State-owned oil marketing firm Bharat Petroleum Corporation (BPCL) plans to invest Rs 1.4 trillion in the next five years in six strategic areas, including gas, renewables and e-mobility, aimed at diversifying and creating additional revenue streams to hedge against any future decline in the liquid fuel business.
“While the core businesses of refining and marketing of petroleum products continue to serve as a solid foundation, providing stability and consistent cash flows; the company has laid out a detailed roadmap under each of these strategic areas and has planned a capex outlay of around Rs 1.4 lakh crore in the next five years,” BPCL CMD Arun Kumar Singh said in the company’s latest annual report.
To expand its petrochemicals product portfolio, the company has identified two new refinery-integrated petrochemical projects: the 1.2 MTPA ethylene cracker unit at Bina refinery and the 0.4 MTPA polypropylene unit at Kochi refinery.
“Action has been initiated for these projects,” Singh said, adding that natural gas is another area of focus for the company.
BPCL has secured licences for eight new geographical areas in the recently concluded 11th and 11A city gas distribution (CGD) bid rounds. With this, BPCL has licences to develop CGD networks in 25 geographical areas covering 62 districts and a total 50 geographical areas covering 105 districts, including its joint ventures. BPCL is well poised to become a significant player in the growing natural gas market in the country, Singh said.
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BPCL also plans to increase its renewable energy capacity to one giga watt (GW) by 2025 and 10 GW by 2040, aligning with its aim to become a net-zero company by 2040. Its current renewable capacity is around 50 MW. The company is also ramping up its ethanol blending programme.
BPCL has been retailing its non-fuel offerings through its “new businesses” unit to expand the consumer retailing business vigorously, with initial focus on small towns and rural areas. In the electric mobility (e-mobility) space, it plans to set up four-wheeler charging stations along national highways, in sync with the expansion of the market.
“On the upstream front, Bharat PetroResources (BPRL), our wholly owned upstream subsidiary, achieved a major milestone with the consortium submitting the declaration of commerciality for the oil and gas discovery in BM Seal 11 Concession in Brazil during the year (FY22). The field development plan is expected to be submitted shortly, which will be followed by final investment decision for monetisation of the discoveries,” Singh said.
Project execution activities are also expected to resume soon in Mozambique, where offshore gas discoveries are being developed for monetisation through the LNG route, with the improving security situation.
“With most of its assets now either in the development or production phase, BPRL is well on its path to take its revenue generation to the next level,” Singh said.