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IndianOil refineries throughput crosses 80% commensurate with rising products demand
The crude oil throughput of IndianOil refineries crossed 80% as on date, with consumption of all petroleum products put together almost doubling in May ’20 as compared to April ’20 levels.
The Corporation has been able to gradually raise the throughput of its refineries from about 55% of rated capacity in the beginning of May ’20 to about 78% by the month end, and 81.5% as on date. Capacity utilisation of the refineries had dropped to almost 39% in the beginning of Apr.’20.
With Guwahati Refinery coming online after a prolonged maintenance shutdown in preparation for production of BS-VI fuels, IndianOil refineries are geared to operate at about 85% of their capacities this month, commensurate with rising products demand in the market.
While the consumption of all petroleum products put together almost doubled in May ’20 compared to April ’20 levels, growth of petrol was higher at about 70% and diesel at 59%. Compared to May ’19, or the early months of the current year prior to the lockdown, the growth percentage has still to catch up by 24% to 26% for all products. In the case of LPG, with the Corporation rolling out about 25 lakh cylinder refills a day, the average backlog is less than a day.
Along with growing consumption of white oils petrol and diesel (except ATF, which is still lagging at about 24% of normal level), the demand for black oils and specialty products like fuel oil, bitumen, petcoke and sulphur has also shown marked improvement, facilitating increase of refineries throughput.
With the gradual lifting in lockdown restrictions, several downstream industries in the petrochemicals sector have resumed operations from late April ’20 and product evacuation from refinery stocks has increased gradually. With increase in demand, IndianOil’s Naphtha Cracker at Panipat is now operating at full capacity, along with downstream units for production of polypropylene, HDPE, LLDPE and MEG, together with PX/PTA production plants, also at Panipat. The polypropylene plant at Paradip Refinery and the LAB unit at Koyali Refinery have also gone online.
IndianOil is on track to spend the approved capital expenditure of Rs. 261.43 billion for 2020-21. Work on almost 200 major projects (costing above Rs. 10 million) has restarted on ground. Major projects on which work has resumed include the Paradip-Hyderabad products pipeline; augmentation of Paradip-Haldia-Durgapur LPG pipeline and its extension to Patna and Muzaffarpur; and the Ennore-Tiruvallur-Bangalore-Pondicherry-Nagapattinam-Madurai-Tuticorin R-LNG pipeline. Also despite the lockdown, pipeline laying and other activities under city gas distribution resumed in 11 Geographical Areas. Work has also restarted on other projects like grassroots LPG bottling plants, upcountry terminals/depots and additional facilities/tankage at existing bulk storage locations.
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