BPCL plans Rs13K-cr expansion for Numaligarh refinery: CMD
BY Agencies27 Jan 2014 10:19 PM GMT
Agencies27 Jan 2014 10:19 PM GMT
India's second biggest state-run refiner Bharat Petroleum Corporation Ltd (BPCL) plans to spend about Rs 13,000 crore on expanding its Numaligarh refinery in Assam by 2017-18.
BPCL plans to expand the Numaligarh refinery to 9 million tonnes from the current 3 million tonnes, company chairman and managing director S Varadarajan said.
'We are still at the drawing-board stage for the expansion. We need tax concessions both from the central and the state governments to make the expansion economically viable,' he said.
Numaligarh refinery, which was conceived and designed to process locally available crude from North Eastern oilfields, has been operating at less than its capacity due to dwindling crude oil output in the region. BPCL now plans to process imported crude oil after expansion of the unit, he said. A 1,338-kilometer, 6 million-tonne-a-year pipeline will be built from Dhamra Port in Odisha to Numaligarh to feed expanded refining capacity with imported crude.
Techno-economic feasibility study for the refinery expansion project has been completed and Engineers India Ltd (EIL) is now preparing detailed feasibility report (DFR), he said, adding that route survey for the crude oil pipeline has been completed and DFR preparation is in progress.
Numaligarh refinery operated at only 83 per cent of its nameplate 3 million-ton-a-year capacity in 2012-13. It earned a net profit of Rs 144.26 crore on a sales of Rs 8,752.88 crore in the year.
The refinery is now planning expansion of refining capacity by setting up new process units that are capable of processing high sulphur imported crude oil.
High sulphur crude, compared to low sulphur oil being cheaper, is expected to have a positive impact on its margins. BPCL also plans to raise capacity of its Bina refinery in Madhya Pradesh to 8 million tonnes from current 6 million tonnes.
'We plan to complete the Bina expansion by December 2016,' Varadarajan said.
BPCL, which also operates a 12 million tonnes refinery at Mumbai, is also raising capacity at its Kochi refinery in Kerala by 6 million tonnes to 15.5 million tonnes by 2015-16.
BPCL plans to expand the Numaligarh refinery to 9 million tonnes from the current 3 million tonnes, company chairman and managing director S Varadarajan said.
'We are still at the drawing-board stage for the expansion. We need tax concessions both from the central and the state governments to make the expansion economically viable,' he said.
Numaligarh refinery, which was conceived and designed to process locally available crude from North Eastern oilfields, has been operating at less than its capacity due to dwindling crude oil output in the region. BPCL now plans to process imported crude oil after expansion of the unit, he said. A 1,338-kilometer, 6 million-tonne-a-year pipeline will be built from Dhamra Port in Odisha to Numaligarh to feed expanded refining capacity with imported crude.
Techno-economic feasibility study for the refinery expansion project has been completed and Engineers India Ltd (EIL) is now preparing detailed feasibility report (DFR), he said, adding that route survey for the crude oil pipeline has been completed and DFR preparation is in progress.
Numaligarh refinery operated at only 83 per cent of its nameplate 3 million-ton-a-year capacity in 2012-13. It earned a net profit of Rs 144.26 crore on a sales of Rs 8,752.88 crore in the year.
The refinery is now planning expansion of refining capacity by setting up new process units that are capable of processing high sulphur imported crude oil.
High sulphur crude, compared to low sulphur oil being cheaper, is expected to have a positive impact on its margins. BPCL also plans to raise capacity of its Bina refinery in Madhya Pradesh to 8 million tonnes from current 6 million tonnes.
'We plan to complete the Bina expansion by December 2016,' Varadarajan said.
BPCL, which also operates a 12 million tonnes refinery at Mumbai, is also raising capacity at its Kochi refinery in Kerala by 6 million tonnes to 15.5 million tonnes by 2015-16.
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