Integration of refining with petrochemicals Unique role of the hydroformylation process in modern petrochemical production and emerging trends as refineries adapt to evolving market demands Raj Kumar Das, Chanchal Samanta, Bharat L. Newalkar, and Chandrasekhar Narayanamurthy Corporate R&D Centre, Bharat Petroleum Corporation Limited
T he global energy system has entered a period of unprecedented transformation since the Paris Agreement was adopted in 2015. This shift is driven by international climate commitments, growing recognition of the need for sustainable development, and a collective effort to limit global warming to well below 2°C, ideally 1.5°C, above preindustrial levels. A peak in fossil fuel demand, particularly in the transportation sector, is anticipated, with a gradual decline as low-carbon alternatives gain ground. India’s refining sector1 has seen unprecedented growth over the past three decades, with capacity expanding from 62 MMTPA in 1998 to more than 255 MMTPA, positioning the country as the fourth-largest refining hub globally. Supported by 23 refineries – including 19 public sector undertakings (PSUs), three private refineries, and one joint venture – India has also emerged as the seventh-largest exporter of refined products. Planned expansions aim to reach refining capacity to 300 MMTPA, reinforcing the sector's global significance. India’s refining sector has also contributed significantly 9,000
2022-23 (as per first revised estimates). This has also contributed to an increase in All India GDP from Rs. 99.44 lakh Crore to Rs. 269.49 lakh Crore in the corresponding period, at current prices. Despite this remarkable progress, the refining sector faces emerging challenges due to the accelerating electrification of transport, increased adoption of ethanol-blended fuels, compressed natural gas (CNG), and hybrid vehicles, all aimed at reducing carbon footprints. Gasoline and diesel will face the biggest impact as the transportation sector is shifting toward electric, hybrid, hydrogen, and alternative fuels, coupled with efficiency improvements, changing mobility patterns, and infrastructure developments like freight corridors, metro networks, and railway electrification. As shown in Figure 1 , transportation fuel demand is projected to remain relatively flat, highlighting a structural shift in long-term consumption patterns and signifying the need for the refining sector to evolve beyond traditional models of operation. Integration of refining with
to the country’s economic development. As per the information provided by the Ministry of Statistics and Programme Implementation, the gross value added (GVA) of the manufacture of coke and refined petroleum products increased from Rs. 1.56 lakh Crore in 2012- 13 to Rs. 2.12 lakh Crore in
7,500
6,000
4,500
3,000
Petrol (TMT) Diesel (TMT)
1,500
0
2019 2020 2021 2022 2023 2024 2025 2,900 3,100 3,400 3,600 3,767
Petrol (TMT) 2,736
3,700 8,500 8,571
Diesel (TMT) 7,834 7,900 8,000 8,200 8,400
Year on year demand until 2025
Figure 1 Demand growth of transportation fuel – diesel and petrol
Refining India
17
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