Bloomberg cited India Oil Minister Dharmendra Pradhan as saying in a Twitter post that the refinery is planned to be built in two phases. The first phase, which is estimated to cost Rs 1 trillion ($14.8bn), will involve development of 800,000 barrel-a-day facility.
The proposed refinery is expected to produce gasoline, diesel, liquefied petroleum gas, jet fuel and supply feed stock for petrochemical plants in Maharashtra.
Currently, world’s biggest refinery complex, with a crude processing capacity of about 1.2 million barrels a day, in the Indian state of Gujarat, is being operated by Reliance Industries.
By 2040, India is expected consume about 10 million bpd, according to the International Energy Agency.
Last year, Indian Oil has commenced crude processing at its $5.2bn Paradip refinery, which has a capacity of 300,000 barrel per day (bpd), in the state of Odisha, India.
In addition to supplying to the markets in east India, the refinery’s output is expected to make India compete with supplies from new and expanded plants in the Middle East and China.
Image: India’s oil consumption is estimated to increase to about 10 million bpd by 2040, according to the International Energy Agency. Photo: courtesy of Victor Habbick/ FreeDigitalPhotos.net.
