India has long been known as a giant in the global midstream energy sector, with refineries spread across the length and breadth of the nation. As the world has entered a new year full of new possibilities, India has announced that its state-owned Indian Oil Corporation is set to expand operations at a major refinery, targeting a mid-2026 commissioning date. India has the need to expand refining capacity as the nation is set to see substantial increases in demand over the coming years.
India has become an exemplar of how to expand refining capacity
The Indian government has recently announced that the cat is officially out of the bag regarding its plans to increase output capacity from the Gujarat refinery, which is operated by the Indian Oil Corporation. According to the company, the plan is to run the refinery at exceedingly high levels of refining as the country aims to increase energy output to meet new and ever-increasing demand for energy from the populace.
India’s vast population requires the government and its energy companies to constantly be on the lookout for ways to increase production while maintaining emission levels, which India has not done so well in the past. India has become one of the worst-polluted countries on Earth, with trash piling up in the city streets.
India’s refining sector is set to surge in the new year, with plans to boost refining capacity being the name of the game
India needs to increase refining capacity as the nation experiences a boom in demand for fuels across the sector. With more people comes the inevitable increase in demand for fuels that can power a variety of industries. The Gujarat refinery is at the center of the plans to increase capacity, with plans to boost production in mid-2026 at the latest.
The billion-dollar expansion of the Gujarat refinery will be completed in 2026
According to the Indian Oil Corporation, the planned expansion of the Gujarat refinery will cost an estimated $2.09 billion and will be completed in two phases. Indian Oil’s executive director, Biplob Biswas, announced the plans to a fanfare of approval from industry insiders. The company aims to revamp one of the five crude units at the 274,000 bpd refinery to raise overall capacity by 86,000 bpd in 2026.
“Our expansion is on track for completion by June-July of next year… The project will be completed in two phases.” – Indian Oil’s executive director, Biplob Biswas
IOC has noted that the plan calls for the initial phase of expansion to shut down the crude unit and some secondary units for upgrade, with hopes for the expansion of refining capacity to be completed by June or July. Additionally, the company has noted its plans to set up secondary units, including petrochemical and lube projects, early in 2026.
While other nations begin exploration efforts for offshore gas, India is aiming to increase capacity at one of its largest and most important refineries in 2026, marking the commitment to building on the already impressive midstream sector in the nation.
India’s continued relationship with Russia has landed the nation in hot water
Both India and Russia are member nations of BRICS, a multinational organization fostering trade between several countries. However, since the latest wave of sanctions on Russia, many nations have all but cut ties with Moscow, although that has not stopped Russia from moving forward with some energy projects of its own. This has become all too clear to the world following the news that the Congo-Russia energy pipeline began construction in 2025. Regardless of the happenings in the international political sector, India is set to boost its refining capacity at the Gujarat refinery in 2026.
