Indian Oil Corporation Limited (IOCL) would continue its investment momentum with brownfield and greenfield expansions in the financial year 2024-25, said Chairman Shrikant Madhav Vaidya in the company’s annual general meeting (AGM).
The company’s infrastructure expansion would ensure a reliable energy supply to meet the nation's needs, said Vaidya.
“This is crucial, as India’s oil demand is projected to increase at a Compounded Annual Growth Rate of 2.3% until 2050. With demand expected to rise by more than 50%, our infrastructure expansion will ensure a reliable energy supply to meet the nation's needs,” he said.
Indian Oil is also integrating petrochemicals into its refining operations, which would enrich its value chain, meet rising petrochemical demand, reduce import reliance, and insulate the bottom line from the impacts of oil price fluctuations, he added.
Indian Oil is working to set up a mega petrochemical complex in Paradip, Odisha with an investment of over Rs 61,000 crore.
In FY24, the company’s refining throughput reached an all-time high of 73.3 million metric tonnes (MMT), with a capacity utilisation of 104.5 percent, while the marketing network achieved a record 97.6 MMT of products sales.
The cross-county pipelines, with the throughput of liquid pipelines (transporting crude and products), exceeded 95.8 million metric tonnes while the company expanded the network by about 2,100 kilometers, including a 1,700-kilometer LPG pipeline. “With this, our energy highways now span nearly 20,000 kilometers, enhancing fuel distribution efficiency across the country,” said Vaidya.
Net-zero plans
In an effort to contribute to India’s net-zero emissions target, Vaidya said Indian Oil is actively contributing to the SATAT initiative that offers triple benefits of sustainable mobility, enhancing farmers’ prosperity and strengthening India's energy security.
Till date, Indian Oil has commissioned 33 compressed biogas (CBG) plants and issued over 1,700 letters of intent to support India's goal of producing 5 million tonnes of biogas per annum by 2030.
In 2024-25, the company plans to set up additional 30 CBG plants through our proposed joint venture (JV) companies with EverEnviro, GPS Renewables, and Praj Industries.
Indian Oil is also planning to set up India’s first commercial-scale sustainable aviation fuel (SAF) plant at Panipat.
“This will be an important move in meeting India's indicative SAF blending targets of 1% by 2027, 2% by 2028, and 5% by 2030. We have identified our refineries at Panipat, Barauni, Haldia and CPCL, for co-processing of 5% non- edible oils through the Hydroprocessed esters and fatty acids (HEFA) route to produce SAF,” said Vaidya.
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