The company is exploring opportunities across petrochemicals, biofuels, gas, consumer retail, electric mobility, and digital transformation
Indian state-owned Bharat Petroleum Corporation (BPCL) has announced plans to invest over INR1 trillion ($13.54bn) over the next five years in an effort to enhance its focus on new segments for sustainable growth.
The announcement was made by BPCL’s chairman and managing director Arun Kumar Singh during the company’s 68th annual general meeting (AGM).
The Indian oil marketing major said that it is exploring opportunities across biofuels, petrochemicals, gas, consumer retail, electric mobility, and digital transformation.
The investment will be majorly made at the group level.
BPCL will invest INR300bn ($4.05bn) for improving petrochemical capacity and improving refining efficiencies.
The company will allocate INR200bn ($2.7bn) towards gas proliferation and INR180bn ($2.43bn) for augmenting fuel marketing infrastructure.
For upstream oil and gas exploration and production, the company will invest INR180bn ($2.43bn).
Arun Kumar Singh said: “The investment will help BPCL prepare for the future where conventional fuels and zero-carbon mobility in form of electric vehicles (EVs) and hydrogen will co-exist, while giving it the option to convert a greater degree of crude oil directly into high-value petrochemicals.”
Currently, BPCL has a refining capacity of nearly 37 million metric tonnes per annum (MMTPA). Its refineries are located in Mumbai and Kochi and in Bina, Madhya Pradesh, the company has refining presence through its subsidiary Bharat Oman Refineries.
Earlier this year, the company had commissioned a $830m propylene derivative petrochemical project (PDPP) at its Kochi refinery.
The company said that it will utilise its nationwide network of fuel stations for supporting electric mobility.
For this, the company will convert nearly 7,000 of its traditional retail outlets into energy stations to offer multiple fueling options such as petrol, diesel, flexi fuels, EV charging facility, CNG, and hydrogen.
BPCL’s marketing infrastructure consists of a network of installations, depots, retail outlets, aviation service stations and LPG distributors.
Its distribution network includes over 19,000 retail outlets, over 6,100 LPG distributorships, 53 LPG bottling plants, and 60 aviation service stations, and 4 cross-country pipelines.