“As India’s energy custodians, your company has crafted a clear roadmap to drive India’s energy destiny. To fuel the rising energy demand of an ascendant India, we are committed to increasing our share in India’s energy pie from the current 9% to around 12.5% by 2050,” chairman Shrikant Madhav Vaidya instructed shareholders on the AGM.
The firm will spend Rs 1 lakh crore on increasing refining capability and Rs 2.4 lakh crore on tasks for attaining net-zero carbon emissions from its operations. Another Rs 60,000 crore to be spent on constructing a petrochemical advanced at Paradip in Odisha.
IndianOil is leveraging different vitality pathways that can set up it “as a 360-degree energy company,” he mentioned. (*4*) The nation’s largest refiner, which controls 40% of the gas retail market has set a 2046 net-zero goal.
“The Indian economy is surging ahead, aiming for the $5 trillion mark by 2025. Reflecting India’s robust economic growth, the latest outlook from the International Energy Agency has pegged India’s energy demand to go up from the current 5 million barrels per day (mbpd) to 7 mbpd by 2030, and about 9 mbpd by 2040,” Vaidya mentioned.
Meeting this demand would require extra funding in strengthening conventional gas enterprise whereas navigating the vitality transition pathway, he mentioned. The funding in refining will develop the capability by 33% to 107 million tonnes each year quickly. The enlargement features a new 9-million tonnes-per-annum oil refinery at Nagapattinam in Tamil Nadu.
The vitality transition investments will go in direction of producing inexperienced hydrogen to switch gray hydrogen from fossil fuels presently utilized in refineries, renewable vitality capability addition, biofuels and carbon offset. The plan additionally embody charging community and battery swap for electrical automobiles.
Petrochemical integration, which is able to assist convert crude into chemical compounds which are constructing blocks for a wide range of merchandise starting from plastics to paints and cosmetics, “can potentially offset business uncertainties and amplify the value of every hydrocarbon molecule,” he mentioned.
IOC Board, he mentioned, has accorded Stage-1 approval for the establishing of Paradip petrochemical advanced in Odisha at an estimated value of over Rs 61,000 crore. This shall be IOC’s single-largest funding at a location.
The firm is collaborating with Italy’s Snam to discover the potential of changing the present pure gasoline pipelines for hydrogen transportation.
Vaidya mentioned the corporate continues to develop its retail community and has acquired websites to develop wayside facilities (WSA) on the Delhi-Mumbai expressway.