MOSCOW (MRC) -- India’s top refiner Indian Oil Corp has been operating at 100% capacity since early November as local fuel demand has recovered, its chairman S.M. Vaidya said, said Reuters.
IOC has been gradually raising crude runs at its plants, which plunged to about 39% at the beginning of April when a nationwide coronavirus lockdown hit fuel demand.
Along with its subsidiary Chennai Petroleum Corp, IOC controls about a third of the 5 MMbpd refining capacity in India, where fuel demand in October rose by 2.5%, its first year-on-year rise in eight months. IOC is operating at full capacity despite lower global refining margins as its “mandate” is to meet the local fuel demand, Vaidya told an oil industry conference on Thursday.
“Refining margins are very poor, in fact they are just not sustainable ... but we are also investing heavily in petrochemicals as a strategy to de-risk the business of low margins,” Vaidya said during the ADIPEC event. Like other Indian refiners, IOC normally operates its plants at more than installed capacity. Vaidya said the situation will return to normal in next quarter.
As MRC informed earlier, Indian Oil Corp. Ltd. (IOC) has approved the addition of a petrochemical and lube integration component to its previously announced and long-planned project that will expand crude oil processing capacity of its 13.7 million-tonne/year Koyali refinery at Vadodara in India’s western state of Gujarat.
As MRC informed earlier, IOC is expanding its petrochemical capacity by more than 70 per cent from its current 3.2 million tonnes a year. It is also on new technologies that reduces the cost of producing petrochemicals.
According to MRC's ScanPlast report, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.