BPCL plans to invest ₹1.7 lakh crore in core, new energy biz
NEW DELHI: Bharat Petroleum Corporation Ltd (BPCL) plans to invest ₹1.7 lakh crore over the next five years in its core oil refining, fuel marketing and petrochemical business as well as in clean energy such as hydrogen, its chairman G Krishnakumar said on Friday.
As part of ‘Project Aspire’, a five-year strategic framework, BPCL plans to raise its oil refining capacity, augment petrochemical business and expand its presence in cleaner fuel space with an eye on energy transition and meeting country’s fuel demand, he said at a post earnings investor call.
“Our strategy is based on two fundamental pillars - ‘Nurturing the Core’; and ‘Investing in Future Big Bets’. We remain committed to our core businesses, which include the refining, marketing of petroleum products and upstream. In addition, we are focusing on our big bets, which comprise petrochemicals, gas, green energy, non-fuel retail, and digital,” Krishnakumar said.
This will not just help meet the rising fuel demand of the world’s fastest growing economy but also help the firm meet its target of achieving net zero carbon emissions by 2040.
“Overall, we plan to invest ₹1.7 lakh crores over a period of 5 years. Of this, ₹75,000 crores is earmarked for refineries and petrochemicals. We plan to undertake strategic pipeline projects with an investment of ₹8,000 crores, of which projects worth ₹5,000 crores have already been identified. We will invest more than ₹20,000 crore in our marketing business. We have also earmarked investments of ₹32,000 crores in upstream production, mainly in Mozambique and Brazil, depending on positive developments on ground. We will invest ₹25,000 crores on gas business, (and) ₹10,000 crores on green energy business,” he said.
BPCL, which owns three refineries that convert crude oil extracted from below earth’s surface into fuels like petrol and diesel, plans to expand refining capacity to 45 million tonnes per annum by March 2029 from current 35.3 million tonnes, he said.
The capacity addition would majorly be at Bina refinery in Madhya Pradesh, which is being expanded to 11 million tonnes from current 7.8 million tonnes. Smaller capacity additions through debottlenecking are planned at Mumbai and Kochi refineries as well.
On fuel retailing infrastructure, BPCL is looking to add about 4,000 petrol pumps to its 22,000-odd retail stations.
Also, the company is undertaking two petrochemical projects at Bina and Kochi, he said.
“In line with the government’s focus to increase gas share in the Indian energy portfolio from 6% to 15%, we intend to increase our gas footprint by building optimal city gas infrastructure and acquiring high opportunity geographic areas. We are also exploring enablers like diversification of sourcing, trading capabilities, storage facilities and LNG regasification infrastructure etc. to support our aspirations,” he said.