Indian Oil Corporation (IOC), India's leading oil refining and marketing company, has announced an ambitious investment plan of Rs 1.66 lakh crore over the next five years. This strategic move aims to significantly expand the company's operations across various segments of the energy sector.

Refining Capacity Expansion

IOC plans to increase its crude oil refining capacity from the current 80.75 million tonnes per annum to 98.4 million tonnes by 2028. This expansion will be achieved through upgrades at key facilities:

• Panipat refinery
• Gujarat refinery
• Barauni refinery

Pipeline Network Enhancement

The company is set to expand its pipeline network to 22,000 km, with 21 projects currently under execution. These projects include:

• Pipeline extensions
• New storage facilities in Nepal

Petrochemicals Growth

IOC has set an ambitious target for its petrochemicals business:

• Current capacity: 4.3 million tonnes per annum
• Target capacity: Over 13 million tonnes by 2030

The focus will be on specialty chemicals, indicating a move towards higher-value products.

Retail Network Expansion

IOC plans to enhance its extensive retail network of over 40,000 fuel stations by adding:

• EV chargers
• Battery-swapping stations
• CNG/LNG dispensing outlets

This expansion aims to cater to the evolving needs of its massive customer base, which currently stands at 3.2 crore daily customers.

Energy Transition Initiatives

In a separate but related development, IOC is investing Rs 2.5 lakh crore in energy transition initiatives to achieve net-zero operational emissions by 2046. This investment includes:

• Green hydrogen production
• Expansion of renewable electricity portfolio from 1 GW to 18 GW within three years

Company Performance

IOC has demonstrated strong performance, with sales volumes crossing the 100 million tonne mark. The company's vast network of over 40,000 fuel stations serves 3.2 crore customers daily, underlining its significant market presence.

This comprehensive investment plan showcases IOC's commitment to strengthening its core business while also adapting to the changing energy landscape. The focus on renewable energy and green initiatives alongside traditional fuel business expansion indicates a balanced approach towards future growth and sustainability.

Indian Oil Corporation (IOC), India's leading oil refining and marketing company, is poised to significantly boost its liquefied natural gas (LNG) portfolio. The state-owned enterprise has struck a landmark deal with Abu Dhabi National Oil Company (ADNOC), set to commence in 2029.

Key Highlights of the Deal

• IOC will become ADNOC's largest LNG buyer
• The agreement involves a total offtake of 2.2 million tonnes per annum (MTPA) of LNG
• The partnership is scheduled to begin in 2029

Strategic Implications

This long-term agreement marks a significant step for IOC in securing a stable supply of LNG, a cleaner-burning fuel that is becoming increasingly important in India's energy mix. The deal underscores IOC's commitment to diversifying its energy sources and strengthening its position in the global LNG market.

For ADNOC, the United Arab Emirates-based energy giant, this partnership represents a major expansion of its LNG customer base. By securing IOC as its biggest LNG buyer, ADNOC is solidifying its position as a key player in the international LNG trade.

Looking Ahead

The timing of the deal, set to commence in 2029, suggests a long-term strategic outlook from both parties. It allows time for necessary infrastructure developments and aligns with projected increases in India's energy demand.

As India continues to prioritize cleaner energy sources to meet its growing needs, this partnership between IOC and ADNOC is likely to play a crucial role in shaping the country's energy landscape in the coming decades.

While the financial details of the agreement have not been disclosed, the scale of the offtake - 2.2 MTPA - indicates a significant long-term commitment from both parties.

This development is expected to have far-reaching implications for India's energy security and could potentially influence the dynamics of the global LNG market.