IndianOil to process 46.5 million tonne of crude
New Delhi   15-Apr-2008
IndianOil, the country's biggest refiner, expects to process 46.5 million tonnes of crude in the current financial year, marginally down from the last year as it plans maintenance shutdowns at some of its refineries, its director of finance said on Monday. "We are planning maintenance shutdowns at some refineries, including Panipat, so our crude processes may be larger," S.V. Narasimhan told reporters at an energy conference. He said IndianOil's naphtha exports in the current financial year will be around 2.0 million tonnes, almost same as last year, as domestic demand continues to remain at last year's level. "Last year naphtha export was 2.074 million tonnes and this year directionally it is going to be like that." "Last year we had a shutdown at Mumbai High. So domestic demand was slightly higher and this year because of customs duty on naphtha imports, we expect that domestic demand will continue to be at last year's level," Narasimhan said. IndianOil had forecast last year that it would export about 2.4 million tonnes of naphtha for the year ended March 2008, before high gas prices forced domestic utilities to burn more naphtha during last December and the start of this year. A new 5 percent import tax on naphtha announced in late-February would help lift domestic demand for the feedstock this year, as petrochemical producers in India would likely buy more from refiners back home. India has seen a robust growth in diesel consumption with state-run refiners resorting to imports.