IOC to set up Rs. 17,825-crore petrochemical unit in Gujarat refinery
Indian Oil Corporation (IOC) will invest Rs. 17,825-crore in its Gujarat refinery to boost its capacity to produce petrochemicals.
The Development is in line with the IOC’s strategy to facilitate petrochemical integration into its refi nery expansion plans, as this group of products is touted to be the biggest driver of oil demand in the long term.
The Gujarat refi nery upgrade is expected to be completed in 42 months. “The intention is to increase petrochemical intensity to insulate ourselves from the vagaries of auto fuel margin cracks and guarantee better refi ning margins,” IOC chairman Mr. S.M. Vaidya said on September 21, while addressing the media after the company’s 61st Annual General Meeting. IOC’s net profi t fell 47% annually to Rs. 1,910.8-crore in the quarter ended June 30, mainly due to inventory losses stemming from fl uctuations in global oil prices. The petrochemicals business is expected to act as a cushion to its low-margin refi nery business. Mr. Vaidya added that though the company was revising the long-term demand scenario after the coronavirus crisis, it was on track to spend the Rs. 26,233-crore Capex earmarked for FY21. The company’s board has also recently approved the implementation of an integrated para-xylene (PX) and purifi ed terephthalic acid (PTA) complex project at its Paradip refi nery in Odisha, which would require an estimated investment of Rs. 13,805-crore. The project is expected to be completed by 2024. In the wake of a shift in energy usage patterns to address climate change and global warming, IOC has been investing across the energy value chain in diverse areas such as renewables, electric mobility, bio-fuels and hydrogen. It has set up EV-charging and battery-swapping facilities in 76 and 11 retail outlets, respectively. The company also intends to set up a metal-air, battery-manufacturing facility and develop fuel cells and indigenous hydrogen storage solutions.
The Development is in line with the IOC’s strategy to facilitate petrochemical integration into its refi nery expansion plans, as this group of products is touted to be the biggest driver of oil demand in the long term.
The Gujarat refi nery upgrade is expected to be completed in 42 months. “The intention is to increase petrochemical intensity to insulate ourselves from the vagaries of auto fuel margin cracks and guarantee better refi ning margins,” IOC chairman Mr. S.M. Vaidya said on September 21, while addressing the media after the company’s 61st Annual General Meeting. IOC’s net profi t fell 47% annually to Rs. 1,910.8-crore in the quarter ended June 30, mainly due to inventory losses stemming from fl uctuations in global oil prices. The petrochemicals business is expected to act as a cushion to its low-margin refi nery business. Mr. Vaidya added that though the company was revising the long-term demand scenario after the coronavirus crisis, it was on track to spend the Rs. 26,233-crore Capex earmarked for FY21. The company’s board has also recently approved the implementation of an integrated para-xylene (PX) and purifi ed terephthalic acid (PTA) complex project at its Paradip refi nery in Odisha, which would require an estimated investment of Rs. 13,805-crore. The project is expected to be completed by 2024. In the wake of a shift in energy usage patterns to address climate change and global warming, IOC has been investing across the energy value chain in diverse areas such as renewables, electric mobility, bio-fuels and hydrogen. It has set up EV-charging and battery-swapping facilities in 76 and 11 retail outlets, respectively. The company also intends to set up a metal-air, battery-manufacturing facility and develop fuel cells and indigenous hydrogen storage solutions.
No comments:
Post a Comment