November 13, 2024 [Reuters]- Indian Oil Corp expects to complete expansion of its refineries in Panipat, Gujarat and Barauni by December of next year, said sources familiar with the information on Tuesday.

“We see all three refinery expansions converging by December 2025,” one of the source said, adding that the crisis in Ukraine and COVID pandemic were primary reasons for the delays.

India’s top refiner was expanding the capacity of its Barauni refinery in the state of Bihar from 6.0 million tonnes per annum to 9 million tonnes at an estimated cost 160 billion rupees ($1.90 billion) and there is a 10% cost overrun, the sources added.

The state-run refiner is expanding the Panipat Refinery from 15 MMTPA to 25 MMTPA and the Gujarat Refinery from 13.7 MMTPA to 18 MMTPA along with its integration to lube and petrochemical production units.

The refinery expansions come as India aims to raise its refinery capacity to as much as 450 MTPA, from about 249 MTPA, or about 5 million barrels per day (bpd), currently.

The Gujarat refinery expansion was initially scheduled for completion by mid-2024, while the Panipat expansion has also been delayed by over a year.

IOC last year approved the cost increase in the Panipat refinery expansion to about 362.25 billion rupees from the original plan of about 330 billion rupees.

The refiner plans to shut down its hydrocracker and some secondary units at the Gujarat refinery for revamp by this fiscal year-end, and the gasoline-making unit at the Barauni refinery by the irst to second quarter of the next fiscal year, sources said.

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