State-run Bharat Petroleum Corporation (BPCL) looks to move out its liquefied petroleum gas (LPG) facility outside the Mumbai refinery location, as part of its efforts to strengthen safety measures at its facilities. Company officials also added similar options under consideration for its remaining refineries.
“Will look at moving some of the related facilities to alternate location for safety and commercial reasons,” said D. Rajkumar, chairman and managing director of BPCL. He added, the relocation of the LPG facility for the Mumbai refinery will be completed in the next two years. The relocation, he said, will help cut down truck movement near the facility by 43 per cent.
The top official, however, clarified that there are no plans to move the refinery itself to any alternate location. BPCL’s other refineries include its Kochi refinery and two others in Bina, Madhya Pradesh and Numaligarh in Assam, which are under joint ventures.
In terms of Iran sanction, BPCL officials said, they have sourced about 3.8 million tonnes out of the 4.2 million tonnes contracted with Iran this year, and its balance sourcing from Iran, if needed will be limited to about 0.5 million tonnes.
Talking on the rise in petrol and diesel prices, Rajkumar added, “There is no communication whatsoever from the Government at this point of time, we are passing on the hike and there are no plans to absorb the hike.”
BPCL is also developing an oil block in Brazil through a 50-50 joint venture with Videocon Industries. Company officials said the current insolvency proceedings against Videocon will not have any negative impact on the future investments in this block.
The oil marketing company also plans to spend Rs 74 Billion as capital expenditure in the current financial year, of which Rs 55 billion would be through internal accruals and the remaining to be funded through external borrowings.
BPCL also confirmed talks with various partners, including Kuwait Petroleum Corporation for a partnership in its Bina refinery project. The company plans to increase its capacity at Bina from 6 million tonnes to 7.8 million tonnes and later to 15.5 million tonnes in phases.
The company plans to focus on the petrochemicals space, where it looks to invest close to Rs 50 billion. “With the change in the transportation fuels (market scenario), the focus will move towards petrochemicals segment,” Rajkumar said.