Crude refining capacity to rise 80% by 2025: PM Modi
Due to spread of Covid-19 pandemic worldwide and subsequent lockdown of various global economies benchmark Brent crude had plunged below $20 a barrel by April 21 due to slack demand and oversupply from over $51.9 per barrel on March 2.Updated: Oct 27, 2020, 04:01 IST
India will raise its crude oil refining capacity by 80% to 450 million tonnes in the next five year as it is set to nearly double its energy consumption over the long term, Prime Minister Narendra Modi on Monday said.
“We plan to grow our refining capacities from about 250 to 400 million metric tonnes per annum by 2025,” the Prime Minister said at the fourth India Energy Forum on ‘India’s Energy Future in a world of Change’ organised by CERA Week.
According to oil ministry’s datakeeper Petroleum Planning and Analysis Cell (PPAC), India’s refining capacity is 249.9 million tonnes, but capacity utilisation was higher at 254.4 million tonnes in 2019-20. That year India consumed 214.1 million tonnes of refined products domestically and exported the rest.
Referring to the spread of Covid-19 pandemic and its adverse impact on global energy demand, PM Modi said, “Leading global bodies project that there will be a contraction in global energy demand over the next few years also. But, these agencies project India to emerge as a leading energy consumer.”
Due to spread of Covid-19 pandemic worldwide and subsequent lockdown of various global economies benchmark Brent crude had plunged below $20 a barrel by April 21 due to slack demand and oversupply from over $51.9 per barrel on March 2.
It was hovering around $40.55 a barrel on Monday, 2.92% down from the previous day.
“I can assure you: India is full of energy! India’s energy future is bright and secure,” he said at the conference adding that “India is set to nearly double its energy consumption over the long term.” The virtual conference was attended by US energy secretary Dan Brouillette, Saudi Arabia energy minister Prince Adbul-aziz, petroleum minister Dharmendra Pradhan and IHS Markit vice chairman Daniel Yergin.
Speaking at the conference, Pradhan said, “With more than 1.3 billion people, India is the third largest consumer of energy [after the US and China] in the world. Our energy requirements in the coming years are bound to grow as per capita energy consumption still far below the global average.”
“We are confident to meet national energy needs based on the Energy Vision as laid out by Hon’ble Prime Minister Shri Narendra Modi ji, covering energy access, energy efficiency, energy sustainability, energy security and energy justice,” he said.