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BPCL invests in petrochemicals and LPG at new Rasayani site

Bharat Petroleum Corporation (BPCL) will set up an ethylene cracker plant at Rasayani, as the firm pushes further into the petrochemicals business to fuel growth. The share of petrochemicals in BPCL’s portfolio is currently around 1per cent as the refiner mostly focussed on transportation fuels so far. But, with electric vehicles coming in, the firm reckons they will have some impact on transportation fuels. PBCL plans to move from one percent to 10 percent and, if possible, go up to 15 percent.

The project will be set up in two phases. In Phase-I, the company will put up the LPG and POL plants and replace the old catalytic cracking unit (CCU) and fluidized catalytic cracking unit (FCCU) with a new resid fluidized catalytic cracking unit (PRFCC), which will produce Propylene. The LPG and the POL plants will cost around Rs 2,000 crore and the Polypropylene plant will be around Rs 4,500 crore.

Phase-II involves setting up an Ethylene cracker plant also connected to the refinery, and will require an investment of about Rs 25,000 crore.

The company is currently in the midst of modernising its Mumbai refinery, and is looking to cut down the truck movements - and their emissions - to and from the Mumbai refinery by shifting some of its non-process related facilities such as the LPG and POL plants to Rasayani.

The company is looking forward to buy around 1,000 acre of land parcel from HOC for the Rasayani facility, and has an arrangement with HOC for acquiring 684 acre, of which 243 acre is in its possession to be used for the LPG and POL plants, while the balance is in the process of being acquired. BPCL has also purchased land at Chembur, close to its refinery.

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