Hindustan Petroleum to own 25% stake in proposed $30bn oil refinery in India
India's state-owned oil and natural gas company Hindustan Petroleum is planning to acquire a 25% stake in the proposed oil refinery to be built in the country's western coast.
The proposed 60 million tonnes refinery will cost approximately $30bn.
Hindustan Petroleum chairman Mukesh K Surana was quoted by the Press Trust of India as saying: “HPCL Board at its meeting today decided to participate in the 60 million tonnes a year refinery in Maharashtra. We intend to put in 25% equity.
“We are open to getting a strategic partner but that will be decided later. For now, we have decided to participate in the project with a 25% stake.”
Indian Oil Corporation will own a 50% stake in the proposed refinery. The remaining 25% stake will be held by Bharat Petroleum.
This refinery is scheduled to be built in two phases.
The 40 million tonnes phase 1 is expected to be completed within five to six years from the date of land acquisition. This phase will see an aromatic complex, naphtha cracker and polymer complex being developed.
The refinery requires around 12,000-15,000 acres of land. Multiple sites are currently being assessed.
In the second phase, a 20 million tonne refinery will be developed. This phase is expected to cost approximately $8bn.
The state-owned oil companies are planning to develop a refinery in the west coast as most of its refineries are located in the north.
This refinery will produce petrol, diesel, LPG and ATF and develop raw materials for petrochemical plants.
After completion, the proposed facility will become the largest refinery in India, replacing the factory owned by Reliance Industries.