Indian Oil Corp (IOC) is planning to invest nearly $13.5bn (INR1,000bn) in the next four to five years to boost its refining capacity by more than 25 million metric tonne per annum.

The investment, which would bring IOC’s refining capacity to 106.7 million tonnes, is a part of the firm’s plan to meet the anticipated fuel demand growth in near future, reported Press Trust of India (PTI).

During the company’s annual meeting of shareholders, IOC chairman Shrikant Madhav Vaidya said: “Forecasts by various agencies see Indian fuel demand climbing to 400-450 million tonne by 2040 from the present 250 million tonne. This offers enough legroom for all forms of energy to co-exist.”

“In fact, to cater to that demand surge, we are aggressively rolling out new projects. These translate into refining capacity expansion of over 25 million metric tonne per annum, including (subsidiary) CPCL, and an investment commitment of close to Rs 1 lakh crore over the next 4 to 5 years.”

IOC plans to increase the refining capacity of its Koyali refinery in the Indian state Gujarat from the current 13.7 million tonnes to 18 million tonnes, according to the news agency.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Moreover, refining capacity of the firm’s Panipat refinery in Haryana is planned to be increased from current 15 million tonnes to 25 million tonnes.

The oil company will also undertake expansion programmes at the Guwahati and Barauni refineries as well build new plant at the subsidiary, Chennai Petroleum (CPCL), reported PTI.

Furthermore, IOC and its joint venture partner Malaysia’s state-owned oil and gas firm Petronas are planning to build liquefied natural gas (LNG) terminals.

Expanding the IndianOil Petronas JV, the two firms will also work on CNG stations, CGD projects, CBG business and retailing of transportation fuels.