BPCL to Elevate the Expansion of its Refinery in Bina, Madhya Pradesh

Bharat Petroleum Corporation Limited (BPCL), India's state-controlled refiner, is gearing up to commence the expansion of its Bina refinery located in Madhya Pradesh. With an investment of 490 billion rupees (equivalent to $5.9 billion), the company plans to boost the refinery's capacity from its current 156,000 b/d to approximately 221,000 b/d. Following the expansion, the refinery will produce over 2.2 million tons of petrochemical products annually. While BPCL initially aimed for the project's completion within three years, the current target is set at five years.

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Key features of the expansion include the introduction of an ethylene cracker complex, which will leverage captive feedstock such as naphtha, LPG, and kerosene. The expanded facility will also cater to the production of aromatic compounds like benzene, toluene, and mixed xylenes. These compounds find extensive applications in various sectors, including household, pharmaceutical, and automotive.

This development aligns seamlessly with the Madhya Pradesh government's objective of establishing a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR). The government envisions this region attracting significant investments in areas like industrial films, fibers, injection molding, blow molding, pipes, conduits, and automobile parts.

As highlighted by Vetsa Ramakrishna Gupta, BPCL's finance director, in August, the company's broader goal is to achieve a petrochemical production of 2.5 million tons annually by 2028. Furthermore, BPCL is in the process of setting up units for high-density polyethylene, linear-low density polyethylene, and polypropylene at the Bina refinery.

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Highlighting the significance of the Bina ethylene cracker project, G Krishnakumar, BPCL's chairman and managing director, stated last month that post-expansion, petrochemicals would constitute 8% of BPCL's overall product mix. However, he didn't specify the current percentage of petrochemicals in the product portfolio.

According to the article by Procurement Resource, BPCL is set to expand its Bina refinery in Madhya Pradesh, investing $5.9 billion to increase its capacity from 156,000 b/d to about 221,000 b/d within five years. This move aligns with Madhya Pradesh's vision to establish a Petroleum Chemicals and Petrochemicals Investment Region, expected to attract significant investments. The expanded facility will bolster BPCL's petrochemical production, aiming for 2.5 million tons annually by 2028. The project marks a strategic shift towards enhancing BPCL's petrochemical output in its product portfolio.