IOCL Re-Evaluates Greenfield Expansion Plans, Undertakes Strategic Decisions for Petrochemical Integration
- Journalist: Francis Stokes
Indian Oil Corporation Limited (IOCL), country’s largest refining giant announced the re-evaluation of all its expansion plans, under the stress of wavering fuel demand due to Coronavirus pandemic. The company on Monday, also sanctioned the integration plan for its lube and petrochemical facilities in Gujarat with an estimated expenditure of INR 178250 Million. In support of the project, the refiner stated that the integration of lube oil unit (230KT) and polypropylene unit (500 KTPA) will provide a needed push to the petrochemical and specialty chemical integration index by around 20.7 per cent and will assist the company in protecting its margins. This project is in line with the strategic portfolio of the company which desires the petrochemical integration to be around 14 to 15 per cent of the Petrochemical Intensity Index by the end of 2030. As per the Chairman, the company is presently analysing the fluctuating demand and supply fundamentals as well as the prospects for the greenfield projects. Over the ripple effects faced due to the pandemic, the refiner stated the demand pattern has not been destroyed but disrupted. However, ease in lockdown restrictions has provided a month on month recovery after April whereas the increasing preference for personal commutable provided an uptick on the petrol demand. As forecasted by the top executives of IOCL, the fuel demand in the country is likely to return to pre-lockdown level in a span of 3 months. Furthermore, the company intends to establish hydrogen storage solutions and fuel cells to brace green mobility in the coming years.