also remodelling its business with a focus on petrochemicals to hedge volatility in the fuel business and make itself future-ready by turning petrol pumps into energy outlets that offer EV charging points and battery swapping options. The petrochemical intensity, the percentage of crude oil converted into chemicals, is currently low at 5-6%, which IOC intends to increase to 10-12%. The newer refineries at Panipat and Paradip have a petrochemical intensity of 15-20%, which IOC plans to raise to 25%.

India's first SPM Facility at Indian Oil-Vadinar berths the 6,000th Oil Tanker

October 17, 2022

India's first unloading Single Point Mooring (SPM) facility, commissioned by Indian Oil in 1978 at Vadinar in Dev Bhumi Dwarka district of Gujarat, achieved a significant milestone with the berthing of the 6,000th Oil tanker- MT Yio, a Liberian VLCC (Very Large Crude Carrier) carrying Basrah Crude Oil from Iraq. Mr S M Vaidya, Chairman, Indian Oil and Mr D S Nanaware, Director (Pipelines), Indian Oil, welcomed the crew of MT Yio to celebrate the momentous occasion.

Complimenting the Team Vadinar of Indian Oil, Mr S M Vaidya said, "Economic and social growth relies on energy and given our dependence on foreign crude, unloading crude supplies from large crude-carrying vessels deep into the sea safely and reliably is vital to keep our refineries running. I must laud the remarkable contribution of IOCians at Vadinar who work under the most challenging circumstances to keep the nation fuelled while setting new benchmarks of operational excellence. The 3 lakh kilo litres of crude oil that MT Yio is carrying is adequate to meet about 40% of the daily fuel requirement of our entire nation".

Indian Oil currently operates two SPM terminals at Vadinar, in the south of the Gulf of Kutch, for unloading of crude oil brought in tankers for transportation to shore tanks through pipelines, of which around 14 km is subsea. Subsequently, the crude is transported through cross-country pipelines to Indian Oil's mega-refineries at Vadodara, Mathura and Panipat. With the unloading of this crude parcel, Indian Oil Vadinar Terminal has crossed a cumulative receipt of 735 MMT.

Dr. Uttiya Bhattacharyya

Executive Director (Corporate Communications)

Indian Oil Corporation Limited

Source: IOCL Website