BPCL to Invest over 52,000 Cr. in Ethylene Cracker, Bina Refinery Expansion
Bharat Petroleum Corporation Ltd. (BPCL), the Indian oil and gas giant, will be investing about Rs. 52,731 crore in multiple projects. This information was conveyed by BPCL in its press release dated 17th May 2023.
BPCL Envisages Rs. 49,000 Cr. Petrochem Project & Expansion at Bina Refinery
Out of BPCL’s total investment amount, about Rs. 49,000 crore will be utilised at its Bina refinery in Madhya Pradesh. This sum will be used towards the development of an Ethylene Cracker unit with downstream petrochemical plants and for the refinery’s capacity expansion.
BPCL’s aforementioned press release states that this Ethylene Cracker unit is the ‘core component’ of this expansion project.
Ethylene Cracker Unit at Bina Refinery to Significantly Expand BPCL’s Petrochem Capacity
Bharat Petroleum’s investment at Bina refinery will be mostly for the development of an Ethylene Cracker unit which will be used to produce Ethylene from Natural Gas. Ethylene is a primary raw material for the production of plastics and marks the first step in the production of most petrochemicals.
As per the company’s 2021-22 annual report, BPCL had identified the Bina Ethylene Cracker unit as a refinery-integrated project of 1.2 MMTPA (Million Metric Tonne Per Annum) capacity and had initiated action for this project. Considering BPCL’s Petrochemicals production of 92,337 Metric Tonne (MT) during the 2021-22 financial year, the upcoming unit at Bina refinery will be a significant addition to BPCL’s Petrochemical capacity.
Bina Refinery Expansion to Feed Upcoming Petrochem Unit
BPCL’s investment at the Bina refinery includes capacity expansion to 11 MMTPA from the current 7.8 MMTPA. This expansion will not only address the petroleum products demand in north and central India but will also feed the aforementioned Ethylene Cracker unit.
BPCL to Invest 2,753 Cr. in Lubricant Facilities
Bharat Petroleum will be developing Petroleum Oil Lubricants (POL) and Lube Oil Base Stock (LOBS) storage and distribution facilities at Rasayani, Maharashtra with an approximate investment of Rs. 2,753 crore. Allied receipt pipelines for these facilities will also be laid as a part of this project.
As per BPCL, these facilities will improve its supply chain operations with regard to POL and LOBS products.
Wind Power Plants to be Set Up for BPCL’s Bina & Mumbai Refineries
Two wind power plants of 50 MW capacity each will be established in Madhya Pradesh and Maharashtra respectively to provide power to BPCL’s Bina refinery and Mumbai refinery. Each of these wind power projects will be developed at an estimated cost of Rs. 489 crore.
Speaking of the company’s investments, Mr. G Krishnakumar, Chairman & MD of BPCL, said, “BPCL has leapfrogged into the world of Petrochemicals as we embark upon the ₹49,000 Cr. Ethylene Cracker project in our Bina Refinery, in step with the expansion of Refining capacity to 11 MMTPA”. He also stated that this project will help India move towards self-reliance, and become a “globally competitive petrochemical powerhouse”.
Mr. Krishnakumar further said, “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”.
About Bharat Petroleum Corporation Ltd.: Bharat Petroleum Corporation Ltd. is a Maharatna oil & gas Public Sector Undertaking (PSU), and a Fortune 500 company. BPCL’s combined refining capacity sits at about 40 MMTPA with refineries in strategic locations such as Mumbai, Bina, Kochi, and Numaligarh. For the year ended 31st March 2022, the company reported Rs. 4,32,569.62 crore as its revenue from operations.