IndianOil : ‘Pehle Indian,Phir Oil’

By Sukla Mistry | Director (Refineries) | Indian Oil Corporation Limited

India is one of the fastest-growing major economy in the world, and as the nation enters the ‘Amrit Kaal’ – the journey towards its centenary as a modern, independent global power of relevance, backed by robust democracy and strong partnerships, it is more than ready to be one of the top three economic powers in the world. Energy, being one of the main ingredients for maintaining a high-trajectory growth, will continue to play a pivotal role in fuelling the dreams and aspirations of billions of countrymen. 

The energy map of India is governed by the fact that with around 18% of world’s population, we only use around 6% of the world’s primary energy. The per-capita energy consumption is around 0.6 tonnes of oil equivalent which is 1/3rd of the global average. According to the India Energy Outlook reports, the primary energy demand is expected to nearly double, as the country’s GDP is expected to increase to US$ 8.6 trillion by 2040.

As one of the topmost energy solution providers of India, Indian Oil Corporation Ltd. is playing a very important part in energising the Indian economy. Even amidst the volatility in the global energy sector, IndianOil stands as a beacon of resilience, driving the nation’s progress with unwavering dedication. With an ideology of being ‘Pehle Indian, Phir Oil,’ IndianOil has always prioritised the well-being and progress of the nation above all. Taking pride in its unwavering commitment to serve the nation 24×7 and contribute to its energy security, a new core value, ‘Nation-First,’ was introduced alongside the existing values of Care, Innovation, Passion, and Trust during the first IndianOil Values Day celebrated on June 30, 2023.

Supplementing this commitment of Nation-First, IndianOil continues to achieve best-ever operational performance, deliver on expectations, and set new industry benchmarks. With a share of approximately 32% of India’s refining capacity by IndianOil Group of companies, the Corporation has been fuelling the Government of India’s vision of achieving self-reliance in oil refining and marketing.

IndianOil’s strength stems from its 10 operating refineries across the length and breadth of the nation.  To meet the growing demand for petroleum products in the country, IndianOil’s Refineries Division has already chalked out an ambitious growth agenda of achieving 107 MMTPA group refining capacity from the existing 80.55 MMTPA by FY 2026-27.Presently, 26 projects worth approximately Rs. 1.1lakh crores are being executed in the Division, which includes expansion projects at Barauni, Gujarat, Panipat, Guwahati and Digboi Refinery. These expansions are coupled with integrated petrochemical units, for achieving better operational efficiency and improved profitability.

Petrochemicals demand growth is projected at 5-6% CAGR over the next 15 years, thus the country will need create world-scale petrochemical assets by 2030 to meet this domestic demand. Recognizing this opportunity, IndianOil is strategically integrating downstream operations and increasing global footprints through systematic expansion of customer base and innovative supply logistics. Investments have been ramped up investment in petrochemicals with a target to raise Petrochemical Intensity Index to 15% by 2030 from current 5.9%. The focus will be on capacity augmentation, expanding the bouquet of value-added petrochemicals and forward integration into textiles by producing polyester yarn and fibre, giving the Corporation greater exposure to diverse markets like plastics & consumer goods. Recently the IndianOil Board accorded ‘Stage-I’ approval for setting up Paradip Petrochemical Complex at Paradip, Odisha. Aligned with GoI’s vision of Purvodaya, for accelerating and fuelling development and prosperity in Eastern India, this mega project is the largest-ever investment of IndianOil at a single location, marking IndianOil’s major contribution towards India’s self-reliance in the petrochemical sector.

The Paradip Petrochemical Complex will include a world-scale cracker unit along with downstream process units for producing around 3 MMTPA of petrochemical products, including Poly Propylene, High Density Polyethylene, Linear Low-Density Polyethylene, Poly Vinyl Chloride, Butadiene, etc. It shall also facilitate production of niche chemicals and petrochemicals like Phenol and Iso-Propyl Alcohol.  The project is based on utilisation of captive streams from IndianOil refineries such as Naphtha & Ethane from Refinery Off Gases. Along with the already existing petrochemical footprint of Poly Propylene & Ethylene Glycol petrochemicals units and the upcoming PX-PTA complex at Paradip, this Petrochemical Complex will further strengthen the refinery & petrochemicals integration at IndianOil. This megaproject, along with others on the anvil like the Panipat Naphtha Cracker Phase II-expansion, Styrene Unit at Panipat and PVC Project at Gujarat Refinery will be a significant leap of IndianOil, not only strengthening its core business but also aiding the Corporation to maintain its numero uno position in the Indian oil & gas industry.

