Indian Oil Corporation Limited (IOCL) is set to complete the expansion of its refineries in Panipat, Gujarat, and Barauni by December 2025.
The expansions, initially slated for earlier completion, faced delays due to the COVID-19 pandemic and the ongoing crisis in Ukraine.
Expansion Projects
The Barauni refinery in Bihar is undergoing a capacity upgrade from six million tons per annum (MMTPA) to 9 MMTPA.
This expansion, estimated at 160 billion rupees ($1.9 billion), has seen a 10% cost overrun.
Similarly, IOC has increased the budget for Panipat’s refinery expansion, raising costs from the initial 330 billion rupees to 362.25 billion rupees.
Increased Capacity
Indian Oil Corporation Limited is expanding its Panipat refinery capacity from fifteen MMTPA to twenty-five MMTPA.
The Gujarat refinery, meanwhile, is increasing from 13.7 MMTPA to eighteen MMTPA, with plans for integration into lube and petrochemical production systems.
The expansions align with the country’s broader goal to boost its refinery capacity to 450 million tons per annum (MTPA), up from the current 249 MTPA, or approximately five million barrels per day.
Unit Shutdowns
To support these upgrades, IOCL plans to temporarily shut down the hydrocracker and certain secondary units at the Gujarat refinery by the fiscal year-end.
Additionally, the gasoline-making unit at the Barauni refinery will undergo revamping. This will take place in the first to second quarters of the upcoming fiscal year.
Revised Timelines
Initially, they expected to complete the Gujarat refinery expansion by mid-2024, but recent setbacks have pushed this date back.
As reported by marketscreener.com, similarly, Panipat’s expansion has also seen delays of over a year. Now, all three refinery upgrades are set to converge for completion by the end of 2025.
