BPCL

We plan to invest ₹1.5 lakh crore in five years to expand operations: G Krishnakumar, BPCL chairman

July 31, 2023

BPCL plans to invest ₹1.5 lakh crore in the next five years to diversify operations as it targets net zero carbon dioxide emissions by 2040, BPCL chairman G Krishnakumar told ET's Kalpana Pathak.

The state-run oil marketing company, which reported a consolidated profit of ₹10,644 crore in the first quarter ended June on the back of handsome refining and marketing margins, also plans to raise up to ₹18,000 crore in a rights issue this fiscal year, he said. Edited excerpts:

When does BPCL plan to launch its rights issue?
To meet our capital outlay for projects relating to net zero, we have proposed a right issue of equity capital of up to ₹ 18,000 crore. The rights issue will be completed within this financial year after compliance on the regulatory and statutory fronts. Currently, the process for appointment of intermediaries is underway. BPCL has set itself a net-zero target by 2040.

What about your five-year investment plans?

We are investing about ₹1.5 lakh crore in the next five years, which will be funded through a combination of internal generation and borrowings. This probably is more than what we did in the last 15 years. Petrochemicals, renewables, EV (electric vehicle) charging and the Mozambique LNG project will be our big bets in the coming years.

How significant would the renewable energy segment be for BPCL in five years?
BPCL aspires to develop 1 GW renewable capacity assets (solar and wind) by 2025-26 and 10 GW by 2040. Currently, five solar projects across Kerala, Maharashtra and Madhya Pradesh are in various stages of execution with an aggregate capacity of 45.5 MW at an investment of ₹ 245 crore. BPCL is also implementing two wind power projects in Maharashtra and Madhya Pradesh with an aggregate capacity of 100 MW at an investment of ₹ 978 crore.

The street is expecting a fuel price cut from OMCs. Do we see that happening anytime soon?
We are constantly reviewing the crude/product prices and will take decisions on pricing once the international crude/product prices are more stable. Due to this high fluctuation in crude prices and recent OPEC+ cuts, we are constantly reviewing the crude/product prices and will take decisions on revision in retail selling price once the international crude/product prices are more stable ..

Alternative fuel vehicles are registering an increase in monthly sales numbers. How far is that a challenge for BPCL's petrol and diesel sales?
BPCL has been investing in alternative fuel offerings in the retail network. BPCL is planning to convert 30% of its 21,000 retail outlets into energy stations in the medium to long term by offering fuelling options like petrol, diesel, CNG, CBG, EV charging and eventually hydrogen.

BPCL unveils Rs 49,000 cr petrochemical, capacity expansion project at MP’s Bina refinery

May 17, 2023

Bharat Petroleum on Wednesday announced Rs 49,000 crore petrochemical and capacity expansion project at its Bina Refinery. One of the main components of the expansion projects is the Ethylene Cracker Project which will drive the production of essential petrochemicals. The project includes establishment of an Ethylene Cracker complex, downstream petrochemical plants as well as expansion from 7.8 MMTPA to 11 MMTPA.

The Bina refinery expansion from 7.8 MMTPA to 11 MMTPA will help BPCL meet the growing demand of petroleum products in central and northern India. The expansion will also help provide necessary feedstock to EC complex. The petrochemical plant, on the other hand, will cater to the growing domestic demand, according to a company release.

Besides this, BPCL is also investing around Rs 2,753 crore in petroleum oil lubricants (POL) and lube oil base stock (LOBS) installations in Maharashtra’s Rasayani. The project aims to bolster storage capacity, and smoothen supply chain and streamline distribution of essential petroleum products.

The oil and gas company will also set up two 50 MW wind power plants in Madhya Pradesh and Maharashtra for captive consumption at Bina and Mumbai refineries respectively at a cost outlay of around Rs 978 crore. The wind power plants will contribute to eco-friendly operations.

The release read: “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”.

Commenting on BPCL’s expansion plans, CMD G Krishnakumar said the ONGC’s foray into petrochemicals and other expansion plans are in sync with the central government’s Aatmanirbhar Bharat mission. He added these projects will generate employment opportunities apart from boosting sustainable capabilities and creating a net zero future.

Krishnakumar said: “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”.

MP govt gives nod to Rs 50,000-cr BPCL proposal for Bina refinery

April 12, 2023

Chief Minister Shivraj Singh Chouhan approved a revised proposal of Rs 43 crore to Rs 50,000-crore for the expansion of Bina Refinery of Bharat Petroleum Corporation Limited (BPCL) and setting up of a petrochemical project, an official said.

The Madhya Pradesh Investment Promotion Committee headed by Chief Minister Shivraj Singh Chouhan on Tuesday approved a revised official said. The project is expected to provide employment to about 2000 youths, he said. The production is likely to start by financial year 2027-28. Petroleum by-products such as gasoline, diesel, ATF (aviation turbine fuel)/jet fuel, LLDPE (Linear Low-Density Polyethylene), HDPE (High Density Polyethylene), bitumen, benzene among others will be produced at the complex. For the availability of feedstock, several downstream MSMEs will be set up in the area. The committee also gave approval for the investment of Rs 150 crore in Mohasa-Babai industrial area, the official said.

BPCL to set up polypropylene unit

February 02, 2022

The Board of Bharat Petroleum Corporation Limited (BPCL) at its meeting held on 31st January, 2022 has approved a proposal for evaluating the option of putting up a polypropylene unit at Kochi Refinery and to discontinue the polyols project.

The polyols project at Kochi Refinery was approved by the Board in September 2018. The project was developed further by carrying out activities such as award for licensing of technology and related activities to licensors and appointing Project Management Consultant.

During the development of the project, cost estimates with an accuracy level of +/- 10% were prepared based on front end engineering design of the facilities. However, the revised cost estimates are much higher than the original estimate mainly on account of increase in equipment and material cost. As this has adversely affected the project economics, the Board has approved the proposal to discontinue the polyols project.

BPCL to invest ₹25K crore to build a renewables portfolio

January 07, 2022

Bharat Petroleum Corp. Ltd (BPCL) plans to spend ₹25,000 crore to build a renewable energy capacity of 10 gigawatts (GW) comprising a mix of solar, wind, small hydro and biomass, a senior company official said on Thursday.

“We have aspiration to reach 1 gigawatt of renewable energy in the short term (by 2025) and a 10 gigawatt portfolio, say, by 2040 or earlier," Amit Garg, executive director, renewable energy, BPCL said. BPCL’s planned renewable energy portfolio would comprise solar (800 MW), wind (100 MW), small hydro (60 MW), and biomass (40 MW). Hydrogen could also be included in the portfolio at a later stage. The company has collaborated with Bhabha Atomic Research Centre (BARC) to scale up alkaline electrolyzer technology for green hydrogen production

BPCL is scouting for suitable land to build power producing units in Uttar Pradesh for 80-100 MW; Bina, Madhya Pradesh (20 MW in Phase I), Rajasthan (250–500 MW) and Delhi of less than 5 MW. “We are committed to Scope 1 and 2 and aim to be net zero by 2040. We are seeing a shift from fossil fuels to renewable energy. India would be among the countries that will continue to grow in fossil fuels, but we understand that it has to eventually move to clean energy," the company said.