Indian refiners are gearing up to shift their crude oil import mix in favor of lighter grades, more to meet the growth in demand for motor fuels in Asia’s third-largest economy, company officials and analysts said. Produces petrol.
Refiners in the world’s No. 3 oil importer and consumer will increase imports of petrol-yielding crude from the United States and West Africa, while cutting heavily sourced grades from the Middle East that produce more moderate distillates such as diesel and kerosene. do, he said.
The move coincides with an earlier push to reduce India’s dependence on Middle East crude to enhance energy security.
“Demand for petrol is very, very strong, while diesel is lagging behind,” said Amrita Sen, head of research, Energy Aspects.
State refiners are also planning to increase the share of spot purchases in their imports to 37% in the fiscal year ending March 2022,
“Refiners are shifting the yield further to petrol… I expect West African, petrol-rich crude to flow into India, less sour crude going there.”
Indian refineries are mostly designed to maximize diesel production from Middle Eastern oil, as government-controlled prices have made Middle Distillate the preferred fuel for industries and trucking firms.
But slashing prices between petrol and diesel, and a consumer switch to private vehicles instead of diesel-powered public transport since the start of the coronavirus, is helping fuel consumption of petrol.
MK Surana, Chairman, Hindustan Petroleum Corporation said, “The demand growth in petrol is much higher than diesel due to changing consumer preferences on personal use vehicles and better power supply to reduce the use of diesel gensets.”
Credit rating agency Moody’s India unit ICRA expects India’s petrol consumption to rise 14% to a record 31.9 million tonnes (739,000 bpd) in the fiscal year ending March 2022, while diesel consumption is expected to pick up in the fourth quarter or so. have hope. Years to recover to pre-pandemic levels.
Tarun Kapoor, top bureaucrat in the oil ministry, said earlier this month that India’s refining system configuration would be different, focusing on higher production of petrol and liquefied petroleum gas.
Improved road infrastructure has also reduced distance and travel time for heavy vehicles, thereby reducing diesel consumption.
Also, Indian Railways, a major diesel buyer, is cutting down on diesel usage as it plans to electrify its entire broad-gauge network by 2023.
refined taste
An official of Bharat Petroleum Corp Ltd said, “India’s demand for petrol will continue to rise… so our raw diet will change accordingly and move towards lighter grades.”
Crude with API gravity greater than 40 – such as US West Texas Intermediate (WTI) Lite, WTI Midland, Nigeria’s Ekpo and Kazakhstan’s CPC Blend – is used to maximize petrol production at refineries equipped with fuel-upgrading units such as catalytic reformer. can be done for. , he said.
And Angolan crudes such as Palanka, Kishanje and Azerbaijan’s Azeri Light that produce more vacuum diesel will be in line with liquid catalyst cracker refineries, the BPCL official said.
A company official said the country’s largest refiner Indian Oil Corp is in similar discussions to change its crude oil blend.
A company official said that Indian Oil Corp is in similar discussions about changing its crude oil mix.
State refiners, which mostly buy lighter grades through spot tenders instead of term contracts, also plan to increase the share of spot purchases in their imports to 37% in the fiscal year by March 2022, up from 22 in 2018/19. % Was. Another official at a refinery in the state.
The officials declined to be named as they are not authorized to speak to the media.
A BPCL official said, “Most refiners cannot change their plant configuration or set up additional blending facilities overnight, so the easiest way to maximize petrol production is to convert the crude mix to a lighter grade. be given.”
Sen of Energy Aspect said that with the refocus, West Africa’s share of India’s market may increase from around 10%-17% to 20% in the next few months, while the Middle East’s share is down from around 65% to 60%. might fall.
0 notes
“It’s not particularly good for Middle East suppliers and I think West Africa should benefit,” Sen said.
for the latest auto news And ReviewFollow carandbike.com Twitter, Facebookand subscribe to our youtube Channel.
.