New Delhi: Indian refiners processed 3.7% less crude in June than a year earlier due to repair work at some plants, and negative margins hurt runs at plants owned by leading private firm Reliance Industries, official data showed.
Combined crude processing at Reliance Industries’ two refineries at Jamnagar in western Gujarat state fell 10.3% in June from a year earlier, when only its old 660,000 bpd plant was operating.
Refining margins for simple Asian refiners turned negative in June to minus 40 cents.
Crude processing at Reliance’s units was also down as it had shut a 100,000 bpd vacuum gas oil hydrotreater at its old refinery towards the end of the month after a fire.
Reliance started its second crude unit at is new 580,000 bpd refinery, sited next to old plant, in late June.
Essar Oil, another private refiner, processed 19.7% more crude than a year earlier at its Vadinar refinery, which was upgraded in early May to process 280,000 bpd.
India’s total crude oil output in June rose an annual 4.1% to 672,400 bpd, the data showed, while natural gas output grew 36.3% to 3.59 billion cubic metres as Reliance stepped up supplies from its D6 block in the east coast.
Maintenance work at refineries reduced throughput of plants owned by Indian Oil Corp, the country’s biggest state-run refiner, by 5.7% and that of Bharat Petroleum Corp units by 12.1%.
In June, IOC shut its 160,000 bpd Mathura plant in northern India and carried out maintenance work at its biggest 274,000 bpd Koyali refinery in western India. BPCL had extended the partial shutdown of 150,000 bpd Kochi plant by about 3 weeks.
Crude processing at Hindustan Petroleum Corp’s two refineries rose 6.4% in June from a year earlier.
Crude processing at state refiners, which meet local demand, declined 3.9% in June.
Overall, production at Indian refineries in June stood at 109.1% of installed capacity.