Foreseeing the paradigm shift in the global energy landscape, IndianOil’s Refineries Division is also keeping pace with the transformation in the energy landscape, with emphasis on enhancing greener product slate like bio fuel blending, use of recycled waste, promoting natural gas, fuel cells, creating e-mobility infrastructure, renewable energy etc. Energising the Corporation’s vision for improved and newer bouquet of product offerings, the Division is focussed on offering differentiated fuels to transition IndianOil into a holistic energy solutions company.

Niche product like XP100, India’s only 100-Octane fuel, Premium Grade Low Sulphur Heavy Stock (LSHS) to meet increase in demand of LSHS phasing out of normal Furnace Oil by NGT, special winter-grade diesel meeting BS-VI & Diesel High sulphur Pour Point (DHPP) specifications for both civil and military usage have been introduced in the domestic market. IndianOil’s Gujarat & Haldia Refineries also commenced delivery of IMO2020-compliant Low Sulphur Furnace Oil with 0.5 per cent sulphur as ‘marine fuel’ at Indian ports in October 2019, much before the IMO deadline of January 1, 2020. Supporting the Indian Defence Forces, world-class High Flash High-Speed Diesel (HFHSD-IN512), a special class diesel which exceeds NATO grade specifications for use in ships and vessels was developed for the Indian Navy. The product is being supplied from Paradip & Haldia Refinery. Furthermore, with the indigenous production of Aviation Gasoline 100 Low Lead (AVGas 100LL) fuel from Gujarat Refinery, India joins a select league of nations like US, Netherlands, UK, France, Sweden & Spain to produce Aviation Gasoline. AVGas is a premium, high-valued product, specially designed for piston engine aircrafts, which was being imported for decades in India. IndianOil has also pioneered the successful production of the Reference Gasoline and Diesel Fuels for the first time in India. These Reference Fuels represent niche, premium, high-value products crucial for the calibration and testing of vehicles by Auto OEMs and agencies like International Centre for Automotive Technology and Automotive Research Association of India, engaged in the testing and certification of vehicles. In addition to these differentiated product offerings, IndianOil is continually endeavouring to offer sustainable products and towards that green product like SERVO Raftaar, Xtra Tej, XP95, Xtragreen, IndiGreen etc., have been introduced in the market to help mitigate carbon emissions.

IndianOil refineries have achieved highest-ever annual crude processing of 72.4 MMT in FY 22-23. Scaling towards the ambitious growth agenda of the Corporation, with a firmed-up action plan across all business processes, a multi-dimensional Refinery Performance Improvement Programme which primarily focusses on improving the refinery performance in areas like distillate yield improvement, energy reduction, hydrogen management, etc., with a prime objective of identifying quick-win solutions has been implemented at Paradip, Panipat & Mathura Refineries. Digital interventions like Energy Management Dashboard, AI-based Exchanger Cleaning Schedule, etc. have been implemented that lay a strong emphasis on reliability of plant operations.

The Division is also on the lookout for best-in-class practices & technologies to enhance operational efficiencies. Understanding that digitalisation shall play a huge role in meeting the future challenges, integrated planning tools for integrated business process planning, refinery production scheduler, advanced refinery production planning, several mobility-enabled digital maintenance workflows, shutdown management tool for reducing unplanned downtime & introduced remote monitoring of critical equipment such as gas turbines have been adopted at IndianOil’s Refineries.

Keeping in view the multitude of projects worth thousands of crores being undertaken year after year, a live Central Project Monitoring Cell has been installed at Refineries Division Headquarters to ensure continuous real-time monitoring of projects across all refineries. This also facilitates monitoring of major construction milestones of projects, assessment of resource deployment and site conditions. Also, the e-Pariyojana, an end-to-end project monitoring software that has been implemented across the Corporation, enables monitoring of crucial aspects of project management such as progress statistics, expenditure reporting, milestone alerts, areas of concern, risk management, HSE management, vendor expediting, including job progress at vendor shop. The mobile app of e-Pariyojana enables one-touch monitoring of projects anytime from anywhere.

