The Indian Oil Company managed to run its refineries at optimum ranges and ensured retail gas shops had adequate provides in the course of the Covid-19 disaster. Shrikant Madhav Vaidya, chairman, tells FE’s Anupam Chatterjee the corporate is adapting to new market realities by petrochemicals integration in its refineries and scale-up of renewables and different various gas choices. Excerpts:
Petrochemical integration was part of your refinery growth plans. How a lot progress have you ever made on that entrance? Do you count on petrochemicals to be a major driver of oil demand within the long-term?
There’s a rising consensus that petrochemical integration is the way in which ahead for the refining sector. Our deal with Crude-To-Chemical substances is a part of an effort to derive most worth from the hydrocarbon chain. We imagine it is going to assist unlock the large potential for the petrochemical sector. It is going to additionally permit us to hedge towards cyclical efficiency with higher returns and the advantages of built-in utility administration.
Increased refining capability ought to enhance the supply of petrochemical feedstock sooner or later. With this in thoughts, Indian Oil is increasing its petrochemicals capability by greater than 70% from the current 3.2 million tonne a 12 months. We plan to boost our petrochemical integration to 14-15% by 2030.
In the long run, the main target can be on capability augmentation, abroad growth, and entry into area of interest petrochemicals and better ahead integration with textiles. We’re consolidating our polymer portfolio by establishing new Polypropylene models at Barauni and in Gujarat.
Our upcoming Butyl Acrylate plant in Gujarat will mark our entry into the speciality chemical compounds section. To cater to the paint & adhesive trade, new crops for Ethylene Glycol and PTA (Purified Terephthalic Acid) are being arrange at Paradip. Polyester yarn and fibre manufacturing at Bhadrak in Odisha utilizing PTA and Mono Ethylene Glycol as feedstock will assist in downstream integration with the textile trade.
Since Indian Oil’s refineries use greater than 2 million metric tonne of fuel yearly, and most of your models are inside 300 km of fuel injection factors, what impression will the current fuel pipeline tariff rationalisation coverage have on the corporate?
In search of to spice up fuel consumption, the Petroleum and Pure Fuel Regulatory Board (PNGRB) has notified a brand new tariff construction for 14 pure fuel pipelines. We are going to assess its impression on our enterprise as soon as this construction comes into impact. Our refineries at Mathura, Panipat and in Gujarat, and our subsidiary CPCL- Chennai use RLNG.
With the event of the Nationwide Fuel Grid and commissioning of the Dhamra LNG Terminal on the east coast, our refineries at Barauni, Haldia, Paradip, Guwahati and Bongaigaon must also begin consuming RLNG within the subsequent 2-3 years.
This is able to see Indian Oil’s captive consumption rising to just about 8 MMTPA by 2025. All in all, the refinery sector would play a significant position in boosting fuel consumption within the nation, as the federal government seeks to do.
IOCL targets creating gas cells for inexperienced mobility options and indigenous hydrogen storage options, having used hydrogen technology applied sciences from world majors throughout its refineries. Might you share your plans on the alternate vitality entrance?
As an oil sector main, Indian Oil desires to leverage the brand new alternatives which have arisen within the vitality area. This entails widening the vitality basket, with bioenergy and renewables being tapped for total progress. I firmly imagine that every vitality type has a job to play in assembly India’s rising wants.
Pushing renewables and various gas choices are thus key to our agenda. Our R&D institution has been exploring options for clear, renewable vitality. On this context, hydrogen has nice potential to emerge as probably the most sustainable gas of all.
The usage of hydrogen throughout sectors is witnessing an increase globally, although most of it serves as a feedstock for chemical and petrochemical industries at current. Our refineries, which have hydrogen technology models, can be utilized to supply and provide the gas to fulfill future demand.
Indian Oil’s R&D Centre has already emerged as a pioneer in hydrogen analysis within the nation. Our HCNG experiment in Delhi, as a part of which we’re plying 50 CNG BS-IV buses on HCNG gas, is progressing properly.
Additional, with the help of the MoPNG, Indian Oil is establishing 1-tonne-per-day pilot crops primarily based on 4 modern hydrogen manufacturing applied sciences. We might even be working 15 gas cell buses within the Delhi-NCR area. We just lately signed a press release of intent with Greenstat, a Norwegian firm, to arrange a Centre of Excellence on Hydrogen (CoE-H) within the nation and speed up the shift from fossil fuels to renewable vitality.
As for different various vitality sources, we’re one of many first Oil Advertising and marketing Firms to spend money on photo voltaic and wind tasks throughout India. Leveraging the coverage help for biofuels, we’re increasing in an enormous approach into bioenergy. Compressed Biogas (CBG), 2-G Ethanol, waste-to-fuel and used-cooking-oil-to-biodiesel are the areas Indian Oil is investing in. Below the SATAT scheme, the corporate has begun advertising CBG below the “IndiGreen” model, being the one oil and fuel firm to take action. We’re additionally in search of partnerships to develop battery expertise and get into cell manufacturing.
Indian Oil already affords electrical car charging and battery swapping services at choose stores and intends tapping this high-potential section.