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.
"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 preparing blue print to venture into petrochemicals
Bharat Petroleum Corporation Ltd (BPCL) is preparing a blueprint to venture into the petrochemicals business in a big way, Rajkumar said.
“We have taken board approval for our petrochemical strategy and this will include both commodity and niche derivatives,” Rajkumar said. “What, when and how will be worked out soon.”
BPCL has already invested around Rs. 5,000 crore in a propylene derivatives petrochemical project (PDPP) as part of the integrated refinery expansion project in its Kochi refinery.
The PDPP is slated to start operations by March 2019, producing “three specific petrochemicals”.
“As a strategy, all future expansion plans of BPCL group refineries are oriented towards the production of petrochemicals,” said Rajkumar.
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