India may Import 527,000 bpd Extra Oil in FY12.

NEW DELHI, - India's new refining and storage capacity coming on line in the next fiscal year will need up to an extra 527,000 barrels per day to fill, government data showed, potentially boosting imports more.

India could import as much as 26.33 million tonnes of extra oil in the next fiscal year as the country plans to bring online its first strategic storage and four refineries, acording to the information given to law makers by the Oil Ministry.

In the year ending March 2010, India imported about 3.20 million bpd crude to feed its 3.69 million bpd refining capacity.

Official estimates for the current fiscal year are not yet available.

India, Asia's third-largest and the world's fourth-biggest oil importer, is building strategic storage at three different locations in the south of the country to hedge itself against crude price volatility and supply disruptions.

Its first 1.33 million tonnes or 9.75 million barrels strategic storage at Visakhapatnam should be ready by October 2011 and commissioned by Jan 2012, Oil Minister Murli Deroa told lawmakers in a written reply on Thursday.

He said an 11 million barrels or 1.5 million tonne storage at Mangalore would be ready by November 2012 for commissioning in February 2013, while the third such facility to hold about 18.33 million barrels or 2.5 million tonnes at Padur, would be set up by May 2013 for start-up in August 2013.

Deora said state-run Hindustan Petroleum (HPCL) (HPCL.BO: Quote) and Mangalore Refinery and Petrochemicals (MRPL.BO: Quote) had sought space in the Visakhapatnam and Mangalore storage so as to import crude in very large crude carriers and save freight costs.

Indian firms are expanding refining capacity and building plants to feed growing local demand [O/INDIA2] and improve profit margins through exports.

In a written reply to another question, Junior Oil Minister Jitin Prasada said a 120,000 bpd Bina Refinery in central India would be commissioned in January 2011, followed by start up of 180,000 bpd Bathinda plant in northern India in September 2011.

Earlier this month, HPCL, which is building the Bathinda refinery in a tie-up with billionaire Lakshmi Mittal's Mittal Energy, said the plant would be started in March and would hit full capacity by September 2011. [ID:nSGE6AB0H4]

Private firm Nagarjuna Oil Corp is expected to commission its 120,000 bpd Cuddalore refinery in southern India in January-March 2012, Prasada said, adding, the first unit at Indian Oil Corp's (IOC.BO: Quote) 300,000 bpd Paradip plant in eastern Orissa state would be started in March 2012 with full operations by November 2012.

Another private refiner Essar Oil (ESRO.BO: Quote)(ESSR.L: Quote) has said it would complete expansion of its 210,000 bpd Vadinar refinery in western Gujarat state to process crude at a rate of 360,000 bpd or 18 million tonnes a year by June 2011.

The Vadinar refinery process about 280,000 bpd crude, and Essar has plans to lift capacity to 400,000 bpd by September 2012. [ID:nSGE6A90HL]

Prasada also said that HPCL also proposed to set up a 180,000 bpd refinery at Ratnagiri in western Maharashtra state, costing about 180 billion Indian rupees ($3.96 billion).

Source : af.reuters.com