Generic Hero BannerGeneric Hero Banner
Latest market news

Covid-19 surge disrupts Indian refinery turnarounds

  • : Crude oil, Oil products, Petrochemicals
  • 21/04/28

Indian refiners have postponed maintenance plans, while others face delays with restarts, as the country struggles to contain the spread of its Covid-19 outbreak.

Indian state-controlled refiner Bharat Petroleum (BPCL) will postpone its maintenance planned for this month as the country's outbreak worsens. BPCL had plans for maintenance in April at its 240,000 b/d Mumbai refinery but decided to postpone it following the surge in Covid-19 cases.

It is impossible to complete any refinery turnarounds currently because of strict lockdown restrictions as the maintenance require a large number of people to gather, which is currently not permitted, said an Indian refiner.

The date of the BPCL Mumbai turnaround is yet to be determined. But there should be some clarity in early May as the government is expected to announce new rules then, said a market participant.

Indian private-sector refiner Reliance Industries also postponed a turnaround at the 1.8mn t/yr paraxylene unit at its Jamnagar refining complex because of the surge in Covid-19 cases. The unit was expected to have a one-month turnaround in May.

Indian state-controlled refiner Hindustan Petroleum (HPCL) managed to start work as planned during April at its 150,000 b/d Mumbai refinery, although its faces a two-day delay to the restart of its crude distillation unit.

State-controlled refiner IOC has plans for a scheduled turnaround at its 300,000 b/d Paradip refinery in August. But this could face delays as well, depending on how the outbreak evolves, said market participants, although this could not be confirmed with IOC.

India's Covid-19 outbreak has slashed transportation demand resulting in more fuel exports than expected, according to Argus tender data. Domestic private-sector refiner Nayara has offered about 50,000 b/d of gasoline for May loading compared with around 35,000 b/d normally, while IOC has offered a rare 30,000t (254,000 bl) spot gasoline cargo from Kandla as inventories build with falling demand.


Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more