Petrochemical Industry needs to undergo significant changes; amassing the shift of market trends is crucial for a viable future growth – Shri Tarun Kapoor, Secretary, Ministry of Petroleum and Natural Gas, Government of India
No. PR- 101
September 14, 2021
Petrochemical Industry needs to undergo significant changes; amassing the shift of market trends is crucial for a viable future growth - Shri Tarun Kapoor, Secretary, Ministry of Petroleum and Natural Gas, Government of India
To bring together the different stakeholders and discuss the future of refineries, deep-water operations, ease of doing business as well as the opportunities in India, PHD Chamber of Commerce and Industry organized the “National Refining & Petrochemical Conclave 2021” on 14th September 2021.
An interactive panel discussion of the industry, senior officials from Central and State Governments, technology providers, policymakers, thought leaders and financial institutions was curated to discuss the issues, challenges and opportunities in this sector.
Shri Tarun Kapoor, IAS, Secretary, Ministry of Petroleum and Natural Gas, Govt of India, said that, going forward, complete demand and requirement of the economy for petrochemicals will witness a major shift, for which India’s refining configuration have to be different and new refineries will have to function, in accordance, to live up to the changing patterns of the growing demand.
The markets for petrochemicals, as against those of diesel, are growing at a good pace and hence, significant influx of private sector investments into the sector and for all the downstream chain of petroleum products is the need of the hour.
He further added that in the coming years the refinery business would have to undergo significant positive changes and amassing of the market trends and demands will be very crucial for the producers.
Ms. Rukmani Riar Sihag, IAS, Executive Director, RIICO and Addl. Commissioner (Investment & NRIs), Bureau of Investment Promotion Rajasthan, highlighted that Rajasthan is at the threshold of turning into an important petrochemical and petroleum destination of the country. The state of Rajasthan is also a prominent location in the world map of hydrocarbon reserves and production, as the state has significant resources and potential in hydrocarbon under petroliferous basin; three of these basins have been upgraded to category one, that is equivalent to Bombay High, Assam, and Gujarat, she said.
Ms Sihag further added that “38 oil and gas field have been discovered in the Barmer-Sanchore Basin of which the Mangala oil field has been rated as one of the biggest discoveries in Sanchore. Rajasthan produces natural gas and also heavy oil resources. Natural Gas and oil companies of reputed multinational as well as private companies are largely engaged in our state and currently in operation”.
Highlighting the growth trajectory and overall capacity of Indian petrochemical industry Mr. Rajeev Mathur, President- Oil & Gas, CAIRN INDIA, informed that, India, today is the world’s 4th largest in terms of refining capacity after US, China and Russia. The current capacity is two-hundred fifty million tonnes per annum of refining capacity. There are a total of 23 refineries in India out of which 18 of them belong to the public sector and the rest are owned by private enterprises or are joint ventures. Indian Oil Corporation has the largest refinery in India with the capacity of over 70 seventy million tonnes per annum.
He further mentioned that, the Indian petrochemical sector has seen a spectacular growth in the last couple of decades and India is now one of the major exporters of refined products across the world. Going forward, India is projected to contribute about 15% of Asia’s crude oil refining capacity by the year 2023 with ability process 6.5 million barrels per day.
Mr. Sanjay Aggarwal, President, PHDCCI, in his presidential address stated that the refining industry is undergoing critical restructuring at present. Firstly, the configurations are continuously changing due to even stringent environmental regulations and stress on cleaner fuels.
The refineries are now changing from middle distillate maximization to light distillate maximization also being a primary feed provider; Refineries are forward integrating with high-value petrochemicals to maximize bottom lines via utilizing last available useful molecule to a value-added product.
The majority of Indian petrochemical companies have evolved from petroleum refineries with the intention of achieving higher net realisation. The chemical industry is dominated by basic commodity chemicals in terms of volume with one-two step downstream privatization, he added.
Mr Pawan Tibrawala, Co-Chair Hydrocarbon Committee, PHDCCI presented vote of thanks He assured PHDCCI’s commitment towards working closely with the Government, Institutions and all the Stakeholders of the Industry for a better India.
The webinar was moderated by Dr. Jatinder Singh, Director, PHDCCI. PHDCCI’s webinar was supported by Annual Sponsors such as DLF India; Multani Pharmaceuticals; UFLEX; JK Tyre & Industries; Marble City; Paramount Cables; SMC Investments and Advisors; Blossom Kochhar Aroma Magic; Comtech Interio; DCM Shriram Industries; Radico Khaitan; R.E. Rogers India; Ajit Industries; EaseMyTrip; Synergy Environics; Continental Carriers; Timberworkz; Jindal Stainless; Modern Automobiles; P S Bedi & Co; IFFCO and Hindware.
PHD Chamber of Commerce and Industry