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IOC Commits $22 Billion to Expand Refining, Petrochemicals, and Renewable Energy
30 Aug
Summary
- IOC plans $22 billion investment over 5 years
- Expanding refining capacity to 98.4 million tonnes by 2028
- Targeting 13 million tonnes petrochemicals capacity by 2030
- Investing in green hydrogen, sustainable aviation fuel, and 18 GW renewable energy
As of August 30, 2025, Indian Oil Corporation (IOC), India's largest oil firm, has unveiled a sweeping $22 billion investment plan to expand its operations over the next five years. The company is scaling up its crude oil refining capacity from the current 80.75 million tonnes per annum to 98.4 million tonnes by 2028, with major expansions at its refineries in Panipat, Gujarat, and Barauni.
Alongside its core refining business, IOC is targeting petrochemicals as a key growth engine, aiming to increase its production capacity from the current 4.3 million tonnes per annum to over 13 million tonnes by 2030. The company is focusing on specialty chemicals to reduce India's import dependence and enhance profit margins.
To support its energy infrastructure, IOC is expanding its extensive pipeline network to 22,000 km, with 21 new projects currently under execution. These include pipeline extensions and new storage facilities, even in neighboring Nepal.
In addition to its traditional oil and gas operations, IOC is investing heavily in energy transition initiatives. The company plans to achieve net-zero operational emissions by 2046, with investments in green hydrogen production, sustainable aviation fuel, and expanding its renewable electricity portfolio from 1 GW to 18 GW within the next three years.
IOC's chairman, Arvinder Singh Sahney, stated that the company's strategic focus on petrochemicals, natural gas, and renewable energy will help balance India's rising demand for auto fuels with the global shift towards cleaner energy sources.
