IOCL Targets Over 10.5 Million Tonne Natural Gas Sales by 2030 Following Record FY26 Performance

State-run Indian Oil Corporation (IOCL) has announced a target to achieve natural gas sales of more than 10.50 million tonnes (Mt) by the end of the decade. The strategic goal was outlined by IOCL Chairman A S Sahney while addressing shareholders at the company's annual general meeting.

The announcement follows record-setting performance in the company's natural gas business for the financial year ending March 2026. During this period, the natural gas division recorded its highest-ever sales of 7.09 Mt, up from 6.892 Mt in FY25, 5.67 Mt in FY24, and 4.07 Mt in FY23. Additionally, the City Gas Distribution (CGD) business achieved positive EBITDA for the period.

According to the company, the natural gas portfolio spans liquefied natural gas (LNG) import and regasification, gas marketing, and City Gas Distribution. Infrastructure supporting this segment includes the 5 Mt per annum Ennore LNG terminal operated through a joint venture in southern India, along with pipeline connectivity and marketing operations. IOCL and its joint ventures currently hold authorizations across 49 geographical areas for City Gas Distribution.

To support its 2030 targets, IOCL plans to continue expanding its infrastructure, which includes pipelines, CGD networks, LNG import and handling facilities, and LNG fuelling stations. The company noted that these developments aim to strengthen its overall position across the gas value chain.

Alongside the natural gas updates, IOCL highlighted milestones across its core operations for the year. Refineries achieved a record crude throughput of 75.45 Mt, liquid pipelines reached a throughput of 102.52 Mt, and domestic petroleum product sales hit an all-time high of 88.97 Mt. The company also commissioned 2,635 new retail outlets, bringing its total network to 42,818 locations. In alternative and clean mobility, IOCL expanded its EV-charging and battery-swapping footprint to over 15,000 locations, while its CNG network crossed 2,600 stations.

Addressing external operational challenges, Chairman Sahney noted that events in West Asia towards the close of FY26 and into the current financial year highlighted shifts in the global energy landscape. Disruptions to maritime trade through the Strait of Hormuz posed challenges to global energy security, impacting India, which imports over 88 percent of its crude oil requirements. IOCL reported that roughly 45 percent of its crude imports and nearly 90 percent of its LPG imports are linked to this maritime corridor.

Despite these supply constraints and shifts away from Middle Eastern crude grades, IOCL maintained refinery operations above 100 percent utilization, ramped up LPG production by nearly 30 percent, and secured additional LNG from diversified geographies to maintain supply continuity.

"IOCL's strategic focus on expanding its natural gas infrastructure and scaling up alternative energy avenues highlights the resilience required in large-scale energy enterprises. Achieving positive EBITDA in the City Gas Distribution business alongside a clear target for 2030 demonstrates strong operational execution, especially while navigating complex geopolitical supply chain challenges in global energy markets." — Dr. Shishir Gupta, Founder & CEO, StartupLanes