India’s prime refiner Indian Oil Corp has been working at 100 per cent capability since early November as native gas demand has recovered, its chairman S.M. Vaidya stated. IOC has been regularly elevating crude runs at its crops, which plunged to about 39 per cent initially of April when a nationwide coronavirus lockdown hit gas demand. Along with its subsidiary Chennai Petroleum Corp, IOC controls a few third of the 5 million barrels per day (bpd) refining capability in India, the place gas demand in October rose by 2.5 per cent, its first year-on-year rise in eight months.
IOC is working at full capability regardless of decrease international refining margins as its “mandate” is to fulfill the native gas demand, Vaidya advised an oil business convention on Thursday.”Refining margins are very poor, in fact they are just not sustainable but we are also investing heavily in petrochemicals as a strategy to de-risk the business of low margins,” Vaidya stated through the ADIPEC occasion.
Like different Indian refiners, IOC usually operates its crops at greater than put in capability. Vaidya stated the state of affairs will return to regular in subsequent quarter.