Natural gas output rose close to 4% to 2.97 billion cubic metres year on year, while crude oil production was down 1% year on year to 2.48 million tonnes, the data showed. Meanwhile, India's Hindustan Petroleum Corp (HPCL) announced in February plans to start its 9 million tonne-a-year Barmer refinery and petrochemical project in Rajasthan state by January 2024, in an effort to cut its petrochemical imports. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ India oil production ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Rahul Paswan and Swati Verma; additional reporting by Harshit Verma in Bengaluru; editing by Jason Neely and Josie Kao)
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March 1 (Reuters) - Crude oil processed by Indian
refiners reached record levels in January, provisional
government data showed on Wednesday, as the country boosted
shipments of lucrative Russian barrels that Western countries
shunned.
Refinery throughput at 5.39 million barrels per day (22.80
million tonnes) for January was the highest since Reuters
records going back to 2009.
"Indian refiners are churning out refined products due to
strong demand and on discounted Russian feed stock," said
Refinitiv analyst Ehsan Ul-Haq, adding that refinery margins are
strong as refiners are getting crude at lower prices and can
sell them at higher rates due to a healthy demand.
Data from trade sources last week showed India's oil imports
from Moscow were the highest on record in January, as the
world's third-biggest oil importer and consumer emerged as
Russia's key oil client.
Overall crude oil imports rose to a six-month high last
month, while the country's fuel demand is further expected to
grow 4.7% in the next fiscal year beginning on April 1, initial
government estimates showed last week.
"Sooner or later, Middle Eastern refiners might have to
revise their official selling price to compete against Russia,"
Ul-Haq said adding that "with Europe now lacking Russian diesel,
Indian refiners are also likely to profit from diesel exports."
Asia's third-biggest economy holds surplus refining capacity
and exports refined fuels as well.
Refineries' capacity utilisation jumped to 106.91% in
January this year from 104.39% the previous month, with India's
top refiner, Indian Oil Corp (IOC) , operating its
directly owned plants at 109.97% capacity, as per the data.
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