“Total has informed us that they will like to put their participation in the project on hold for the time being,” an official in the consortium led by Hindustan Petroleum said.
The global economic downturn has seen the reversal of fortunes for refiners with margins coming under severe pressure as fuel demand dropped in major markets in the US, Europe and South East Asia.
The only-for-exports 14 million tonnes a year refinery was being planned to target South East Asia and Middle East. Fuel demand in Asia was at that time projected to rise by 5 million barrels a day in 10 years but has since slowed. “The project is not going anywhere as of now. With Mittal and Total not participating, we have put the project on hold,” the official said.
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