State-run Bharat Petroleum Corporation (BPCL) on Friday announced the amalgamation of its subsidiary refinery Bharat Oman Refineries (BORL) in Bina with itself.
“The amalgamation is expected to be mutually beneficial to both companies. BPCL and its group companies have a significant presence in the upstream, refining, and downstream value chain of oil and gas industry while BORL provides product security and logistics advantage in Northern and Central India, through a network of pipelines,” BPCL said in a statement.
Bina Refinery is, therefore, of strategic importance to BPCL in its efforts to meet the demand for petroleum products in the hinterland. Additionally, a cost optimisation on purchase of crude oil, flexibility in crude feedstock selection, optimisation in production planning/product mix for the refineries are some of the major benefits on crude procurement, it added.
“As the energy landscape undergoes massive changes, BPCL has formulated definitive plans to expand its footprint across the energy sector and diversify for future growth and sustainability. With the amalgamation of Bina Refinery, we will build the capabilities to compete more effectively and profitably in the fast changing energy marketplace,” BPCL CMD Arun Kumar Singh said.
Mutually beneficial
Bina Refinery will have unrestricted access to BPCL’s marketing network to evacuate its products. Several renewable energy projects, 1.2 million tonnes per annum (MTPA) Ethylene Cracker unit and petrochemical infrastructure have been envisaged for the large land parcel, available with Bina Refinery.
These projects — being cost-intensive — will get quicker financial closure, after the amalgamation. Additionally, they will also have access to BPCL’s support functions, business processes and talent pool.
Bharat Petroleum’s refineries at Mumbai, Kochi and Bina have a combined refining capacity of around 35.3 MTPA, while its marketing infrastructure includes a network of installations, depots, retail outlets, aviation service stations and LPG distributors.
Its distribution network comprises over 20,000 retail outlets, over 6,100 LPG distributorships, 733 Lubes distributorships, 123 POL storage locations, 53 LPG bottling plants, 60 aviation service stations, three lube blending plants and four cross-country pipelines.
Bina Refinery, a versatile refinery, processes 47 types of crudes and have recently started production of Mineral Turpentine Oil, as well. It boasts of an integrated Full Conversion Hydrocracker and Diesel Hydro-treater, first of its kind in India, and a Delayed Coker Unit to upgrade bottoms of the barrel.