Shell Global Solutions International has recommended setting up of 2-3 export-oriented integrated refining cum petrochemical hubs in India, each with a capacity of 30-60 million tpa refining capacity along with two world scale ethylene crackers in phases. Shell Global was appointed by Indian Oil Corporation on behalf of the petroleum ministry to carry out a study on making India an investment destination as a refinery hub of South and South East Asia.
As per Shell, stand alone export-oriented refinery concept is not a feasible one. Each site, in addition to a refinery and ethylene cracker, could also house derivatives plants like styrene and the next level of chemicals and downstream industries. A large scale power station fired on cheap resources like coal/coke besides other support services such as maintenance, port facilities and fabrication could be shared amongst different industries in the hub.
These super-sites are recommended to be set up as world class facilities similar to the existing international hubs like the Jurong Islands in Singapore or the Taiwanese Mailiao where Formasa Plastic Hub is based. Best export opportunities from such Indian super-sites, as per the Shell's study, exist in Asian countries including Indonesia, Bangladesh, Sri Lanka, Philippines and Pakistan. This is because larger economies like China, Korea and Japan have already planned to be self sufficient and so India should focus on countries with no structural self-sufficiency.
Shell has proposed two broad strategies that can be followed by the government for setting such hubs in the country. The first is the free market option where a maximum of two hubs with average size of 30 mtpa can be developed. The government would have a more national focus, leaving the management to individual companies providing fiscal support for select products rather for industrial development.
17-Jan-06 
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