BPCL and Oil India plan to expand refinerys worth $11 billion.
Bharat Petrol Corp, the state-run oil company in India, signed three agreements on Tuesday at an industry conference. One of them was with Oil India for a greenfield refinery complex and petrochemical plant worth 1 trillion rupees ($11.38billion) to be built in Andhra Pradesh.
BPCL has also partnered up with Numaligarh Refinery, Oil India and Fertilisers & Chemicals Travancore for a 35 billion rupee pipeline across the country. It will also market organic fertilizers from its Kochi Biogas Plant.
Chairman Sanjay Khanna stated that Oil India was considering taking a 10-20% stake in a planned refinery for southern India, while BPCL seeks additional partners to the project.
BPCL announced that the proposed refinery with a 9 to 12 million tonne capacity has been approved by Andhra Pradesh. The government also provided 6,000 acres of property for pre-project preparation.
The Ramayapatnam complex is expected to begin commercial operations in fiscal 2030. It will include a 1.5 million-tonne cracker for ethylene.
BPCL, Oil India, and Numaligarh Refinery will build a 700 km pipeline from Siliguri via Muzaffarpur to Mughalsarai, after NRL increased its capacity to 9 million tonnes a yearly.
The pipeline will transport petrol, diesel, and jet fuel. BPCL holds 50%, and Oil India, NRL, and NRL share the remainder.
The deal between BPCL and Fertilisers & Chemicals in Travancore involves the supply and trading of organic manure produced by its upcoming Biogas Plant in Brahmapuram in Kerala.
The facility will convert municipal waste into compressed biogases and organic fertilisers.
BPCL, India's second largest refiner with a capacity of 706,000 barrels a day across three refineries. $1 = 87.8950 Indian Rupees (Reporting and editing by Mrigank Bhaniwala, Nivedita Boucharjee).
(source: Reuters)
