BPCL Approves Rs 1,138 Crore For Pipeline Expansion Projects
At a meeting, the board also approved JVs with Sembcorp Green Hydrogen India Pvt. and GPS Renewables Pvt. The company will hold 50% equity in both ventures.
Bharat Petroleum Corp. has approved a capital expenditure of Rs 1,138 crore for pipeline expansion projects.
The board has greenlit the augmentation of the Cochin Coimbatore Karur Pipeline and the Irugur Devangonthi Pipeline, along with the establishment of a Palakkad terminal and operations point in Kerala, according to an exchange filing on Thursday.
The existing CCKPL pipeline, with a capacity of 3.3 MMTPA, will see an addition of 3.77 MMTPA, while the IDPL pipeline, currently under construction with a capacity of 2.4 MMTPA, will be expanded by 1.1 MMTPA.
The project is expected to be completed within 36 months after getting statutory approvals and land acquisition and will be financed through internal funding.
This expansion aims to improve the efficient evacuation of finished petroleum products from BPCL's Kochi refinery and includes setting up associated facilities and an oil storage terminal in Palakkad.
At a meeting, the board also approved joint venture agreements with Sembcorp Green Hydrogen India Pvt. and GPS Renewables Pvt. The company will hold 50% equity in both ventures.
The collaboration with Sembcorp focusses on renewable energy and green hydrogen, while the partnership with GPS Renewables will establish compressed biogas plants across India. These initiatives are part of BPCL's strategy to strengthen its presence in the green energy sector.
The JV agreements are subject to regulatory approvals from NITI Aayog and the Department of Investment and Public Asset Management.
Shares of BPCL closed 0.96% higher at Rs 343.55 apiece on the BSE, compared to a 1.77% advance in the benchmark Sensex.
