March 27, 2025 – Saudi Aramco, the world’s biggest oil producer, is in talks with two planned refineries in India. The company is negotiating with Bharat Petroleum Corp (BPCL) for a refinery in Andhra Pradesh and with Oil and Natural Gas Corp (ONGC) for a project in Gujarat. These talks aim to secure a stable outlet for Saudi Aramco’s crude oil in India, the world’s fastest-growing emerging market.
Being the world’s third-biggest oil importer and consumer, India aims to become a global refining hub. This shift comes after Western companies reduce crude refining capacity in their shift to cleaner fuels. This sets the perfect stage for the entry of oil-producing giants like Saudi Aramco in India.
Saudi Arabia’s share of India’s oil imports has dwindled in recent years. This is because Indian refiners, which spent billions of dollars in upgrading their plants, are now getting oil from different nations, including Russia, where it is cheaper.
In December, BPCL’s chairman stated that the company aims to invest US$ 11 billion in its Andhra Pradesh refinery and petrochemical projects. On the other hand, ONGC’s Gujrat refinery plans are still in the infancy stage.
Both state-controlled firms stated that their projects would proceed whether Saudi Aramco invests or not. This all depends on the proposal that Aramco gives to these companies. If Saudi Aramco proceeds forward with its investment, this could create significant revenue-generation opportunities for industries like refinery catalysts.
According to Coherent Market Insights (CMI), the global refinery catalyst industry is set to record significant growth during the forecast period. Growing demand for fuels and expansion of refiners, such as that of BPCL, will shape this growth.
“Saudi Aramco’s investment in Indian refineries will directly boost refinery catalyst demand, particularly for FCC and hydrotreating catalysts. It could also drive innovation in catalyst technology while impacting pricing and supply chains,” says a senior analyst at CMI.”
Refineries often require advanced catalysts to enhance fuel efficiency, meet regulations, and improve crude oil conversions. Thus, Aramco’s investment in expanding or upgrading Indian refiners will likely create a higher demand for catalysts used in processes like hydrotreating, fluid catalytic cracking (FCC), and hydrocracking.
New investment could also push Indian refineries towards advanced refining technologies. Courtesy of this, there will be a high demand for next-gen catalysts that improve fuel quality and reduce environmental impact.
Both local and international refinery catalyst manufacturers could see a rise in demand as refineries upgrade their processes to meet stricter environmental regulations. They may form partnerships with BPCL and ONGC or seek contracts from these firms for supplying catalysts.
Sources:
News Outlet: Reuters
