Towards a future-proof strategy The decision to pursue a brownfield or greenfield refinery expansion is a complex strategic choice, heavily influenced by a multitude of factors, including financial viability, market timelines, land availability, and technological adaptability. The current trajectory, heavily favouring incremental brownfield growth, is a pragmatic short-term strategy to bridge the immediate demand- supply gap. But for India to solidify its position as a globally competitive major refining hub and meet its long-term climate goals, a shift toward adding smart capacity is crucial. Simply adding barrels is no longer enough; the capacity must be resilient and adaptable. This requires two key sovereign policy interventions to harmonise the two approaches: De-risking greenfield investment: The government must streamline and expedite land acquisition processes and introduce clearer risk-sharing models for these capital-intensive, long-gestation projects. Mandating future integration : New capacity, whether brownfield or greenfield, must be designed with the explicit capability for seamless integration with green energy vectors (such as green hydrogen, biofuels, renewables) and provisions for carbon capture and storage (CCS), aligning the industry’s growth with the 2070 net-zero targets. India needs strategic, future-proof capacity that ensures both energy security and global technological leadership, demanding a delicate balance between the logistical efficiency of brownfield expansions and the transformative, technological potential of greenfield complexes. Manoj Sharma Manoj Sharma is an executive leader with more than 35 years of experience in petroleum refining, petrochemical operations, and strategic management. He has proven expertise in refinery optimisation, green initiatives (CCUS, green H₂, biofuels), crude oil trading, risk management, and digital transformation. He has a strong background in international business, process engineering, and corporate governance as a board director. He holds an International MBA from the University of Ljubljana, Slovenia, and a BE in chemical engineering from Punjab University, Chandigarh.
and severely restricts access for construction vehicles and large equipment. Consequently, brownfield projects frequently experience scope creep, cost overruns, and protracted delays, often stemming from the complex integration (or ‘tie-ins’) of new pipes and control systems into ageing, obsolete infrastructure. Dealing with historical contamination and legacy design inefficiencies further complicates these projects, sometimes negating the initial cost advantage. Strategic value and high risk of greenfield projects Conversely, greenfield projects – building an entirely new refinery complex on undeveloped land – offer unparalleled strategic advantages. By starting from a blank slate, developers can design highly integrated refinery-petrochemical complexes that utilise the latest, most efficient technologies. This technological freedom maximises complexity and conversion capability, enabling the refinery to process cheaper, heavier crudes and produce high-value petrochemical intermediates, thereby ensuring superior long-term GRMs and greater resiliency against market volatility. The scale achievable through greenfield construction, such as the once-proposed 60 MTPA West Coast Refinery, provides world-class economies of scale and operational efficiency, setting up the asset for decades of low-cost operation. The strategic upside, however, is offset by immense execution risk. The primary bottleneck in India is consistently land acquisition. Finding contiguous, suitable land parcels large enough for a multi-billion-dollar complex, often 1,500 to 2,500 acres, has repeatedly stalled major projects. The high upfront Capex and the lengthy gestation period also increase financial risk aversion, especially in the face of accelerating global energy transition policies and India’s own ambitious Net Zero 2070 commitment. The recent decision by a major refiner to proceed with a new greenfield project in Andhra Pradesh on the East Coast of India, while showing confidence in long-term demand, has been framed by industry commentators as potentially ‘India’s latest greenfield refinery project’, underscoring the immense political, regulatory, and financial hurdles inherent in this route.
Refining India
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