India will continue to build new crude oil refineries in order to ensure supply chain security even as Western nations shut processing units, Prime Minister Narendra Modi said.
“No new refinery has come up in the US in the last five decades and capacity in Europe has also been constantly declining,” Bloomberg quoted Modi as saying on Saturday, as he inaugurated the country’s first new refinery in a decade. He said India will continue to expand capacity.
The 180,000-barrels-a-day greenfield refinery in the heart of Rajasthan’s Thar desert, which has 2.4 million tons a year of petrochemical capacity and was built at a cost of $8.3 billion, is likely to be the only new refinery commissioned globally this year, according to BloombergNEF analysts.
The facility expands India’s refining capacity at a time when much of the West is shutting plants and investment elsewhere has slowed, highlighting New Delhi’s strategy of betting that robust domestic fuel demand, slower-than-expected electric-vehicle adoption and exports of refined products will continue to justify billions of dollars in new oil-processing infrastructure.
Meanwhile, traders have sold gasoline produced by Indian refiner Nayara Energy to Russia, which is grappling with fuel shortages triggered by Ukrainian attacks on its energy infrastructure, two sources with direct knowledge of the matter said on Thursday.
Reuters reported on Wednesday that Russia had begun seaborne imports of gasoline from India, without naming the supplier.
Reuters said that at least 60,000 metric tons of gasoline had been dispatched from India to Russia, citing an industry source, with another source saying that two tankers, carrying 30,000 to 40,000 tons each, had been sent.
