BPCL will invest Rs 1 lakh cr to become future-ready, Energy News, ET EnergyWorld


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Bharat Petroleum Corporation Ltd (BPCL), linked to the privatization, plans to invest more than Rs 1 lakh crore over the next five years in increasing petrochemical production capacity, gas activities, clean fuel and increased marketing infrastructure, its chairman Arun Kumar Singh said on Monday. The investment will help BPCL prepare for the future where conventional fuels and zero-carbon mobility in the form of electric vehicles (EVs) and hydrogen will coexist, while giving it the ability to convert more crude oil directly into high value-added oil. petrochemical.

India’s second-largest fuel retailer is looking to build a portfolio of 1,000 MW of renewable power generation capacity, primarily through acquisitions, while also investing in biofuels and hydrogen, a- he told reporters.

It aims to convert 7,000 of the more than 19,000 petrol pumps into medium and long term energy stations by offering several refueling options such as gasoline, diesel, flexible fuels, charging facilities for electric vehicles, CNG and possibly hydrogen.

“In the coming years, BPCL has developed aggressive investment plans. We will invest more than Rs 1 lakh crore at the group level mainly in improving petrochemical capacity and improving refining efficiency (30 Rs 000 crore), gas proliferation (Rs 20,000 crore), upstream oil and gas exploration and production (Rs 18,000 crore) and increased marketing infrastructure (fuel) (Rs 18,000 crore), ”he said.

In addition, the company also plans to invest Rs 5,000 crore in renewable energy and another Rs 7,000 crore in biofuels.

BPCL owns and operates three refineries in Mumbai, Kochi in Kerala and Bina in Madhya Pradesh, which convert crude oil into fuels such as gasoline and diesel. It is adding petrochemical units at refineries, the latest being in Kochi, to capture the added value of producing specialty chemicals.

“With the commissioning of two units of the Propylene Derivative Petrochemical Project (PDPP) at the Kochi refinery in February 2021, we have joined the leaders in the production of niche petrochemicals. We will increase our presence in the petrochemical space, integrating ourselves with our refining activity to diversify and hedge, ”he said.

While the government seeks to increase the share of environmentally friendly natural gas in the energy basket to 15% by 2030, against 6.2% currently, BPCL is also investing heavily in city gas networks and implementing places 12 LNG filling stations, he said. adding that the company holds a license for the retail sale of CNG and piped natural gas in 37 geographic areas.

Stating that the company and its joint ventures owned 1,393 CNG stations, he said: “Our presence at CNG stations will increase in the coming years.”

BPCL, he said, is closely monitoring the development of electric vehicles in India and expects higher penetration of two- and three-wheeled vehicles. “This is a new business opportunity as well as a hedge against the risk of displacement of automotive fuels.”

Charging stations for electric vehicles have already been installed at 44 gasoline pumps in major cities, and are expected to increase to 1,000 by 2023-24.

BPCL has also started a battery exchange pilot project for three-wheelers in Kochi and Lucknow.

Singh said the company is looking to have solar and wind power generation capacity and will seek to convert the electricity thus generated into green hydrogen – the cleanest form of hydrogen.

BPCL, which has a portfolio of 45 MW of renewable capacity, plans to increase it to 1,000 MW over the next five years.

This would “benefit the company in a number of ways – diversification, offsetting GHG emissions from the fossil fuel portfolio. Renewable energy can also help enable electric vehicles and the production of green hydrogen, ”he said.

The company is also setting up an ethanol production unit in Bargarh, Odisha with a production capacity of 100 kiloliters per day. It is also studying the possibility of setting up four more ethanol plants in deficit states with a capacity of 100 kl per day.

Of the upstream investment of Rs 18,000 crore, Rs 16,000 crore would be BPCL’s share in a giant LNG project in Mozambique.

“The planned investments will be funded by a combination of internal resources and borrowing,” said BPCL CFO VRK Gupta.

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