22-01-2014
Bharat Petroleum’s $2.8B refinery expansion
Bharat Petroleum Corp, India’s second-biggest state refiner, plans to almost double the combined capacity of two refineries at a cost of about $2.8 billion to feed the company’s growing network of gas stations.
Capacity would rise to 9 million metric tons from 3 million, costing about $2.4 billion, at Numaligarh refinery in Assam state and to 8 million tons from 6 million at the Bina site in Madhya Pradesh province, Chairman S. Varadarajan said.
“The Numaligarh refinery expansion is still in the drawing-board stage and it would hinge on tax concessions and other benefits from the provincial and federal governments,” Varadarajan said in an interview yesterday.
BPCL, as the company is known, joins peers Indian Oil Corp. (IOCL) and Hindustan Petroleum Corp. in adding refining capacity to meet local demand. Indian use of petroleum products may increase by more than 21 percent to about 186 million tons by March 2017 from the fiscal year 2012-13, according to the oil ministry’s Petroleum Planning and Analysis Cell.
A 1,338-kilometer (830 mile), 6-million-ton-a-year pipeline will be built from Dhamra Port in Odisha state to Numaligarh to feed expanded refining capacity with imported crude. Bharat Petroleum owns 61.7 percent of Numaligarh Refinery Ltd. Bina, costing $2.4 billion, began output in June 2010 and is run by BPCL and Oman Oil Co.’s venture Bharat Oman Refineries Ltd.
“We will complete the Bina expansion before December 2016 through debottlenecking, tweaking some existing configuration and technological improvements,” Varadarajan said.
Kochi Refinery
BPCL is also spending $2.3 billion to raise capacity at its Kochi refinery in the south by 6 million tons to 15.5 million, according figures in the company’s annual report.
More refining capacity will help expand its retail fuel business, particularly in north and eastern India, and push sales into neighboring countries like Nepal and Bhutan. BPCL sold about 18 percent more fuel than it processed in the year ended March 31, buying from rivals or overseas to fill the gap.
It added 1,257 outlets in the period and plans to add about 1,000 annually for the next few years, on top of the 11,637 it owned as of March 2013, giving a market share of 27.5 percent.
The government in June 2010 freed pump prices, and allowed state refiners in January 2013 to raise diesel prices by about 0.50 rupees a liter each month in a move toward deregulation.
“These changes could lead to greater competition from private players in the days ahead,” Varadarajan said.
By Debjit Chakraborty - Bloomberg News
For more information, please click HERE
News Category:
-
Beyond processbook & PI vision: Exploring today’s industrial analytics tools
(Webinar) - In the Manufacturing 4.0 era, industrial organizations have more data at their fingertips than ever, offering the promise of higher production rates, more ...
04-06-2024
-
Sasol provides state of the art catalysts to INERATEC for the production of sustainable e-fuels
The catalysts will be used, among others, in the first large-scale industrial Power-to-Liquid (PtL) plant that INERATEC is currently building in Frankfurt, Germany, which ...
24-04-2024
-
Baker Hughes to supply 17 centrifugal compressors to Saudi Master Gas System project
Baker Hughes, an energy technology company, announced Tuesday that it has received an order by Worley, for and on behalf of Aramco, to supply gas technology equipment ...
23-04-2024
-
SABIC Fujian Petrochemicals select Phenol yechnology from KBR
KBR announced today it has been awarded a contract by SABIC Fujian Petrochemicals to license KBR's market-leading phenol technology in China. Under the terms of the ...
22-04-2024
-
Lummus Expands R&D capabilities to enhance innovation and water and wastewater technologies
Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced the opening of its cutting-edge research and development (R&D) ...
17-04-2024
-
Clariant launches new CATOFIN® 312 propane dehydrogenation catalyst
Clariant, a sustainability-focused specialty chemical company, today announced the launch of CATOFIN 312, its latest propane dehydrogenation catalyst. The new catalyst ...
16-04-2024
-
Yokogawa and GridBeyond conclude investment and strategic partnership agreements
Yokogawa Electric Corporation and energy IT solutions provider GridBeyond of Ireland announce that they have concluded a strategic partnership agreement. Furthermore, ...
16-04-2024
-
Heraeus Precious Metals launches Circlear
Heraeus Precious Metals, a globally leading company in the precious metals industry and one of the largest recyclers of precious metals, has introduced its new offering ...
16-04-2024
-
EMA and JERA to cooperate on LNG procurement and supply chains
The Energy Market Authority and JERA Co Inc, have signed a Memorandum of Understanding to cooperate on mutually beneficial areas in liquefied natural gas procurement ...
16-04-2024
-
Hexagon and Dragos unveil technical partnership to strengthen industrial cybersecurity
Hexagon’s Asset Lifecycle Intelligence division today announced a strategic partnership with Dragos, a global leader in cybersecurity for operational technology (OT). ...
16-04-2024