Indian Oil Corporation (IOCL) recorded its highest-ever natural gas sales in FY 2025-26 and is now targeting a 1.5-fold increase by 2030 through global value chain expansion.

  • IOCL targets 1.5x increase in natural gas sales by 2030.
  • Record sales of 7.09 MMT achieved in the fiscal year 2025-26.
  • Refining capacity to rise from 80.75 MMTPA to 98 MMTPA.
  • Goal to increase petrochemical intensity index to 15% by 2030.

The state-owned oil-marketing giant, Indian Oil Corporation (IOCL), has unveiled an ambitious growth strategy to pivot towards cleaner energy and higher-value products. During the annual general meeting of shareholders on Monday, Chairman Arvinder Singh Sahney announced that the company is eyeing a 1.5-fold increase in natural gas sales by the year 2030.

This announcement follows a stellar performance in the fiscal year 2025-26, where the company reported its highest-ever natural gas sales of 7.09 million metric tonnes (MMT). Furthermore, the company's city-gas distribution (CGD) segment has successfully achieved a positive EBITDA, signaling strong operational health and market penetration.

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Why This Matters

BozokMedia analysis shows that IOCL's strategic shift toward natural gas and petrochemicals is a calculated move to hedge against the long-term decline of internal combustion engines. By integrating deeper into the global gas value chain, IOCL is aligning itself with India's national goal of increasing the share of natural gas in the energy mix from roughly 6% to 15% by 2030.

"The aggressive expansion of refining and gas infrastructure is a prerequisite for India to maintain its energy sovereignty in a volatile global market."

In terms of refining infrastructure, the Delhi-headquartered company intends to contribute over 40% of India's overall target refining capacity of 300 million metric tonnes per annum (MMTPA). To achieve this, IOCL is executing massive expansion projects at the Panipat refinery (15 to 25 MMTPA), Gujarat (13.7 to 18 MMTPA), and Barauni (6 to 9 MMTPA). These upgrades will collectively push their capacity to 98 MMTPA from the current 80.75 MMTPA.

Parallel to this, the company is focusing on its 'Petrochemical Intensity Index'. Mr. Sahney stated the goal is to reach approximately 15% by 2030, which means producing more chemical building blocks per barrel of oil rather than traditional fuels like High-Speed Diesel (HSD) and Motor Spirit (MS).

RefineryCurrent Capacity (MMTPA)Target Capacity (MMTPA)
Panipat1525
Gujarat13.718
Barauni69
Did You Know?: The Petrochemical Intensity Index measures a refiner's ability to pivot from fuel production to high-margin chemicals, which are essential for plastics, pharmaceuticals, and textiles.

Frequently Asked Questions

1. What is IOCL's target for natural gas sales by 2030?
The company aims to increase its natural gas sales by 1.5 times compared to current levels.

2. How much will IOCL's total refining capacity increase?
The capacity is expected to rise from 80.75 MMTPA to 98 MMTPA following expansions in Panipat, Gujarat, and Barauni.