Bharat Petroleum Unveils Ambitious Rs 49,000 Crore Petrochemical & Capacity Expansion Project at Bina Refinery
Mumbai, May 17, 2023 – Bharat Petroleum Corporation Limited (BPCL), a leading oil and gas company in India, is pleased to announce its ambitious expansion plans worth Rs. 49,000 Crore, further increasing the Company’s footprints in the petrochemical segment and renewable energy, together with augmenting marketing infrastructure.
The core component of the expansion projects is the Ethylene Cracker Project, which will drive the production of essential petrochemicals. The project encompasses the establishment of an Ethylene Cracker (EC) Complex, downstream Petrochemical Plants, as well as the expansion of the existing Refinery capacity from 7.8 MMTPA to 11 MMTPA and associated facilities at Bina Refinery. With a capital expenditure of approximately Rs. 49,000 Crore, this initiative marks a significant milestone for BPCL and the energy sector as a whole.
Bina refinery expansion will meet the growing demand for petroleum products in central and northern India while also providing necessary feedstock to the EC complex. While Petrochemical Plants will cater to the growing domestic demand for petrochemical products.
Shri G Krishnakumar, C&MD, BPCL, said, “BPCL has leapfrogged into the world of Petrochemicals as we embark upon the ₹49000 Ethylene Cracker project in our Bina Refinery, in step with the expansion of Refining capacity to 11 MMTPA. Combined with our investment in 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 of meeting the rapidly growing demand for energy and Petrochemical products in India.
We are steadfast in aligning our strategic imperatives with the Government’s Atmanirbhar Bharat mission to make India a self-reliant and globally competitive petrochemical powerhouse.
These future-defining projects will generate employment opportunities and bolster our sustainable energy capabilities, a step towards a secure and net zero future.”
In the endeavor to enhance Renewable Energy footprints, the company will set up two 50 MW Wind power plants in Madhya Pradesh and Maharashtra for captive consumption at Bina and Mumbai Refineries respectively. With a total project cost of approximately Rs. 978 Crore (Rs. 489 Crore for each project), these wind power plants will be contributing to a greener and more eco-friendly operation.
Furthermore, Bharat Petroleum is making significant investments in Petroleum Oil Lubricants (POL) and Lube Oil Base Stock (LOBS) installations with receipt pipelines at Rasayani in Maharashtra. This project, with an estimated cost of approximately Rs. 2,753 Crore, aims to augment storage capacity, smoothen the supply chain and streamline the distribution of essential petroleum products.
The expansion project at Bina Refinery and the other initiatives demonstrate BPCL’s dedication to meeting the evolving energy needs of the nation and ensuring energy security and sustainability. 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.
The expansion project aligns with Bharat Petroleum’s vision to diversify and expand in adjacent and alternative businesses to create additional revenue streams and a cleaner environment by building the renewable energy portfolio to achieve Net Zero targets in Scope 1 and Scope 2 emissions.