Indian Oil Corporation Limited’s Gujarat refinery in Vadodara is expected to achieve its expanded 18 million tons per annum (MTPA) crude-processing capacity by the end of FY27. Although the refinery can technically process 18 MTPA of crude, it has not yet reached the full targeted level because several downstream units required to convert crude into finished fuels, lube base stocks and petrochemicals are still under development.
Brownfield Expansion Nears Completion
The refinery currently operates between its earlier 13.7 MTPA capacity and the expanded 18 MTPA level, according to Biplob Biswas, Executive Director and Refinery Head, Indian Oil. “We can process 18 mtpa of crude even today. But every refinery has primary processing of crude and all the products we obtain from our crude unit go for secondary processing. We will touch 18 mtpa once we complete the secondary processing by the end of this fiscal,” Biswas said. The capacity ramp-up forms part of Indian Oil’s ₹17,825-crore Petrochemicals and Lube Integration Project (LuPech), which is now entering its final phase.
Major Units Commissioned
IOCL began the refinery expansion around five years ago. Since the project involves a brownfield expansion, the company has carried out much of the work within existing operating units. According to Biswas, two major refinery revamps planned under the expansion were successfully completed and commissioned last year. In addition, Indian Oil has commissioned the first two grassroots units this year. The company will now focus on commissioning the remaining units, with the propylene unit expected to be the final major facility to come online.
Polypropylene Unit to Add 500,000 Tons Capacity
The planned polypropylene unit will have a production capacity of 500,000 tons per year and is estimated to cost around ₹1,000 crore. The unit will use propylene generated from soft gases as feedstock. Its addition will strengthen Indian Oil’s petrochemical integration and domestic polymer production capabilities. The investment comes as India continues to import significant quantities of polypropylene despite having substantial installed domestic production capacity.
Crude Sourcing Becomes More Diverse
IOCL is also diversifying the crude sources for its Gujarat refinery. Around 30% of the refinery’s crude requirement currently comes from domestic sources, according to Biswas. The company has also expanded its international sourcing portfolio. In recent years, the refinery has processed crude cargoes from the US and Venezuela, alongside supplies from other international sources. “We are gradually diversifying. We have taken some cargoes from the US in the past. Our portfolio remains very diverse. We have also got a couple of cargoes from Venezuela about three months ago,” Biswas said.
Gujarat Refinery Moves Towards Full Capacity
With the commissioning of the remaining downstream facilities, Indian Oil expects the Gujarat refinery to fully utilise its 18 MTPA crude-processing capacity by FY27-end. As reported by thehindubusinessline.com, the completion of the LuPech project will also strengthen the refinery’s integration across fuels, lubricants and petrochemicals, supporting Indian Oil’s broader downstream growth strategy.
