The Indian Oil Company managed to run its refineries at optimum ranges and ensured retail gas shops had enough provides in the course of the Covid-19 disaster. Shrikant Madhav Vaidya, chairman, tells FE’s Anupam Chatterjee the corporate is adapting to new market realities via petrochemicals integration in its refineries and scale-up of renewables and different various gas choices. Excerpts:
Petrochemical integration was part of your refinery growth plans. How a lot progress have you ever made on that entrance? Do you anticipate petrochemicals to be a big driver of oil demand within the long-term?
There’s a rising consensus that petrochemical integration is the best way ahead for the refining sector. Our give attention to Crude-To-Chemical substances is a part of an effort to derive most worth from the hydrocarbon chain. We consider it’ll assist unlock the massive potential for the petrochemical sector. It’ll additionally permit us to hedge in opposition to cyclical efficiency with higher returns and the advantages of built-in utility administration.
Increased refining capability ought to enhance the provision of petrochemical feedstock sooner or later. With this in thoughts, Indian Oil is increasing its petrochemicals capability by greater than 70% from the current 3.2 million tonne a 12 months. We plan to boost our petrochemical integration to 14-15% by 2030.
In the long run, the main target can be on capability augmentation, abroad growth, and entry into area of interest petrochemicals and larger ahead integration with textiles. We’re consolidating our polymer portfolio by establishing new Polypropylene items at Barauni and in Gujarat.
Our upcoming Butyl Acrylate plant in Gujarat will mark our entry into the speciality chemical substances section. To cater to the paint & adhesive business, new vegetation for Ethylene Glycol and PTA (Purified Terephthalic Acid) are being arrange at Paradip. Polyester yarn and fibre manufacturing at Bhadrak in Odisha utilizing PTA and Mono Ethylene Glycol as feedstock will assist in downstream integration with the textile business.
Since Indian Oil’s refineries use greater than 2 million metric tonne of gasoline yearly, and most of your items are inside 300 km of gasoline injection factors, what impression will the current gasoline pipeline tariff rationalisation coverage have on the corporate?
Looking for to spice up gasoline consumption, the Petroleum and Pure Fuel Regulatory Board (PNGRB) has notified a brand new tariff construction for 14 pure gasoline pipelines. We are going to assess its impression on our enterprise as soon as this construction comes into impact. Our refineries at Mathura, Panipat and in Gujarat, and our subsidiary CPCL- Chennai use RLNG.
With the event of the Nationwide Fuel Grid and commissioning of the Dhamra LNG Terminal on the east coast, our refineries at Barauni, Haldia, Paradip, Guwahati and Bongaigaon must also begin consuming RLNG within the subsequent 2-3 years.
This may see Indian Oil’s captive consumption rising to just about 8 MMTPA by 2025. All in all, the refinery sector would play a serious function in boosting gasoline consumption within the nation, as the federal government seeks to do.
IOCL targets growing gas cells for inexperienced mobility options and indigenous hydrogen storage options, having used hydrogen era applied sciences from international majors throughout its refineries. Might you share your plans on the alternate power entrance?
As an oil sector main, Indian Oil needs to leverage the brand new alternatives which have arisen within the power area. This entails widening the power basket, with bioenergy and renewables being tapped for total progress. I firmly consider that every power kind has a task to play in assembly India’s rising wants.
Pushing renewables and various gas choices are thus key to our agenda. Our R&D institution has been exploring options for clear, renewable power. On this context, hydrogen has nice potential to emerge as essentially the most sustainable gas of all.
The usage of hydrogen throughout sectors is witnessing an increase globally, although most of it serves as a feedstock for chemical and petrochemical industries at current. Our refineries, which have hydrogen era items, can be utilized to provide and provide the gas to satisfy future demand.
Indian Oil’s R&D Centre has already emerged as a pioneer in hydrogen analysis within the nation. Our HCNG experiment in Delhi, as a part of which we’re plying 50 CNG BS-IV buses on HCNG gas, is progressing nicely.
Additional, with the assist of the MoPNG, Indian Oil is establishing 1-tonne-per-day pilot vegetation based mostly on 4 progressive hydrogen manufacturing applied sciences. We’d even be working 15 gas cell buses within the Delhi-NCR area. We just lately signed an announcement of intent with Greenstat, a Norwegian firm, to arrange a Centre of Excellence on Hydrogen (CoE-H) within the nation and speed up the shift from fossil fuels to renewable power.
As for different various power sources, we’re one of many first Oil Advertising Firms to put money into photo voltaic and wind tasks throughout India. Leveraging the coverage assist for biofuels, we’re increasing in a giant approach into bioenergy. Compressed Biogas (CBG), 2-G Ethanol, waste-to-fuel and used-cooking-oil-to-biodiesel are the areas Indian Oil is investing in. Underneath the SATAT scheme, the corporate has begun advertising and marketing CBG below the “IndiGreen” model, being the one oil and gasoline firm to take action. We’re additionally searching for partnerships to develop battery expertise and get into cell manufacturing.
Indian Oil already presents electrical automobile charging and battery swapping services at choose stores and intends tapping this high-potential section.