Bharat Petroleum To Invest Rs 75,000 Crore In Refinery And Petchem Ventures
The company will also invest Rs 32,000 crore in the upstream business, Rs 25,000 crore each in gas as well as in marketing infrastructure, and Rs 10,000 crore for renewables and alternate fuels.
Bharat Petroleum Corp. has a planned capex outlay of approximately Rs 1.5–1.7 lakh crore in the next five years, according to Chairman and Managing Director G. Krishnakumar.
The capex outlay is a part of "Project Aspire", which was a strategy introduced by the company in August 2023 to achieve net zero emissions by 2040, both in scope one and scope two.
Capex Break Up
Out of the planned Rs 1.5–1.7 lakh crores, the refiner has earmarked Rs 75,000 crore for refineries and petcheme ventures, said G Krishnakumar in the Jan. 30 concall.
The company will also invest Rs 32,000 crore in the upstream business, Rs 25,000 crore each in gas as well as in marketing infrastructure, and Rs 10,000 crore as the initial outlay for renewables and alternate fuels.
Refinery Expansion
The oil marketer's Bina refinery is currently undergoing an expansion that aims to increase the refinery's capacity from 7.8 MMT to 11 MMT. The project includes the addition of an ethylene cracker and other petrochemical projects to enhance the complexity of the refinery.
As of December 2023, Bharat Petroleum had a total domestic refinery capacity of 35.3 million metric tonne per annum. The proposed capacity target by March 31, 2028, is 38.5 MMTPA.
Significant Petrochemical Ventures
The board of Bharat Petroleum has already approved a 400 KTP propylene unit project at its Kochi refinery for Rs 5,044 crore. The project will further benefit from the propylene feedstock available in the refinery.
The company's petchem venture at Bina refinery, post-expansion, will also result in end products like HDPE, LLDPE, polypropylene, benzene, toluene, and bitumen.
The company will meet strong market demand for petchem supplies from its refineries at Bina and Kochi.
