India adds oil refining capacity

By agencies   |   Friday, 24 March 2006, 08:00 Hrs
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NEW DELHI: Despite being a net oil importer, India is all set to add more oil refining capacity to meet domestic oil demands.

Almost all oil majors in the country are planning to either expand or set up greenfield capacities in the country. While Reliance Industries is setting up the largest capacity at Jamnagar where it already operates the world’s single largest refinery, others adding refinery capacity include Essar, BPCL, MRPL and IOC among others.

The first to be commissioned will be Essar Oil’s 7million ton refinery at Vadinar by July this year. BPCL is expected to commission its 6million ton Bina refinery by the end of ’09.

Globally, this period is being referred to as the golden era for the refining industry as margins for refineries have been at an all-time high. Upcoming Indian refineries are expected to reap huge benefits due to the demand -supply gap leading to high refining margins.

BPCL’s proposed Bina refinery, involving an estimated cost of almost $2-5 billion is expected to be completed by December ’09.

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