Refinery-expansion delays in India will support product near-term differentials and refining margins in Asia because the supply of additional oil products will be deferred, Singapore-based traders said.

"The heavily delayed 300,000 barrel-a-day Paradip refinery on the east coast of India is now expected to start up in November 2013," BofA Merrill Lynch said in a note adding that the delay is in line with its pessimistic outlook for Indian refinery additions.

State-run Indian Oil Corp. (530965.BY), India's largest listed company by sales, is building the refinery in Orissa and expects it to be operational in the first half of this year.

Mangalore Refinery & Petrochemicals Ltd.'s (500109.BY) expansion will increase capacity to 360,000 barrels a day from 300,000 barrels a day. It is delayed until September from June as a result of delays in its power plant, Mumbai-based IFCI Financial Services said in a note.

The power plant is expected to be commissioned in May, the fluid catalytic cracking and coker units in June and the polypropylene unit by August, IFCI said.

BofA said the refinery ramped up production in mid-2012 but had stabilization issues.

Source: Dow Jones