IOCL Doubles Down on Panipat Refinery Expansion Gets Greenlight

Indian Oil Corporation's (IOCL) Board has granted approval for a significant expansion of the Panipat refinery, increasing its capacity from 15 to 25 million tonnes. The project, aimed at enhancing operational flexibility, will lead to a surge in the production of petrochemicals and specialty products.

However, this expansion comes with an upward revision in the project cost, now standing at Rs 36,225 crore, up from the initial estimate of Rs 32,946 crore. Additionally, the completion schedule has been extended from September 2024 to December 2025.

The company's strategic move towards diversification includes securing board approval for the procurement and installation of 4,000 fast electric vehicle (EV) chargers. This forward-looking initiative involves a capital investment of Rs 919.78 crore and aligns with the broader objective of reducing dependence on conventional fuel businesses. Notably, the expansion plan also involves engaging McDermott International for further expansions in olefins and polymers production at the Panipat refining and chemical complex.

IOCL, a major player in the energy sector, currently owns and operates nine refineries, boasting a total operational capacity of 70.1 million tonnes per annum. This expansion initiative reflects the company's commitment to staying ahead in the evolving energy landscape and capitalizing on emerging opportunities in the petrochemical and electric vehicle sectors.

News by Rahul Yelligetti