India is set to add over 6,50,000 barrels per day (bpd) of refining capacity by 2027 through multiple greenfield and brownfield expansions, according to a report by global energy intelligence firm Kpler. This figure excludes the capacity addition from the Vizag project. However, Kpler emphasized that the scale and complexity of these mega projects demand close monitoring, given the global trend of delays in commissioning large-scale refineries.
Refining Capacity to Touch 5.93 Million bpd
India aims to increase its total refining capacity from 5.28 million bpd in March 2025 to 5.93 million bpd by end-2027. Kpler cautioned that although timelines appear optimistic, the history of delays in international projects like Al Zour (Kuwait), Jizan (Saudi Arabia), Dos Bocas (Mexico), and Dangote (Nigeria) suggests a need for tempered expectations. India aims to raise its annual refinery capacity from 258.1 million tonnes (mtpa) to 309.5 mtpa by 2028, aligning with its growing energy demand.
Barmer Refinery Progressing
HPCL Rajasthan Refinery Ltd (HRRL) is advancing the Barmer Refinery but facing notable delays. HRRL has designed the 1,80,000 bpd facility to be one of India’s most petrochemically integrated, with 25% petrochemical intensity. The company expects to begin pre-commissioning of the crude distillation unit (CDU) by Q1 2026 and aims to commission it by H2 2026. The refinery will process 17% domestic crude from the Mangala oilfield and import 83% crude via Gujarat’s Mundra terminal. While teams have mechanically completed 85% of the transportation fuel units, they have fallen behind schedule on the critical sulfur recovery block.
Numaligarh Expansion Sees Schedule Slippage
Numaligarh Refinery Limited (NRL) is expanding its Assam project threefold—from 60,000 bpd to 180,000 bpd. Kpler reported that NRL initially planned to complete the project by October 2024 but now expects mechanical completion by December 2025. The project’s technical complexity has caused the delay.
IOCL Pushes Ahead with Multiple Expansions
Indian Oil Corporation Ltd (IOCL) is driving capacity expansions at several key refineries:
- Panipat (Haryana): Increasing from 300,000 bpd to 500,000 bpd. Currently 55–60% mechanically complete, with first oil expected in Q3 2026.
- Vadodara (Gujarat): Expanding from 274,000 bpd to 360,000 bpd. The project is 40% complete, with first oil targeted for Q1 2027.
- Barauni (Bihar): Scaling from 120,000 bpd to 180,000 bpd, with mechanical completion expected by Q4 2026.
Monitoring Critical Amid Rapid Growth
India’s refinery capacity expansion aligns with its energy security and economic growth goals. Kpler urged continued vigilance in tracking project execution timelines. As reported by thehindubusinessline.com, experience from other global mega projects highlights key lessons. These underscore the importance of project oversight and risk mitigation. India plans to significantly scale up its downstream capacity by 2027.
