A new refining capacity addition cycle begins for India's petrochem sector

The dedication of the HPCL Rajasthan Refinery Limited’s (HRRL) integrated refinery-cum-petrochemical complex at Pachpadra in Rajasthan’s Balotra district by Prime Minister Narendra Modi on July 7 has kick-started a new wave of refining capacity expansion in India and marks a defining moment in the country’s energy security ambitions. It is also the first greenfield refinery to be commissioned in India in over a decade.

Conceived as India’s first greenfield integrated refinery-cum-petrochemical complex, the 9 million metric tonnes per annum (MMTPA) facility has been developed as a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan. Its commissioning further strengthens India’s position as the world’s fourth-largest refining nation, with a total installed refining capacity of 258.1 MMTPA spread across 23 operational refineries.

At a time when many developed economies are scaling down fossil fuel processing as renewable energy and electric vehicles gather momentum, India is charting a markedly different course. The country plans to expand its refining capacity from the current 258 MMTPA to 300-310 MMTPA by 2030, with a longer-term vision of reaching around 450 MMTPA.

While dedicating the HRRL refinery to the nation, Prime Minister Modi underscored India’s commitment to continue building new crude oil refineries to strengthen supply chain security. He pointed out that while no new refinery has been built in the United States in nearly five decades and refining capacity in Europe has steadily declined, India is investing aggressively in expanding its refining infrastructure to meet future energy demand.

Public sector refiners currently account for around 174 MMTPA of the country’s refining capacity through Indian Oil Corporation’s 10 refineries, Bharat Petroleum Corporation Limited’s three refineries, HPCL’s two refineries, Mangalore Refinery and Petrochemicals Limited (MRPL), and Numaligarh Refinery Limited (NRL). In the private sector, Reliance Industries operates the Jamnagar refinery complex in Gujarat—the world’s largest single-site refining complex—with a combined crude processing capacity of around 1.4 million barrels per day, equivalent to nearly 70 MMTPA. Nayara Energy’s Vadinar refinery in Gujarat is India’s second-largest single-site refinery, with a capacity of 20 MMTPA.

Driven by the country’s steadily rising demand for petrol, diesel and aviation turbine fuel, public sector oil marketing companies are embarking on another round of capacity expansion. Including the newly commissioned HRRL refinery, nearly 32 MMTPA of additional refining capacity is expected to come on stream in the near term.

The biggest expansion is being undertaken by Indian Oil Corporation, which is adding 17.3 MMTPA across its Panipat, Gujarat, Barauni and Paradip refineries. Numaligarh Refinery is expanding its capacity in phases from 3 MMTPA to 9 MMTPA in Assam. Bharat Petroleum plans to expand its Bina refinery to around 11-12 MMTPA, while HPCL-Mittal Energy Limited (HMEL), the joint venture between HPCL and Mittal Energy, is also increasing capacity by 0.5 MMTPA.