BPCL plans Rs 4,588-cr foray into petrochemicals

Bharat Petroleum Corporation Ltd (BPCL) is planning to diversify into downstream petrochemicals with an investment of Rs 4,588 crores by using propylene. “The Board of Directors of BPCL have given their approval for diversification into petrochemicals at an estimated capital cost of Rs 4,588 crores,” said BPCL in a BSE filing.
 
The PSU refiner is planning to produce niche petrochemicals such as acrylic acid, acrylates and oxo alcohols, which are predominantly being imported into the country, at its Kochi refinery facility, using the polymer grade propylene that will be available after the ongoing Integrated Refinery Expansion Project (IREP) is completed.
 
BPCL is in process of increasing the refining capacity of Kochi refinery from 9.5 million metric tonne per annum (MMTPA) to 15.5 MMTPA under IREP project and improve the auto-fuel quality to Euro-IV/V levels to meet the growing demand of petroleum products in Indian market.This would also upgrade the refinery residue stream to value added distillates, which BPCLis planning to use for diversification into value added petrochemical products.
 
BPCL’s planned petrochemical products will have major applications in industries such as paints and coatings, adhesives, plasticisers, solvents, water treatment, etc. The petrochemical unit is expected to come on stream during the financial year 2018-19. The project proposal will now be submitted for obtaining environmental clearance, said BPCL in a BSE filing.
 
Kochi refinery is presently producing petrochemical feed stocks such as benzene, toluene and propylene in addition to the various petroleum products and specialty products. Increased quantities of naphtha will be produced in the refinery after the proposed capacity expansion.
BPCL will now integrate the refinery with a petrochemicals complex to utilise naphtha and other feedstocks from the refinery.