The Indian Petroleum Ministry said that it is not changing the initially agreed size and scope of the soon-to-be-constructed refining complex on the western coast of India. The Abu Dhabi National Oil Company (ADNOC) and Saudi Arabian Oil Company, Aramco, plan to hold stakes in the refinery.
The greenfield integrated refinery and petrochemicals complex is to have a capacity of 1.2 million barrels per day. It will be jointly developed by Aramco, ADNOC and domestic refiners Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum. Preliminary estimations show that the complex could cost $70 billion.
The project is being planned in the Maharashtra state, and it is currently in its land acquisition phase. Upon completion, it will be supplied with 600,000 barrels per day of Saudi Arabian crude. It is part of the numerous investment pledges made by the Crown Prince of Saudi Arabia, Prince Mohammed bin Salman, during his visit to the UAE capital in 2019.
ADNOC and Aramco will have a 50% stake in the Ratnagiri project, which is expected to have an 18 million tonnes chemical capacity per year. Aramco also plans to acquire the world’s current largest refinery at Jamnagar in India’s western Gujarat state as a means to secure demand for its crude.
The planned downstream investment is a sign of majors and state-backed players’ interest in the refining sector of India as it is one of the few places with a growing demand for crude and they look to supply crude to refinery assets in the country.
Speaking to an Energy Intelligence Panel on Tuesday, 14th October 2020, the Petroleum Minister of India, Dharmendra Pradhan said, “We’re not going to rethink on the size of the refinery or the partners of the refinery.”
“We’re confident that at a rescheduled time, we’re very much keen to develop the Ratnagiri refinery.”
“India has refining capacity of around 250 million metric tonnes. In next decade we want to add another minimum 100 MMT. By 2030, we must have 350 MMT refining capacity [demand].”
According to the Minister, the Indian government will divest from its energy sector as “the government has no business to be in the business.”
“India is very aggressive on solar energy. We have come down to a few cents today [tariffs]. Blending of solar energy with gas is a more hybrid model.”
/strong%20and%20Saudi%20Arabian%20Oil%20Company,%20strongAramco/strong,%20plan%20to%20hold%20stakes%20in%20the%20refinery.The%20greenfield%20integrated%20refinery%20and%20petrochemicals%20complex%20is%20to%20have%20a%20capacity%20of%201.2%20million%20barrels%20per%20day.%20It%20will%20be%20jointly%20developed%20by%20Aramco,%20ADNOC%20and%20domestic%20refiners%20Indian%20Oil%20Corporation,%20Bharat%20Petroleum,%20and%20Hindustan%20Petroleum.%20Preliminary%20estimations%20show%20that%20the%20complex%20could%20cost%20$70%20billion.The%20project%20is%20being%20planned%20in%20the%20Maharashtra%20state,%20and%20it%20is%20currently%20in%20its%20land%20acquisition%20phase.%20Upon%20completion,%20it%20will%20be%20supplied%20with%20600,000%20barrels%20per%20day%20of%20Saudi%20Arabian%20crude.%20It%20is%20part%20of%20the%20numerous%20investment%20pledges%20made%20by%20the%20Crown%20Prince%20of%20Saudi%20Arabia,%20Prince%20Mohammed%20bin%20Salman,%20during%20his%20visit%20to%20the%20UAE%20capital%20in%202019.strongADNOC/strong%20and%20strongAramco/strong%20will%20have%20a%2050%%20stake%20in%20the%20Ratnagiri%20project,%20which%20is%20expected%20to%20have%20an%2018%20million%20tonnes%20chemical%20capacity%20per%20year.%20Aramco%20also%20plans%20to%20acquire%20the%20world's%20current%20largest%20refinery%20at%20Jamnagar%20in%20India's%20western%20Gujarat%20state%20as%20a%20means%20to%20secure%20demand%20for%20its%20crude.The%20planned%20downstream%20investment%20is%20a%20sign%20of%20majors%20and%20state-backed%20players'%20interest%20in%20the%20refining%20sector%20of%20India%20as%20it%20is%20one%20of%20the%20few%20places%20with%20a%20growing%20demand%20for%20crude%20and%20they%20look%20to%20supply%20crude%20to%20refinery%20assets%20in%20the%20country.Speaking%20to%20an%20Energy%20Intelligence%20Panel%20on%20Tuesday,%2014th%20October%202020,%20the%20Petroleum%20Minister%20of%20India,%20Dharmendra%20Pradhan%20said,%20emWe're%20not%20going%20to%20rethink%20on%20the%20size%20of%20the%20refinery%20or%20the%20partners%20of%20the%20refinery./emem“We’re%20confident%20that%20at%20a%20rescheduled%20time,%20we’re%20very%20much%20keen%20to%20develop%20the%20Ratnagiri%20refinery.”/emem“India%20has%20refining%20capacity%20of%20around%20250%20million%20metric%20tonnes.%20In%20next%20decade%20we%20want%20to%20add%20another%20minimum%20100%20MMT.%20By%202030,%20we%20must%20have%20350%20MMT%20refining%20capacity%20%5Bdemand%5D./emAccording%20to%20the%20Minister,%20the%20Indian%20government%20will%20divest%20from%20its%20energy%20sector%20as%20em“the%20government%20has%20no%20business%20to%20be%20in%20the%20business./ememIndia%20is%20very%20aggressive%20on%20solar%20energy.%20We%20have%20come%20down%20to%20a%20few%20cents%20today%20%5Btariffs%5D.%20Blending%20of%20solar%20energy%20with%20gas%20is%20a%20more%20hybrid%20model.”/em){kind=link}