Significant progress has also been made in utilising bots and drones for improved monitoring and worker safety across all refineries. Unmanned Aerial Vehicles / drones are being utilized for internal and external inspection of flare and static equipment through thermography, IR, and high-resolution visual feeds. These pioneering operational changes through digitalization & innovative solutions will serve as important markers for IndianOil refineries in meeting future challenges.

These innovative digital interventions have improved operational availability & reliability, in addition to exponentially increasing the safety quotient inside the refineries for all stakeholders. To augment the capabilities of front-line officers as well as workmen, a unique approach of reverse training on safety, reliability, Standard Operating Procedures, emergency handling, etc., has been adopted. Further, the National Initiative for Promotion of Upskilling of Nirman workers is also being implemented at Paradip and Panipat project construction sites. 

Environment sustainability stays at the centre of business decisions. Even before environment became a buzzword, IndianOil has been conducting its business with strong environment conscience ensuring sustainable development. IndianOil refineries at various locations have greenbelts sprawling in a combined area of approx. 800 hectares. The consistent good quality of treated effluent and the lush green eco-parks have developed into a tranquil and un-disturbed natural habitat, inviting varieties of winged visitors to our refineries. To keep in check soil erosion, the refineries continually plant trees around its vicinity and, nearly 53 lakhs species of trees have been planted till date.

All refineries are equipped with state-of-the-art systems and technologies for very efficient environment management system, meeting the stringent mandatory standards. IndianOil Refineries are equipped with online analysers to monitor SOx, NOx, CO, PM levels as per the EP standards as gazetted by MoEFCC for Gas fired, liquid fired and mixed fired furnaces. While continuous Ambient Air Quality Monitoring and data transmission to CPCB under National Clean Air Programme is ensured, Leak Detection and Repair Program are also in place along with vapour recovery systems for minimising hydrocarbon emissions.

IndianOil is perhaps the first Corporation in India to resolve to achieve net-zero operational emissions targets by 2046. IndianOil has adopted a multi-pronged approach to fulfil its earnest commitment & establish IndianOil as a leader in environment sustainability. The impressive green roadmap involves forging effective collaborations to nurture commercial-scale green businesses. IndianOil has collaborated with ReNew Power Private Limited (ReNew) and Larson & Toubro Limited (L&T) for Green Hydrogen projects in refineries. A 10KTPAGreen Hydrogen capacity envisaged at Panipat Refinery; a demonstration facility for hydrogen dispensing at Gujarat Refinery has been installed using the hydrogen from the refinery unit. IndianOil Refineries being the fulcrum of IndianOil business and the 2G Ethanol plant using paddy straw and world’s first 3G Ethanol plant using refinery off gasses at Panipat Refinery are piloting and strengthening IndianOil’s green resolve and fuelling IndianOil’s Net Zero initiatives. 

Aligning to the green growth agenda, IndianOil refineries are infusing energy for increasing the portfolio of green fuels, biofuels, reducing value chain emissions, use of renewable power such as on-grid and off-grid renewable energy, use of natural gas, and investment in green hydrogen generation. Avenues for developing technologies for advanced biofuels, and Carbon Capture Utilization & Storage are also being explored. Parallelly working on meeting the other mandatory advisories, IndianOil is also gearing up for meeting 20% ethanol blended fuels by 2025.

All around the world, the energy sector is playing the critical role in supporting economies, and growth and development. Fuelling the present and ever-increasing energy demand of the nation along with sustainable growth is the primary thrust area for IndianOil. As the nation’s leading refiner, IndianOil Refineries shall continue to redefine the Indian skyline with spectacular growth; continuous upgradation with capacity augmentation; and adoption of world-class technologies. And with the commitment of ‘Nation-First’ engraved in its business plans & actions, IndianOil propels India and its citizens towards a robust, sustainable, and resilient energy future.

(Shilpa Bichitra | Special Edition | 2023)