BPCL announces USD6 billion refinery expansion project
Bharat Petroleum Corporation Limited (BPCL), a leading oil and gas company in India, announced its ambitious expansion plans to further increase the company’s footprints in the petrochemical segment and renewable energy, together with augmenting marketing infrastructure.
The core component of the expansion projects, valued at an estimated cost of INR49,000 Crore (USD5.9 billion), is the Ethylene Cracker Project, which will drive the production of essential petrochemicals. The project encompasses the establishment of an Ethylene Cracker (EC) Complex, downstream Petrochemical Plants, as well as the expansion of the existing Refinery capacity from 7.8 million metric tons per annum (MMTPA) to 11 MMTPA and associated facilities at the Bina Refinery. With a capital expenditure of approximately INR49,000 Crore (USD5.9 billion), this initiative marks a significant milestone for BPCL and the energy sector as a whole.
The Bina refinery expansion will meet the growing demand for petroleum products in central and northern India while also providing the necessary feedstock to the Ethylene Cracker complex. The Petrochemical Plant will cater to the growing domestic demand for petrochemical products.
Shri G Krishnakumar, chairman and managing director of BPCL, called the expansion project “a watershed moment in our strategic endeavour to be at the forefront in meeting the rapidly growing demand for energy and petrochemical products in India.”
To enhance its renewable energy footprints, the company will set up two 50 megawatt (MW) wind power plants in Madhya Pradesh and Maharashtra for captive consumption at Bina and Mumbai Refineries, respectively. With a total project cost of approximately INR978 Crore (USD176 million), these wind power plants will be contributing to a greener and more eco-friendly operation.
Furthermore, Bharat Petroleum is making significant investments in Petroleum Oil Lubricants (POL) and Lube Oil Base Stock (LOBS) installations with receipt pipelines at Rasayani in Maharashtra. This project, with an estimated cost of approximately INR2,753 Crore (USD493,391), aims to augment storage capacity, smoothen the supply chain and streamline the distribution of essential petroleum products.
The expansion project at Bina Refinery and the other initiatives demonstrate BPCL’s dedication to meet the evolving energy needs of the nation and ensure energy security and sustainability. These investments will not only strengthen the company’s position in the petrochemical industry but also contribute to the economic growth and development of the regions where the projects are based.