“India's domestic demand for petchem is one-third the global average. It is a peculiar situation: your rate of consumption of crude oil is growing at three times the global average and yet petchem demand is only one-third. Going forward, you will look at integrated refineries, refining in a traditional manner and also producing petchem,” said Puri.
India targets increasing refining capacity from the current 260 million tonnes per annum (mtpa) to over 300 mtpa, aiming to become a refining hub of the world. India currently has the fourth-largest refining capacity globally. Indian state-run refiners, including Indian Oil Corporation (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL), are increasing refining capacities of existing plants while also setting up greenfield refinery-cum-petrochemical plants. The greenfield refineries being built in India have a stronger focus on petrochemical production.
BPCL’s upcoming refinery, being set up in Andhra Pradesh, targets a petrochemical intensity index (PII) of 35 per cent. “To meet the expected surge in demand for refined products and petrochemicals, we are evaluating a proposal for a greenfield refinery-cum-petrochemical complex in Andhra Pradesh, designed with a high petrochemical intensity,” the company said in its annual report for 2024-25.
Meanwhile, HPCL said its greenfield refinery in Rajasthan’s Barmer, to be commissioned in the current fiscal 2025-26, would have a PII of 26 per cent. Indian Oil is also planning to increase its petrochemical production capacity from the current 4.3 mtpa to 13 mtpa by 2030. Capacity additions at other refineries across the country are also aimed at boosting petrochemical production.
On the third day of the IEW event on Wednesday, India and the US held a roundtable on the future of the bilateral energy partnership, where the two sides discussed further enhancing bilateral trade, including crude oil, LNG and liquefied petroleum gas (LPG). The US is India’s sixth-largest energy trade partner, with hydrocarbon trade of $13.7 billion in 2024-25.
At the roundtable, Indian companies expressed interest in equity participation in LNG liquefaction projects in the US, especially those under construction or nearing final investment decisions. The two sides also discussed partnering to develop the critical minerals sector.
 "Hardeep Singh Puri, Union Minister of petroleum and natural gas")