05 May 2018, News Wires – India’s refining capacity rose 5.8 per cent last financial year to 247.6 Million Tonne Per Annum (MMTPA) mainly on the back of capacity expansion at Jamnagar refinery operated by Reliance Industries (RIL) in Gujarat and Kochi refinery operated by Bharat Petroleum (BPCL).
Jamnagar refinery capacity expanded by 8 million tonne per annum (MTPA) while Kochi’s capacity increased by 3 MTA during the year.
The overall 5.8 per cent growth in the country’s refining capacity took place due to the growth of 3.5 per cent in Public Sector Undertakings or Joint Venture refineries and 10.2 per cent in private refineries, the oil ministry said in its latest report.
RIL increased Jamnagar (SEZ) refinery’s capacity to 35.2 MTPA in financial year 2017-2018 from 27 MTPA in financial year 2016-2017. The company had said in its financial results statement earlier this week its crude throughput in 2017-18 decreased marginally to 69.8 Million Tonne (MT) from 70.1 MT in 2016-2017.
“4Q FY18 revenue from the Refining & Marketing segment increased by 29.8% Y-o-Y to Rs 93,519 crore ($ 14.3 billion) led by 24.2 per cent YoY higher crude oil prices during the quarter. Segment EBIT declined by 10.9 per cent Y-o-Y to Rs 5,607 crore ($ 860 million), largely on account of reduced crude throughput and adverse move in Brent-Dubai differentials,” RIL said.
The company added that the strong performance driven by Petrochemicals, Retail, and Digital Service businesses was partially offset by reduced contribution from refining due to lower crude throughput as well as lower volumes in upstream oil and gas.
The oil ministry’s report shows Jamnagar refinery’s capacity utilization dropped to 106.02 per cent in 2017-18 as compared to 138.34 per cent recorded in the previous fiscal. The company’s overall capacity utilization dropped to 103.33 per cent from 116.96 per cent in 2016-2017.
The Kochi refinery in Kerala operated completed its Rs 16,500 crore Integrated Refinery Expansion Project (IREP) last financial year to become the largest public sector refinery in the country, surpassing the capacity of 15 MTPA Paradip refinery and 15 MTPA Panipat refinery operated by Indian Oil Corporation (IOC). The Kochi refinery increased its installed capacity to 15.5 MTPA in financial year 2017-2018 from 9.5 MTPA in the year ago period.
Bhatinda refinery, a JV between Hindustan Petroleum and Mittal Energy Investments Pvt Ltd, expanded its capacity to 11.3 MTPA in 2017-18 from 9 MTPA in 2016-17 as part of a $350 million expansion plan.
- ET Energy World