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Saudi Aramco Eyes India’s Refining Sector for Strategic Partnerships

2025-04-17

Saudi Aramco has renewed its interest in India’s expanding refining sector, viewing it as a strategic growth opportunity. With Bharat Petroleum Corporation Ltd (BPCL) and Oil and Natural Gas Corporation (ONGC) planning new refineries, fresh investment avenues are opening up for the Middle East’s largest oil exporter.

Although the company has not confirmed specific investment plans, it reiterated that India remains a priority market. Saudi Arabia was the third-largest supplier of crude oil to India in 2024, exporting 625,000 barrels per day.

According to S&P Global Commodity Insights, India plans to raise its refining capacity from 258.1 million tonnes to 309.5 MnT by 2028. The country may require an additional 400,000 barrels per day of capacity by the early 2030s.

Past setbacks, including the delayed 60 MnT Ratnagiri refinery project and the cancelled US$15 bn Reliance-Aramco stake deal, have not slowed down India’s efforts.

Major expansion projects are ongoing at IOC, BPCL, and HPCL, with a focus on integrating petrochemical units. HPCL Rajasthan Refinery, for instance, is building a nine MnT facility with a petrochemical intensity of 26 per cent, one of the highest in the country.

Source: Economic Times

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