Updated February 14th, 2024 at 16:46 IST

State refiners invest in petrochemicals to diversify revenue streams

Official shared the government's vision of becoming a net exporter of petrochemicals.

Reported by: Business Desk
State refiners invest in petrochemicals to diversify revenue streams | Image:Unsplash
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Refiners invest in petrochemicals: State-owned refiners, including BPCL, ONGC, HPCL, Reliance Industries, and Nayara Energy, are making investments in expanding their petrochemical capacities, aiming to reduce their carbon footprint and enhance revenue streams. This strategic shift marks a departure from traditional refining activities and underscores a commitment to sustainable growth.

Pankaj Jain, Secretary, Ministry of Petroleum & Natural Gas Shastri Bhawan, highlighted the refiners' focus on boosting conversion ratios from crude to petrochemicals, aiming for 10 per cent to 15 per cent, up from the current 4 per cent to 5 per cent. Krishnakumar Gopalan, BPCL chairman, expressed optimism about the growing economy and emphasised a responsible approach to capacity expansion, with a shift towards petrochemicals.

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Adding capacity to plants

HPCL-Mittal Energy Ltd CEO Prabh Das mentioned plans to add new capacity to the plant in Bhatinda. This expansion aligns with the government's vision of becoming a net exporter of petrochemicals, reflecting a proactive stance towards sustainable growth.

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Prasad Panicker, head of refineries at Nayara Energy, announced the commencement of their journey into the petrochemicals industry with a project at the Vadinar refinery. Refining CEOs stressed the importance of minimising emissions through technology while expanding operations, underscoring the industry's commitment to environmental stewardship.

Sumit Ritolia, refinery economics analyst at S&P Global Commodity Insights, praised the refiners for embracing petrochemical ventures to adapt to changing market dynamics and enhance competitiveness. This strategic shift positions Indian refiners to tap into new revenue streams and reduce dependence on traditional transport fuels in the face of the energy transition and the rise of electric vehicles.

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The International Energy Agency (IEA) has recognised the refining industry for its global contributions, highlighting the country's potential as a reliable international product supplier. Despite increased competition, India's refining capacity expansion is poised to meet robust domestic demand while sustaining substantial product exports, reinforcing its status as a key player in the global energy landscape.

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Published February 14th, 2024 at 16:46 IST