BPCL board approves Rs 490 bn capex for Bina Refinery

Bharat Petroleum Corporation (BPCL), a state-owned company, has received approval from its board for a major project at the Bina Refinery. The project, estimated to cost around Rs 490 billion, involves the construction of an ethylene cracker, as well as downstream petrochemical plants and the expansion of the existing refinery. The centrepiece of the expansion initiatives is the Ethylene Cracker Project, which will facilitate the production of vital petrochemicals. It encompasses the establishment of an Ethylene Cracker Complex, downstream Petrochemical Plants, and the expansion of the current Refinery capacity from 7.8 MMTPA to 11 MMTPA, along with associated facilities at the Bina Refinery. G Krishnakumar, C&MD of BPCL, expressed his enthusiasm for the project, stating that the company has entered the petrochemical industry with the Rs 49,000 Ethylene Cracker project at the Bina Refinery. He also mentioned the expansion of the Refining capacity to 11 MMTPA and the company's investments in Wind Energy and new age Petroleum Oil Lubricants installations. Krishnakumar emphasised that these endeavours mark a significant milestone in BPCL's strategic pursuit of leading the way in meeting the increasing energy and petrochemical demands in India while fostering sustainability. In addition to the ethylene cracker project, BPCL's board has approved the establishment of two 50 MW wind power plants for captive consumption. One will be located at the Bina refinery in Madhya Pradesh, while the other will be situated at the Mumbai refinery in Maharashtra. The total cost of these wind power plants is estimated to be around Rs 9.78 billion, with each project accounting for Rs 4.89 billion. Furthermore, BPCL is making substantial investments in Petroleum Oil Lubricants (POL) and Lube Oil Base Stock (LOBS) installations, including receipt pipelines, at Rasayani in Maharashtra. This project, with an approximate cost of Rs 27.53 billion, aims to enhance storage capacity, streamline the supply chain, and optimise the distribution of essential petroleum products. BPCL emphasised that these expansion projects align with its vision to diversify and expand into related and alternative sectors, creating additional revenue streams and fostering a cleaner environment. The company aims to achieve its Net Zero targets in Scope 1 and Scope 2 emissions by building its renewable energy portfolio. Also read: GAIL to build Maharashtra ethane cracker at Rs 400 bn Noida, Greater Noida to set up waste-to-energy plant