Indian Oil eyeing Africa and Europe for petrochemical exports: CMD

Indian Oil aims to increase refining capacity to 98.4 MTPA by 2028

State-run Indian Oil Corporation (IOC) expects Africa and Europe to emerge as important markets for petrochemical exports, amid a significant expansion of its refining capacity, chairman and managing director (CMD), AS Sahney, told Business Standard.

 

India’s largest refiner, which operates a total capacity of 80.75 million metric tonnes per annum (mmtpa), mainly serves the domestic market, with exports contributing only a fraction to sales. IOC aims to increase refining capacity to 98.4 mmtpa by 2028.

 

“India is expanding its refining capacity. I will be (adding) around 18 million tonnes, which means 40 per cent of the expanded refining capacity will come from Indian Oil. Domestic (fuel consumption) growth is at 4-5 per cent. We have to go for exports, mainly diesel,” said Sahney. Exports accounted for only 5.5 per cent of IOC’s total sales in the first six months of the current financial year.

 

Among Indian refiners, private players — including Reliance Industries (RIL) and Nayara Energy — are the key exporters, while oil public sector undertakings (PSUs) sell fuel primarily in the domestic market.

 

Prime Minister Narendra Modi, while inaugurating India Energy Week (IEW) 2026, said India would soon have the largest refining capacity in the world. The country’s present oil refining capacity stands at around 260 mtpa, with efforts ongoing to boost it beyond 300 mtpa.

 

IOC is currently expanding the capacity of its key refineries. The capacity of the Panipat refinery is being raised to 25 mtpa from 15 mtpa, while the Gujarat Refinery (Koyali) is being augmented from the existing 13.7 mtpa to 18 mtpa. At Barauni, expansion to 9 mmtpa is in advanced stages of implementation, the oil marketing firm said. 

 

The company is also planning to increase its petrochemical production capacity from 4.3 mtpa to 13 mtpa by 2030. Sahney said Indian Oil is confident of navigating the current geopolitical challenges, by diversifying crude oil sources. It is looking beyond traditional suppliers for crude purchases, including Guyana and Brazil.