If Russia sells crude oil at discount, India will buy it: Hardeep Singh Puri

Mumbai:

Union Minister Hardeep Singh Puri on Friday said India will continue to buy crude oil from Russia if it is available at a discount, stressing that the government is “committed” to buying the most economically priced crude. .

“In February 2022, we used to buy less than 0.2 per cent from Russia. Now, we are buying 30 per cent. If it is available at a good discount, we will buy it. If it (crude oil) is available elsewhere (at a discount) Price), we will buy (from that market),” Hardeep Singh Puri, who is the Minister of Petroleum and Natural Gas, said while interacting with the media here.

“Prime Minister Narendra Modi’s commitment is to provide 24×7 energy in the most affordable manner along with the transition to green energy,” the minister said.

“We are not committed to buying any quantity from anyone. We are committed to buying the most economically priced energy of the grade of crude that you (refineries) want.” He said the government is ready for both long-term and spot deals with oil producing countries.

“We issue tenders at the point of import. This means that if we have a requirement for a particular route, we will issue a tender and then whoever can supply it.. will supply. Terms of Payment Will always be in line with that. Sometimes special circumstances arise where you are able to do that, most transactions are in dollars and you try some local currency as you go,” he said.

“Energy is available in abundant supply. More and more crude is coming to market despite cutbacks by some producers,” he said.

Responding to a question on the refinery project in Maharashtra’s Ratnagiri district, the minister said the project was not viable due to its size (60 million metric tonnes per annum capacity).

“I think our position as of now is that we are looking at the possibility of three (refineries) at 20 million metric tons per year instead of the 60 million metric tons per year that are being discussed behind the scenes for.” Notably, Ratnagiri Refinery and Petrochemicals Limited (RRPCL), a joint venture company, was formed in 2017 by three national oil companies, namely Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.

It proposes to implement an integrated refinery and petrochemicals complex on the west coast of Maharashtra.

Saudi Aramco (SA) and Abu Dhabi National Oil Company, two global oil and gas majors, have also expressed their intention to partner in the project.

However, Hardeep Singh Puri said refining capacity is currently growing at around 268-270 million metric tonnes per annum, adding that “we already have plans to go up to 310 million metric tonnes per annum.”