BPCL pledges to spend Rs 1.5 lakh crore on capital projects over the next five years

29 Aug 2023 , 10:57 AM

On Monday, Bharat Petroleum Corp Ltd (BPCL) announced that it would invest over 1.5 lakh crore in Project Aspire, its transformational program, over the following five years.

In order to achieve its goal of being net-zero by 2040, the oil marketing company will use Project Aspire to increase both its oil business and its portfolio of renewable energy, according to G Krishnakumar, chairman and managing director, who spoke during the company’s 70th annual general meeting.

According to Krishnakumar addressing the gathering, ‘The company has set a planned capex outlay of around 1.5 lakh crore in the next five years, which will enable BPCL to create long-term value for our stakeholders while preserving our planet for future generations.’

Krishnakumar added that between now and 2040, BPCL will invest 1 lakh crore in initiatives like green hydrogen, carbon capture, utilization, and storage (CCUS), and enhancing energy efficiency to reduce emissions.

For its 240,000 barrels per day (bpd) Mumbai refinery and Bina refinery in central India, BPCL would also invest 10 lakh crore to put up 50 megawatts of captive wind power facilities.

The corporation aims to own 1 GW and 10 GW of renewable energy capacity, respectively, by 2025 and 2040.

According to Krishnakumar, the merger of Bharat Oman Refineries and BPCL has significantly improved the company’s refining capabilities. He also said that BPCL is increasing the capacity of its Bina Refinery from 7.8 MMTPA to 11 MMTPA in order to secure its markets in northern and central India.

After the expansion, the Bina refinery will have a capacity of about 220,000 barrels per day (bpd).

At its Bina refinery, BPCL is also constructing a Rs 490 billion ethylene cracker with a daily capacity of 156,000 barrels (bpd). The ethylene cracker will increase the petrochemicals sector of the Bina refinery’s revenue to 8%. Additionally, BPCL is considering expanding its 310,000 bpd Kochi refinery in Southern India with a Polypropylene project.

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