Karandikars & Associates

Refining Capacity

Like in case of crude oil and petroleum products data, Refining Capacity in India is typically represented in million tons per annum

Around the world, most common unit of measurement for production / consumption of crude oil & petroleum products, and Refining Capacity is thousand barrels per day (also known as kilo barrels per day, that is kbd), or million barrels per day

In crude oil production section, we have explained basis of K&A's approximate rule of thumb for quick and fairly accurate conversion from MMTPA to kbd for crude oil produciton. Same applies to Refining capacity conversion from MMTPA to kbd and vice versa

Indian Oil Corporation Limited (IOC) has refineries at Digboi, Guwahati, Koyali, Barauni, Haldia, Mathura, Panipat and Bongaigaon

Erstwhile Chennai Petroleum Corporation Ltd (CPCL), which is a subsidiary of IOC, has refineries at Manali and Cauvery Basin. A new 9 MMTPA refinery is being built in Nagapattinam will replace the existing 1 MMTPA refinery at Cauvery Basin

Hindustan Petroleum Corporation Ltd (HPCL) has refineries at Mumbai and Visakhapatnam

HMEL GGSR, the Guru Gobind Singh Refinery (GGSR) is a joint venture refinery owned by HMEL, a joint venture between HPCL and Mittal Energy Investment Pte Ltd, owned by Laxmi Mittal, with 48.99% each, while the remaining shareholding of approximately 2.02% is held by various financial institutions, including IFCI, SBI, and HDFC Life

HPCL itself has become subsidiary of Oil and Natural Gas Corporation (ONGC), which holds a majority 51.11% stake in HPCL

Bharat Petroleum Corporation Ltd (BPCL) operates three main refineries: the Mumbai Refinery in Maharashtra, the Kochi Refinery in Kerala, and the Bina Refinery in Madhya Pradesh

The Bina Refinery was initially a joint venture called Bharat Oman Refinery Limited (BORL). In 2021, BPCL acquired the remaining 36.6% stake in the refinery from its previous partner, OQ (formerly Oman Oil Company Ltd), to gain full control

Kochi Refinery was formerly known as Cochin Refineries Limited, and was originally established as a joint venture in collaboration with Phillips Petroleum Corporation, USA

Numaligarh Refinery Limited (NRL) was established as a Company in accordance with the provisions made in the historic Assam Accord signed on 15th August 1985. NRL is under the Ministry of Petroleum and Natural Gas, Govt. of India

Mangalore Refinery and Petrochemicals Limited (MRPL) is owned by the Oil and Natural Gas Corporation Limited (ONGC), which holds a majority stake of over 71.63%. ONGC is a subsidiary of the Government of India, making MRPL a public sector enterprise under the administrative control of the Ministry of Petroleum and Natural Gas. HPCL owns a 16.96% stake in MRPL, with the public holding the remaining 11.41% of the shares. MRPL was originally established as a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the A.V. Birla Group. In March 2003, ONGC acquired the entire equity stake of the A.V. Birla Group and infused fresh capital

The ONGC Tatipaka Refinery is a mini refinery in Tatipaka, Andhra Pradesh, India, that was commissioned in 2001 to process crude oil and condensate from ONGC's nearby operations

That brings us to India`s private sector refineries

Reliance Industries Limited (RIL): Operates a large refining complex in Jamnagar, Gujarat, with two separate but interconnected refineries, designated as DTA (Domestic Tariff Area) and SEZ (Special Economic Zone) refineries, and make up the world's largest single-location refining complex when combined

Nayara Energy: Operates a refinery in Vadinar, Gujarat, which was formerly owned by Essar Oil

Table below captures trend in Refining Capacity build-up

If we scroll down the above Table, for the year ending 1996-97, India's refining capacity was 62.2 milion tons. The subsequent two major jumps in refining capacity were due to commissioning of the first 27 MMTPA reefinery at Jamnagar in 1998-99, and the second 29 MMTPA refinery in 2007-08, besides setting up of other capacities, as captured in the Table, the major ones being Nayara and Paradip

View the trends graphically