India, the world's third largest oil importer and consumer, is expected to rely on fossil fuels until at least 2040 and is positioning itself as a refining hub, Oil Minister Hardeep Singh Puri told Reuters on Tuesday.
As global refining centers downsize as the energy transition progresses at an unpredictable pace, India's rising daily crude use means the country will rely on fossil fuels until at least 2040, a Mr. Puri said on the sidelines of a refining conference in Bengaluru.
“Our existing refineries will increase in terms of capacity and will also become regional hubs in terms of supply to other countries,” Mr Puri said.
India, the world's third largest emitter of greenhouse gases, has committed to achieving net zero carbon emissions by 2070. It has set a target of producing 500 gigawatts (GW) of renewable energy by 2030.
Mr. Puri recalled that India was looking to increase its refining capacity by 81% to 450 metric tonnes per annum (mtpa), from 249 mtpa, or around 5 million barrels per day (bpd), currently. He did not provide a timetable.
The minister said there were “robust discussions” between public and private refiners to exceed 310 mtpa, which could be achieved before the 2028 deadline.
Small refineries will no longer be economically viable, Mr Puri said.
Bharat Petroleum Corp Ltd (BPCL) plans to build a new 180,000-300,000 bpd oil refinery in southern Andhra Pradesh state or northern Uttar Pradesh state.
Meanwhile, Hindustan Petroleum Corp Ltd (HPCL) is expected to commission its 180,000 bpd Barmer refinery in the desert state of Rajasthan late this year or early next year .
