Russia-backed Nayara Energy looks at India’s state-run oil companies to offload petrol, diesel exports | India Business News
Nayara Energy has approached Indian state-run oil marketing companies (OMCs) to offload its export volumes of petrol and diesel after Western sanctions on Russia’s oil and energy sector, according to a senior industry official, reported Economic Times.Nayara Energy is India’s second-largest single-site refinery in Vadinar, Gujarat, with a capacity of 20 million tonnes per annum (MTPA). The company contributes around 8% of India’s refining output, but is currently running the facility at a reduced capacity of about 80%, sources said.Nayara also runs a retail network of over 6,300 fuel stations, accounting for about 7% of India’s total, and has plans to scale this up by over 50% by 2030.However, July 18 sanctions by EU member states on Russia’s energy have a direct impact on Nayara Energy operations. Russian energy giant Rosneft holds a 49.13% stake in the company. The sanctions lowered the price cap on Russian oil to $47.6 per barrel from $60 and targeted “shadow fleet ships” used for Russian crude transportation.In a July 21 statement, Nayara Energy said it would continue to invest over Rs 70,000 crore in downstream projects, including petrochemicals, ethanol plants, marketing infrastructure, and ESG-linked refinery upgrades, reiterating its long-term commitment to India’s energy sector.Since August 2017, Nayara has already deployed over Rs 14,000 crore into projects across India, including refinery upgrades and a new polypropylene unit in Vadinar, marking its entry into the high-growth petrochemical segment. The company added it contributes 8% to the country’s polypropylene capacity and employs over 55,000 people directly and indirectly.“Our operations are closely aligned with India’s national priorities,” Nayara said in a statement, reaffirming its investment roadmap and its annual Rs 200 crore CSR budget focused on community development.
