HPCL Decides to Start Work at Rajasthan refinery
Increasing number of refineries
coupled with expansion of existing refineries will fulfill the demand for LPG
and other petroleum products in India.
India: In 2013, HPCL, a state-owned
oil and natural gas company in India, had decided to construct a refinery in
Balmer, Rajasthan where a MoU was signed between HPCL and Rajasthan government.
The estimated cost of the project was around USD5.79 billion in 2013 and now it
has increased to between USD6.37 billion and USD6.52 billion. Half of the crude
required for the plant will be supplied by Cairn India and the rest will be
imported. Currently, HPCL owns two refineries in Mumbai and Visakhapatnam and
the project in Rajasthan is expected to increase demand in northern India.
TechSci Research depicts that rising demand
from transport segment and increasing consumption of LPG to produce various
chemical components such as propylene, ethylene, butadiene, etc., is
anticipated to boost demand for LPG in the country in coming years.
Furthermore, increasing prices of naptha, rising LPG imports and expanding
distribution network are anticipated to fuel consumption of LPG in India during
FY17-FY26.
According to released report by TechSci Research, “India LPG Market By End
Use Segment (Residential, Commercial, Industrial, etc.), By Source (Crude Oil
Distillation, NGL & LNG Fractionation, etc.), Competition Forecast and
Opportunities, FY2012 - FY2026”, LPG
consumption in India is forecast to surpass 35 MMT by FY26. North region
comprises several LPG bottling plants, oil refineries and petrochemical plants.
Moreover, residential segment accounted for a lion’s share in India LPG market
in FY16, and the segment is anticipated to continue dominate the market through
FY26. In order to increase availability of LPG in the country and foster
competition, private sector was allowed to market LPG from April 1993, by
decentralizing imports of such petroleum products. This is anticipated to boost adoption of LPG
in various end user segments across the country.