Home > Crude Oil & Petroleum > Planned maintenence results in lower refinery output in September

Planned maintenence results in lower refinery output in September

Refinery throughput in India nosedived by 10.2% during April-September 2010 compared to the year-ago month. The refiners processed 12.16 million tonnes crude oil.

Planned maintenance in various units across refineries resulted in this drastic fall in refinery throughput. Planned shutdown means the time during which maintenance and or upgradation of the refinery takes place. It is done on an annual basis, usually during the monsoons as the demand during those months is relatively less.

  • Production at refineries owned by Indian Oil Corporation (IOC) dipped by 19.8 per cent to 3.4 million tonnes in September over the previous year’s level. The planned shutdown at the Panipat refinery of IOC mainly led this decline.
  • Output at Hindustan Petroleum Corporation’s refineries decreased by 20.9 per cent. This was due to the Lube Oil Upgradation Project at its Mumbai refinery and a planned shutdown at its Visakh refinery as well.
  • Reliance Industries Ltd (RIL), which operates the country’s biggest refinery complex at Jamnagar, processed 8.6 per cent less of crude oil at 2.72 million tonne year-on-year. Statistics for its second refinery located at a SEZ in Jamnagar are not available.

While refinery output fell drastically, India’s crude oil production rose for the 10 consecutive month in September. This increase was mainly led by private and joint venture companies.

  • ONGC, which account for about 45 percent of India’s oil production, recorded a fall in production by 2.2 percent to 1.4 million tonnes. This is largely on account of its ageing Mumbai High oil fields.
  • Private and joint venture companies including Cairn India and Reliance Industries registered a robust 90.3% rise in crude oil production.

Domestic Natural gas production has been recording a year-on-year growth since the commencement of gas output from Reliance Industries owned KG-D6 block. Currently, RIL is producing 60 million standard cubic metres per day (mmscmd) of gas, which it plans to increase to 80 mmscmd in about 12 months. This will augur well for power and fertiliser industries, which are large consumers of this source of energy.

The main point on which we would like to draw attention is that the drastic fall in domestic refinery production in September need not necessarily mean a fall in demand for petroleum products from industrial units. It is also a reflection of the planned shutdown undertaken by several public sector refineries.

link to statistics: http://pib.nic.in/newsite/PrintRelease.aspx?relid=66556

Categories: Crude Oil & Petroleum
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