BPCL refineries division chief manager Neeraj Shukla was quoted by Reuters as saying that although refining margins in 2014 declined to $3 a barrel from $4.50 to $5 a barrel in 2013, BPCL seeks to increase levels by about $3 to $4 a barrel by mid-2016.
Shukla said: "We want to process only high sulphur crude at Kochi refinery, which is why we’re setting up this plant."
By May 2016, BPCL intends to raise the Kochi refinery capacity to 310,000 barrels per day (bpd) from the current 190,000bpd.
The upgraded refinery can also produce fully Euro IV compatible gasoline and diesel, Shukla added.
Meanwhile, BPCL is also considering to enter the petrochemicals sector in order strengthen its margins further.
