BPCL mulls major expansion, sees energy demand quadruple by 2047 – Times of India

NEW DELHI: Bharat Petroleum Corporation Ltd (BPCL) is looking at setting up a new 180,000-300,000 bpd (embarrels per day) refinery in addition to a Rs 1.7 lakh crore plan for expanding its existing refining capacity and fuel retail network as well as launching petrochemicals, natural gas and new-age energy ventures to be able to meet 10% of India’s energy needs, which the state-run company sees quadrupling by 2047.
“Achieving ‘Viksit Bharat @2047’ will require nearly quadrupling the country’s primary energy demand. This rapid growth will position India as a major player in the global energy landscape, contributing approximately 12% of the world’s energy consumption by 2047… BPCL aspires to meet 7-10% of (that) demand,” company chairman G Krishnakumar told shareholders on Friday.
Setting the context for the planned investment, he said India will need to expand refining capacities significantly, increase the share of gas in the energy basket, establish leadership in petrochemical exports and sharply reduce energy imports from the current level of 47% to below 25% by 2030, and to zero by 2047 to fulfil the ambition of becoming a $30 trillion economy.
The company will make the planned investments under ‘Project Aspire’, a five-year strategic framework for growth. Refineries and petrochemicals expansion will hog Rs Rs 75,000 crore, or 44%, of the planned investments, while Rs 32,000 crore will be spent on exploration business. Fuel marketing will get Rs 20,000 crore but renewable energy will get only Rs 10,000 crore. The remaining amount will go into natural gas and city gas distribution ventures.
These investments will enable BPCL to create long-term value for stakeholders while preserving our planet for future generations. “Our healthy balance sheet, currently at zero net-debt at standalone level, allows for these investments without compromising financial stability,” Krishnakumar said.
BPCL plans to treble its city gas distribution infrastructure through strategic acquisitions and enhancing LNG regasification capabilities by 2028-29. It seeks to enhance petrochemicals capacity by 2.4 million tonnes annually by FY 2028-29. It has a renewable energy capacity target of 2 gigawatts (GW) by 2025 and 10 GW by 2035. In the non-fuel arena, it plans to expand convenience stores, quick-service restaurants and wayside amenities with a focus on empowering rural women.
There is also a plan to establish digital energy ventures to incubate future unicorns and scale in-house innovations.