Indian Oil will expand production capacities from 2012 to 2017

Indian Oil Corp. and its 51.89% held unit, Chennai Petroleum Corp., announced plans to double their combined refining capacity by March 2022. The proposed expansion plan is in response to India’s growing economy and the promising increase in vehicle sales, which is expected to boost the demand for fuel products in India. Their goal is to produce a refining capability of 125 million metric tons per year, or 2.5 million barrels a day, by the year, till 2022. Indian Oil and Chennai Petroleum Corp. together control half of the refineries in the country, and have a total refining capacity of 65.7 million tons a year, or 1.31 million barrels a day. Demand for fuel continues to rise, mainly because over the past years, India’s economy has grown by 8%. According to analysts, the trend is expected to continue, with increasing demand for transportation fuels such as gasoline, diesel fuel and jet fuel. From 2012 to 2017, Indian refiners are expected to invest around Rs600-700 billion (US$12.1-14.1 billion) for capacity expansion. From April 2012 to March 2017, IOC plans to expand its production capacity in its various refineries. (September 16, 2011)