‘India to emerge as global petroleum refining hub’May 31st, 2008 - 8:39 pm ICT by admin
Mumbai May 31 (IANS) India is likely to emerge as a global petroleum refining hub in the next few years, Essar Oil CEO and managing director Naresh Nayar said here. Addressing a meet of industry analysts Friday, Nayar said that going by global trends, the growth in oil refining capacity was expected mostly in India, West Asia and China, with “Vadinar (Gujarat) probably emerging as the hottest refinery complex hub”.
Essar Oil’s Vadinar refinery complex began its commercial production in May. Nayar said that though the estimated capacity at peak performance is 10.5 million tonnes per annum, the target is to reach 34 million tonnes per annum in the next three years to four years. The company will soon raise loans to the tune of $6 billion to upgrade the capacity.
Nayar said: “There will be capital infusion of $2 billion by promoters in two tranches. The first part of $1 billion will be delivered next month, while the other part will be at the year end.”
“The debt will be about $4.5-5 billion and it will be raised through external commercial borrowings (ECB) and rupee loans,” Nayar said, adding that the lenders have “in principle committed $4.3 billion”.
Nayar said that while 65 percent of the production will be for domestic purposes “with special focus on public sector units (PSUs), the rest will be for exports. In fact we are looking at the markets in the US and Europe”.
“On the domestic front, we also intend to increase our retail outlets from the existing 1,274 to 5,000. At present only a handful of our existing outlets are in operation but with the commercial production already begun, we will gradually start their operations.”
Tags: capital infusion, domestic purposes, ecb, essar oil, external commercial borrowings, global petroleum, global trends, gujarat, india west, industry analysts, oil refining, peak performance, petroleum refining, promoters, public sector units, refinery, retail outlets, rupee loans, target, west asia