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.

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.