BPCL to shift LPG facility from Mumbai refinery; other refineries also to follow

Mumbai: State-run Bharat Petroleum Corporation (BPCL), which had a string of fire accidents this year at all its facilities, including the recent blasts at its flagship refinery here, is planning to shift the LPG facility out of the city to the nearby Rasayani, as part of its efforts to strengthen safety measures.

The second largest state-run refiner and oil marketer is also planning similar options for its other refineries in Kochi, and its joint venture refineries at Numaligarh in Assam and Bina in Madhya Pradesh as well, a top company official said here Tuesday.

"Will look at moving some of the related facilities, especially the LPG facility, to an alternate location for safety and commercial reasons," said D Rajkumar, chairman and managing director, BPCL.

The relocation of the LPG facility from the Mumbai refinery complex to Rasayani, which is around 60 km off the eastern waterfront, will be completed in the next two years, he said, adding this will help cut down truck movement near the refinery by as much as 43 per cent.

But Rajkumar, addressing the media after the AGM here late last evening, was quick to add that there is no plan to move the refinery itself to any alternate location.

BPCL's director for refineries, R Ramachandran, said the Rasayani facility over the years will attract Rs 36,000-38,000 crore of investments over the next few years as the company is also planning a petchem facility there.

"The investment plans are still at the drawing board level, except for the LPG facility which is already underway.

We already have taken 250 acres and the entire plan will involve taking in an additional 500 acres. And thankfully land acquisition will not be an issue as the land was earlier an industrial plot," said Ramachandran.

The first phase will have the LPG bottling facility, followed by a poly-propylene block, and the second phase will have an enthoneyline plant, he added.

Rajkumar also said BPCL will invest around Rs 7,400 crore towards capital expenditure this fiscal year, of which around Rs 5,300 crore will be managed through internal accruals and the rest will be debt.

He said most of the capex will go into the upcoming petchem facility in Kochi as it will be focusing big on the petrochemicals sector going forward.