CRISIL: Indian OMCs to Boost Crude Oil Refining Capacity by 2030

SEATTLE (Oil Monster): According to CRISIL Ratings, India’s oil marketing companies (OMCs) are expected to add between 35 and 40 million tonnes (Mt) of crude oil refining capacity by the end of 2030. This will lift the installed base to around 295 Mt. It must be noted that the country’s refining capacity recorded significant growth by 42 Mt during the ten-year period ending fiscal 2024.

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A capital investment of between INR 1.9 lakh crore to INR 2.2 lakh crore would be needed for this. The aforementioned assets have modest project risks, according to Crisil Ratings. It also anticipates consistent business returns. The country will be able to handle the expected expansion in consumption with the aid of the predicted investments.

The domestic consumption of petroleum products grew at a compound annual growth rate (CAGR) of 4% during the last ten years. Transport fuels saw a 4% increase in use, making up about 56% of the total. Additionally, there was a 2% increase in naphtha usage.

Over the next six years, Anuj Sethi, Senior Director at CRISIL Ratings, stated that the company anticipates that overall petroleum product consumption will moderately increase at a nearly 3% CAGR, mostly due to a slower rate of increase in the consumption of transportation fuel.