By Ben DuBose
On-site interview with A.S. Basu of Indian Oil
MILAN, Italy -- Indian Oil is steadily increasing its
distillate yields as it targets growth in domestic and global
consumption for diesel and other distillate fuels, a company
executive said on Thursday.
Once multiple ongoing upgrader projects are concluded, Indian
Oils distillate yield will increase to 79% by 2016, up
from around 76% today and 72% in 2006, according to A.S. Basu,
executive director of operations in the refineries division of
company is striving to achieve distillate yields of as much as
84% in future years, he said.
We are continuously striving to be ahead of the
competition, said Dr. Basu. Were looking at
new projects operating at high
Over the next 10 years, Indian high-speed diesel (HSD)
demand is projected to grow by 5.5%/yr, buoyed
by expanding transportation fuels demand. That contrasts with
an expected 0.1%/yr decline for residual fuels, Dr. Basu
To reach that demand and expand its distillates production,
Indian Oil will look to slurry
hydrocracking, he explained.
The company believes slurry hydrocracking will enable
improved integration with the gasification
process, lead to maximum naphtha and diesel yield from vacuum
residue, and further reduce or eliminate black oil/PetCoke.
The refinery expansions will also target global
demand for Indian exports, Dr. Basu said. Since 2002, India has
transformed from a net importer of petroleum products into a
Based on the expansions, the company has seen a
continuous increase in the yearly gap between its refining capacity and domestic
That gap, which was at 42 million tons in 2008, has nearly
doubled to 78 million tons at present and could double to over
140 million tons by 2016.
As such, global exports will be needed to fill that gap.
The expansion of our refineries allows
us to generate a significantly greater quantity of
product, he said. We are looking to global
Indian Oil operates 10 of the 22 domestic refineries in India. It has a group refining capacity of 1.3 million bpd
and a 31% share of the refining market, each the largest in
the country for a single producer.
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