{"id":12131,"date":"2024-10-12T04:08:33","date_gmt":"2024-10-12T04:08:33","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=12131"},"modified":"2024-10-12T04:08:33","modified_gmt":"2024-10-12T04:08:33","slug":"indian-state-refiner-looks-to-raise-3-3-billion-for-new-refinery","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/12131\/","title":{"rendered":"Indian State Refiner Looks to Raise $3.3 Billion for New Refinery"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Indian state-owned refiner Chennai Petroleum Corporation Limited is holding discussions with banks to obtain a loan of $3.33 billion (280 billion Indian rupees) that would help it build a refinery in southern India, sources with knowledge of the plans told Bloomberg<\/a>.<\/p>\n

Chennai Petroleum – whose 52% majority shareholder is India’s biggest refiner, state-held Indian Oil Corporation – has proposed to build a refinery worth a total of $3.9 billion (330 billion rupees) in the state of Tamil Nadu in the south.<\/p>\n

National Iranian Oil Company (NIOC) is also a shareholder<\/a> in Chennai Petroleum with 15.4%, but it will not participate in the refinery construction. The new crude processing facility will be 75% owned by Indian Oil, while Chennai Petroleum will hold the other 15% in the proposed new complex called the Cauvery Basin refinery project.<\/p>\n

State Bank of India is expected to lead the loan syndicate for the new refinery, according to Bloomberg’s sources.<\/p>\n

Indian refiners are looking to expand their refining capacity to meet growing domestic demand for fuels amid higher-than-average economic growth and rising middle-class numbers.<\/p>\n

Another state refiner, Bharat Petroleum Corporation Ltd (BPCL), is also reportedly in talks with major local banks to secure a loan of about $3.8 billion<\/a> which it will use to expand the capacity of one of its refineries.<\/p>\n

Separately, state-held Oil and Natural Gas Corporation (ONGC), the biggest oil and gas explorer in India, is assessing plans for an $8.3-billion refinery<\/a> plus petrochemicals project in the most populous Indian state, Uttar Pradesh, to take advantage of growing fuel demand.<\/p>\n

India will drive\u00a0up to 35%<\/a>\u00a0of global energy demand growth over the next 20 years, petroleum minister Hardeep Puri said at the Gastech conference in Houston last month.<\/p>\n

“If you say that global demand is increasing by one percent, ours is increasing by three times that,” Puri\u00a0said<\/a>. “In the next two decades, 35% of the increase in global demand will come from India.”<\/p>\n

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