Beyond domestic consumption, India harbours ambitions of becoming a major refining hub in Asia. The Petroleum Ministry has articulated a vision where existing Indian refineries evolve into regional hubs, supplying petroleum products to other countries. This aspiration is supported by observations from industry experts, who note that refining expansions are largely absent in Western economies but are continuing robustly in regions where demand is growing, with India leading this trend. This drive to become a refining hub, coupled with efforts to reduce import dependence, reflects a broader push for greater strategic autonomy in energy. However, a closer look reveals that India’s refining strategy is not entirely divorced from its climate ambitions. Indian refiners are increasingly incorporating cleaner technologies and exploring diversification. This includes readiness for carbon capture, utilisation, and storage (CCUS), green hydrogen blending, energy-efficient process units, and digital optimisation tools. Initiatives like co-processing of bio-feedstocks and integrating renewable electricity into refining operations are also gaining traction. For instance, one of India’s major refiners has recently announced the piloting of India’s largest green hydrogen plant at its refinery in North India. The shift towards petrochemicals is another key facet. As global demand for traditional transportation fuels is expected to peak, refineries are being designed with enhanced petrochemical capabilities. This foresight ensures future demand for their products even as the energy landscape evolves. This strategic pivot offers a crucial pathway for refineries to remain economically viable in a lower-carbon future. The challenges are considerable. Securing capital for hydrocarbon projects is becoming more difficult due to global net-zero concerns, and land acquisition remains a significant hurdle for greenfield projects. Moreover, while operational emissions (Scope 1 and 2) are being addressed, the larger challenge lies in Scope 3 emissions – those generated from the use of refined products by consumers. Success hinges on a multi-pronged strategy, accelerating renewable energy deployment, investing in emerging technologies such as green hydrogen
and advanced battery storage, improving energy efficiency across all sectors, and fostering robust policy frameworks that incentivise sustainable practices and attract green finance. The paradox of refining capacity additions alongside net-zero targets is not a contradiction but a complex reality for a nation balancing rapid growth with climate responsibility. India’s journey will serve as a test case for how emerging economies can navigate this tightrope, demonstrating that energy security and climate action can, and indeed must, co-exist on the path to a sustainable future. The world will be watching to see if India can truly refine its energy future, achieving both prosperity and a greener tomorrow. For the Indian petroleum refining sector, a critical decision looms for companies aiming to boost capacity and meet future energy needs: whether to embark on a brownfield expansion or pursue a greenfield project. The editorial of the next issue of the magazine will aptly delve into the complexities of both approaches, highlighting their advantages and disadvantages, as well as the strategic considerations shaping the industry’s path forward. and meet future energy needs: whether to embark on a brownfield expansion or pursue a greenfield project ” “ For the Indian petroleum refining sector, a critical decision looms for companies aiming to boost capacity
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.
Refining India
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