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UAE, Saudi Arabia Interested in Indian Refinery Investments, Minister Says
Summary
The United Arab Emirates and Saudi Arabia are exploring investments in India's refining sector to gain access to its growing downstream market, according to India's oil minister.
The United Arab Emirates and Saudi Arabia are interested in investing in India’s oil refining sector, according to comments made Thursday by India’s oil minister, Hardeep Singh Puri. The potential investments align with India's strategy to significantly expand its domestic processing capacity to meet rising energy demand.
Securing Downstream Access
Speaking at an event, Puri explained the strategic motivation for the Gulf nations' interest, noting that it extends beyond crude processing to include retail market access. "Nobody wants to come and invest in a refinery unless they can also get a slice of your growing downstream market," he said.
As the world's third-largest importer and consumer of oil, India represents a critical and expanding market for major crude producers. The minister confirmed the Gulf states' interest, stating, "So yeah, they’re very keen on these investments."
AdIndia's Expansion Plans
India aims to increase its national refining capacity from approximately 5.4 million barrels per day (bpd) to between 6.2 million and 6.4 million bpd. This expansion will be achieved through a combination of building new facilities and upgrading existing ones.
Puri highlighted the significant capital required for such projects, estimating the cost to build a new refinery at between 780 billion and 800 billion rupees ($8.13 billion to $8.34 billion). This high cost underscores the potential role for substantial foreign investment in achieving the country's capacity goals.
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