1 min read.Updated: 04 Sep 2021, 03:59 PM ISTLivemint
Petroleum and natural gas minister Hardeep Singh Puri meeting with SIBUR Holding chairman Dmitry Konov comes against the backdrop of state run Indian Oil Corporation being in talks with the Russian petrochemical giant for a partnership to set up a large facility in India
NEW DELHI: India’s petroleum and natural gas minister Hardeep Singh Puri met Dmitry Konov, chairman of management board of Russia’s largest integrated petrochemicals firm PJSC SIBUR Holding during his visit to Russia.
This comes against the backdrop of state run Indian Oil Corporation (IOC) being in talks with PJSC SIBUR Holding for a partnership to set up a large petrochemical facility in India as reported by Mint earlier. IOC is focussing on the expansion of its petrochemical business against the backdrop of a growing demand for petrochemicals in the country.
“Strengthening cooperation in petrochemical sector," Puri said in a tweet on Friday.
"Met Dmitry Konov, chairman of management board of Sibur (Holding) to discuss investments into India," he added in another tweet.
IOC, the country’s largest fuel retailer and refiner plans to invest ₹1 trillion over the next four to five years as it plans to add another 25 million tonnes per annum (mtpa) to its current capacity of 80.2 mtpa.
IOC, which expects India’s diesel demand to reach pre Covid-19 levels by Diwali this year, has a 32% share of the domestic market. This assumes importance given that energy consumption, especially electricity and refinery products, is usually linked to overall demand in the economy.
Mint had earlier reported about India and Russia working on a multi-pronged approach that involves joint collaboration in petrochemicals along with energy sourcing and supplies, and upstream investments in Russia and India.
India has been leaning on its old energy partner Russia as part of the strategy of diversifying its energy basket with crude oil supplies from non-Organization of the Petroleum Exporting Countries (Opec) sources. India signed the first term contract for crude oil sourcing from Russia in February last year, with IOC and Russian oil company Rosneft inking the agreement for 2 million metric tonnes (mmt) of Urals grade crude. India is also looking to invest in Rosneft’s Vostok project.
India is also eyeing more long-term crude oil contracts from Russia, with the two countries working on a multi-pronged approach that involves energy sourcing and supplies, upstream investments in Russia and India, and joint collaboration for petrochemical business.
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