Page 15 - DMEA Week 32 2021

DMEA
NEWS IN BRIEF
DMEA
India now exploring small
refineries in place of
Ratnagiri
Following the controversy over the
proposed INR3-trillion oil refinery project
in Maharashtra’s Ratnagiri, the Union government is now exploring options to set up several comparatively smaller-sized refineries across Gujarat, Karnataka, Maharashtra
and Andhra Pradesh, said two government officials, seeking anonymity.
In 2018, the Centre had cleared the proposal to set up the world’s largest oil refinery with a capacity of 60 million tonnes per annum, and a petrochemical complex at Babulwadi at Rajapur in Ratnagiri district, but opposition from the Shiv Sena stalled the project. While an alternative site in Raigad district was being considered, the project failed to gain traction.
“The sites shown in Raigad are not feasible. Considering that a refinery of 60 mtpa is a very big one, we are of the view that rather than putting it at one place, we can put refineries of 20 mtpa each or more in two or three places,” said one of the two officials cited above.
The project is a major component of India’s playbook to grow its refining capacity to 400 mtpa by 2025 from the existing installed capacity of 249.36 mtpa through 23 refineries. “We can shift one refinery to Gujarat and
put one more in some other place. We have looked at other states. On the west coast, there is Gujarat and Karnataka. Also, Andhra Pradesh is keen but they are on the east coast,” he added.
Queries emailed to spokespersons for Ratnagiri Refinery & Petrochemicals Ltd, the ministry of petroleum and natural gas, IOCL, HPCL, BPCL, Saudi Aramco and Adnoc on Thursday remained unanswered till press time.
“These are just initial plans. We are looking at multiple locations. It is a good alternative
now because doing one refinery in one place will require an investment of INR3 trillion. Maharashtra, Karnataka, Gujarat and Andhra Pradesh are options being explored,” the second official said.
BLOOMBERG
PETROCHEMICALS
Iran’s petchem revenues to reach $50b by 2027
Iran’s National Petrochemical Company (NPC) is planning the fourth leap of the petrochemical industry, based on which
the country’s petrochemical revenues are expected to reach $50 billion by the Iranian calendar year 1406 (starts in March 2027), according to NPO Managing Director Behzad Mohammadi.
“By completing the projects defined
in the second and third leaps, and the implementation of strategic projects defined in the fourth step of the smart development of the petrochemical industry, achieving a goal of generating $50 billion of revenue can be realized in the horizon of 1406,” Shana quoted Mohammadi as saying on Monday.
Speaking at the unveiling ceremony of the NPC’s new portal, Mohammadi noted that 47 major projects have been defined to be implemented in the fourth leap of the petrochemical industry.
“For the fourth leap, a total of 47 new projects have been defined and classified
into three sections: combined feed projects, new propylene production projects, and pioneering projects. With the implementation of the fourth leap projects by 1406, the cumulative investment in the country’s petrochemical industry will reach $ 125 billion,” he said.
He further mentioned the increasing demand for feedstock in the industry saying: “We received about 40 million tons of feed equivalent to one million barrels of crude oil
per day worth $6 billion from the oil industry in the previous [Iranian calendar] year (ended on March 20), which was consumed in 67 petrochemical complexes.”
With the projects of the third leap going operational in the Iranian calendar year 1404 (starts in March 2025), the petrochemical complexes’ feed demand will reach the equivalent of 2.3 million barrels of crude oil per day, he added.
Mohammadi noted that despite the restrictions caused by the coronavirus pandemic in the previous year, the development goals of the petrochemical industry were completely achieved, saying: “Last year, 25 million tons were added to the country’s petrochemical production capacity and 34 million tons of final products were produced, Which generated $15 billion in revenue.”
According to the NPC head, there are currently 50 petrochemical projects underway across the country that will be operational
by the end of 1404 and increase the annual production capacity of petrochemical products to 135 million tons.
The petrochemical industry plays a crucial role in Iran’s non-oil economy, as the export of such products is the second-largest source of revenue for the country after crude oil. Petrochemical exports already constitute nearly 33 percent of the country’s non-oil exports.
Facing the restrictions that the unjust U.S. sanctions brought about for the oil industry, its development has not been halted and, with a change in strategies, the Oil Ministry has been distancing itself from crude selling and is moving toward the production of products with more value-added.
One of the major areas for the realization of this goal has been the petrochemical industry, where a wide range of valuable products can be produced from Iran’s vast oil and gas resources.
TEHRAN TIMES
Week 32 12•August•2021
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