How IndianOil fuels the nation and plans a holistic energy basket

Arvinder Singh Sahney, Chairman and Managing Director, IndianOil, outlines the broad impact his company has in keeping the country on the move

Could you share your perspectives on IndianOil’s prominent role in and its strategic contribution to the Indian energy sector?

IndianOil, with a legacy of over 60 years as India’s flagship national oil company and the first public sector fuel supplier and refiner, has been of strategic importance to Indian policymakers. From its early role in making India self-sufficient in refined petroleum products, IndianOil has grown into a commanding force, supplying around 9% of the nation’s energy.

It is India’s largest refiner - processing over 1.6 million barrels of crude oil every day - with a refining capacity of 31.4% (70.25 MMTPA from its own operations and 10.5 MMTPA through its subsidiary, CPCL) and the largest refined fuel supplier, owning 47% of country’s refined fuel marketing infrastructure.

To give you a perspective on our strategic contribution to the nation, everyday IndianOil delights millions through its 61,000+ touch points and widespread downstream infrastructure. It serves 32 million customers at its over 38,000 fuel stations; delivers over 2.8 million households with LPG cylinders at their doorstep; fuels 2,300+ flights, almost three flights every two minutes; and paves 130kms of roads with bitumen supplied from our premises.

With refining being a naturally low-margin and cyclical business, IndianOil pursued upstream integration into exploration and production, and downstream ventures in petrochemicals over time. Today, it is the second biggest petrochemicals player in India with 4.3 MMTPA capacity as it strives to derive greater value from each molecule of oil processed in its refineries.

IndianOil has also been crucial in shaping India’s natural gas story, where it now holds a 13% share and operates across the entire natural gas value chain starting from re-gas terminals to city gas distribution networks.

We also recognise that we need to evolve in line with energy transition and climate change imperatives to have a holistic energy basket when meeting India’s burgeoning energy demand. We are firmly aligned with the nation’s green ambitions and the goal of achieving net-zero emissions by 2070, and we plan to go operational net-zero by 2046.

Could you shed more light on IndianOil’s future growth plans and partnerships, especially in terms of modernisation and infrastructure?

As we expand our refining capacity and integrate this with petrochemicals expansion by 2030, we are simultaneously expanding our pipeline transportation infrastructure to improve the availability of products across the country, with special focus on natural gas pipelines expansion. We are expanding our marketing infrastructure to improve our last mile connectivity.

Modernisation of existing retail outlets, which includes automation, will go hand-in-hand with setting up new retail outlets. We are also transforming our fuel stations into energy stations, offering a range of options, including gasoil, gasoline, CNG, CBG, electric charging, battery swapping, and high-performance energy efficient fuels like XP100, XP95, XG.

The company is setting up a new R&D campus - our New Energy Campus - with an estimated budget of over Rs 3200 crore with focus on four new Centres of Excellence: Alternative & Renewable Energy, Corrosion Research, Nanotechnology, and Synthetic Biology.

Modernisation and digitalisation will go hand-in-hand with our expansion drive. For one, in line with meeting our Net Zero 2046 operational emissions target, an overhaul in the way our refineries consume energy will be fundamental, entailing a transition to green hydrogen, renewables and enhanced use of natural gas.

We have forged partnerships with technology leaders to trailblaze a pathway in the evolving energy ecosystem. IndianOil NTPC Green Energy Private Limited-JVC has been formed to develop grid and/ or off-grid renewable energy-based power projects.

Indo Fast Swap Energy Pvt. Ltd., our joint venture with Sun Mobility, Singapore, is set to establish one of the largest battery-swapping networks in India by expanding the fleet of battery swapping stations.

And, in the new area of battery manufacturing, we have a joint venture, IOC Phinergy Private Limited (IOP) for Aluminium-Air Batteries. Furthermore, we are also working towards the formation of a joint venture company manufacturing cylindrical lithium-ion cells in India.

With regards partnerships towards expanding the gas business…recently,we have secured long-term LNG supply deals with international majors like ADNOC and TOTAL. In this journey as we venture into new business areas, we see forging partnerships as an integral part of our growth strategy.

What are you looking forward to at India Energy Week 2025?

The Indian energy sector is at the cusp of a transformation as it leads global energy demand growth. A forum like India Energy Week, where industry, academia and policymakers come together from all over the world, would be the perfect place where I think key strands of this journey would be laid out, be it in terms of start of dialogue, ideas for new partnership, showcasing of new technologies and new business mode and sustainable solutions.