The Hindu Business Line : `Ministry working towards improving oil security'

The first phase of the capacity expansion-cum-modernisation was completed in 2005 at a cost of Rs 250 crore and involved setting up of facilities for production of auto fuels.

OIL SECURITY: The Union Minister for Petroleum and Natural Gas, Mr Murli Deora, flanked by the Union Minister for Overseas Indian Affairs, Mr Vayalar Ravi, and the Kerala Chief Minister, Mr V.S. Achuthanandan, at the foundation stone-laying for the expansion and modernisation of BPCL-Kochi Refinery in Kochi on Sunday. — H. Vibhu

Kochi June 24 The Union Minister of Petroleum and Natural Gas, Mr Murli Deora, laid the foundation for the second phase of capacity expansion-cum-modernisation project of the BPCL-Kochi Refinery here on Sunday.

The Rs 2,600-crore project envisages expansion of the refining capacity from the current 7.5 million tonnes per annum (MTPA) to 9.5 MTPA and setting up facilities for producing petrol and diesel, which would meet the Euro III and Euro IV emission norms.

Twin objectives

The upgradation project has twin objectives of improving the quality of fuels to positively impact the environment and of enhancing the refining capacity to meet the increased product demand. The project is scheduled for completion by September 2009.

Speaking on the occasion, the Minister said that the Ministry has been working to improve the oil security of the nation and refinery expansions are one of the strategies to do so.

The oil industry is now the largest merchandise exporter of the country with exports over $1.75 billion during last year, and the sector may become a larger exporter during the 11th Plan, he said.

The capacity increase of BPCL-KRL would entail revamping of one of the existing crude distillation units.

Major new facilities such as vacuum gas hydro-desulphurisation unit and continuous catalyst regeneration unit will be set up. A captive power plant having a generation capacity of 36 MW is another feature of the project.

The first phase of the capacity expansion-cum-modernisation was completed in 2005 at a cost of Rs 250 crore and involved setting up of facilities for production of auto fuels such as petrol and diesel confirming to Bharat Stage II product specifications.

Early implementation

In his address, the Kerala Chief Minister, Mr V.S. Achuthanandan, called upon BPCL for the early implementation of the proposed 500 MW power plant based on vacuum residue of KRL on account of the demand of power in the State.

Likewise, he also called upon the Petroleum Minister to implement the LNG terminal without any delay, as it would enable to provide power to various industries in the State.

Mr Ashok Sinha, Chairman and Managing Director of BPCL, pointed out that the work has also commenced on a new grassroots refinery with a capacity of 6 MTPA at Bina in Madhya Pradesh, which is being set up by a joint venture company promoted by BPCL. The project is due for completion by the end of 2009.

With the upgradation of KRL and commissioning of Bina Refinery, the total refining capacity for the BPCL group in 2009 should be around 30 MTPA, he added.

BPCL with a net worth of Rs 10,724 crore and sales turnover of Rs 1,07,452 crore in 2006-07 has another refinery at Mumbai with a capacity of 12 MTPA for refining crude oil. The company also has a subsidiary, Numaligarh Refinery Ltd in Assam with a refining capacity of 3 MTPA, Mr Sinha said.

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