Mass transfer technologies for continued growth Technologies for the effective removal of H 2 S, mercaptans, and related impurities are fundamental to the performance of India’s refining sector
Patricia Forero Merichem Technologies, LLC
I ndia’s oil and gas refining industry is a vital component of the country’s economy, playing a crucial role in meeting its increasing energy demands. The industry has a rich history, beginning with the establishment of the first refinery in Digboi, Assam, in 1901. In 1991, a new economic policy was established that opened the nation’s refining sector to private investment and foreign collaborations. Today, India has a total refining capacity of approximately 256.8 million metric tons per annum (MMTPA), making it the world’s fourth-largest refiner of oil and gas. India’s refining industry is comprised of Public Sector Undertakings (PSUs), which are government-owned companies that dominate the sector, giant private sector companies, and one joint venture refinery. The government plans to increase its capacity to 310 MMTPA by 2028, an expansion driven by robust domestic demand growth and significant reforms to encourage private and foreign investment in the sector. India refines imported and domestically produced crude, with a significant portion of the imported crude sourced from the Persian Gulf. Referred to as ‘Indian Basket crude’, the imported crude is a weighted average of medium sour crude from Dubai, sour crude from Oman, and Brent’s sweet crude. India is also a significant exporter of refined petroleum products, particularly transportation fuels, to Asia and the Atlantic Basin and a global swing supplier of diesel and jet fuel to European markets since the loss of Russian product exports in 2022. Its expanding refining capacity is impacting global crude flows, particularly from the US Gulf Coast, which has strengthened the Indo-US trade relationship.
India is continuing to pursue its path as a refining powerhouse and is also expanding its capabilities to become a petrochemical hub. To achieve this, the country is exploring integrated projects that can produce both fuels and petrochemicals, allowing for adjustments in output according to market demands. It can then build large-scale projects that can compete in the global market and generate export revenues. India’s refining sector has faced challenges due to infrastructure deficits, geopolitical risks, exacerbated by the Russia-Ukraine war, and some unfortunate policy paralysis. Not least of all, the sector is governed by a myriad of comprehensive and complex regulations focused on refining, storage, transportation, and marketing of petroleum and natural gas. Key legislation includes the Oilfields (Regulation and Development) Act, 1948, the Petroleum and Natural Gas Rules, 1959, and the Petroleum and Natural Gas Regulatory Board Act, 2006. Its stringent environmental regulations require refineries to invest in advanced technologies to reduce greenhouse gas emissions and produce cleaner fuels. India takes its regulations seriously. The Petroleum and Natural Gas Regulatory Board (PNGRB) can adjudicate complaints and resolve disputes related to refining, processing, storage, transportation, marketing, and distribution, and impose penalties for infractions. A fine of up to INR 250 million can be levied for contravening the directions of the PNGRB. Continuing contravention is punishable with an additional fine of up to INR 1 million for every day it persists. Wilful failure to comply is punishable with a fine of up to INR 10 million,
Refining India
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