Bharat Petroleum Corporation (BPCL), one of the leading oil and gas company in India has announced its ambitious expansion plans with CAPEX of Rs 49,000 crore, which will help further increase its footprints in the petrochemical segment and renewable energy, together with augmenting marketing infrastructure.
The core component of the expansion projects is the Ethylene Cracker Project, which will drive the production of essential petrochemicals. This 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 MMTPA to 11 MMTPA and associated facilities at Bina Refinery.
The Bina refinery expansion will meet the growing demand of petroleum products in central and northern India while also providing necessary feedstock to EC complex. While the Petrochemical plant will cater to the growing domestic demand for petrochemical products.
G Krishnakumar, Chairman and MD, BPCL said, “BPCL has leapfrogged into the world of petrochemicals as we embarked upon the Rs 49,000 crore, Ethylene Cracker project in our Bina Refinery, in step with the expansion of Refining capacity to 11 MMTPA. Combined with our investment in Wind Energy and new age petroleum oil lubricants installations built for sustainable processes, this is a watershed moment in our strategic endeavor to be at the forefront in meeting the rapidly growing demand for energy and Petrochemical products in India.”
“These future defining projects will generate employment opportunities and bolster our sustainable energy capabilities, a step towards a secure and net zero future,” he said.
As part of its focus to enhance Renewable Energy footprints, BPCL is setting up two 50 MW Wind power plants in Madhya Pradesh and Maharashtra for captive consumption at Bina and Mumbai Refineries respectively. The company estimates the total project cost of approximately Rs 978 crore (Rs. 489 Crore for each project) for these wind power plants.
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 Rs 2,753 crore, aims to augment storage capacity, smoothen the supply chain and streamline the distribution of essential petroleum products.
The expansion project aligns with Bharat Petroleum’s vision to diversify and expand in adjacent and alternative businesses to create additional revenue streams and a cleaner environment by building the renewable energy portfolio to achieve our net zero targets in Scope 1 and Scope 2 emissions.