India will keep purchasing crude oil from Russia if it is offered at a discount, said Union Minister Hardeep Singh Puri on Friday. He emphasised that the government is committed to securing the most cost-effective crude oil to meet the country’s energy needs.
“Back in February 2022, we were buying less than 0.2 per cent of our crude oil from Russia. Now, Russia supplies about 30 per cent of our oil. If Russian crude oil is available at a good discount, we will buy it. Similarly, if we find discounted crude oil from another market, we will buy from there too,” said Puri, who serves as the Minister for Petroleum and Natural Gas, during a media interaction.
The minister highlighted Prime Minister Narendra Modi’s dedication to ensuring affordable energy for all Indians, 24/7, while also advancing the transition to green energy.
“Our focus is not on buying from any specific country. We aim to purchase the most economically priced energy that meets the quality and grade requirements of our refineries,” Puri added.
He stated that India is open to both long-term contracts and spot purchases with oil-producing countries.
He explained the government’s strategy, saying, “We issue tenders at the time of importation. This allows us to secure the best deal. Payments are usually made in U.S. dollars, but in some cases, we explore local currency transactions. Energy supplies remain abundant, even with some producers reducing their output.”
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Regarding the refinery project in Maharashtra’s Ratnagiri district, Puri noted that its proposed size of 60 million metric tons per year made it unfeasible.
“Instead, we are exploring the option of setting up three smaller refineries, each with a capacity of 20 million metric tons per year. Discussions are ongoing,” he shared.
The Ratnagiri Refinery and Petrochemicals Limited (RRPCL) was established in 2017 as a joint venture by Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation.
The project aims to develop an integrated refinery and petrochemical complex on Maharashtra’s west coast, with interest from global players like Saudi Aramco and Abu Dhabi National Oil Company.
Hardeep Singh Puri also mentioned that India’s current refining capacity stands at approximately 268-270 million metric tons per year, with plans underway to increase it to 310 million metric tons annually.
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