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State-owned <keyword id="20039950" type="General" weightage="20" keywordseo="Bharat-Petroleum-Corporation" source="keywords" meta.keywordsubtype="org" meta.entityname="Bharat Petroleum Corporation" meta.hostid="153" meta.entityid="Bharat Petroleum Corporation">Bharat Petroleum Corporation</keyword> plans to invest Rs 1.7 lakh crore over the next five years to grow its core oil refining and fuel marketing business as well as in 'future big bets' of <keyword id="20115883" type="General" weightage="20" keywordseo="petrochemicals" source="keywords">petrochemicals</keyword> and <keyword id="19895435" type="General" weightage="20" keywordseo="green-energy" source="keywords">green energy</keyword>, its chairman G Krishnakumar has said. At present, Bharat Petroleum Corporation Ltd (<keyword id="19908646" type="General" weightage="100" keywordseo="BPCL" source="keywords" meta.keywordsubtype="org" meta.entityname="BPCL" meta.hostid="153" meta.entityid="BPCL">BPCL</keyword>) owns about 14 per cent of India's oil <keyword id="20064251" type="General" weightage="20" keywordseo="refining-capacity" source="keywords">refining capacity</keyword> and about a quarter of the fuel retailing network. It plans to grow these businesses while foraying into newer areas. The firm is now implementing the first phase of a multi-decade aspirational journey in the form of '<keyword id="22826627" type="General" weightage="20" keywordseo="project-Aspire" source="keywords">Project Aspire</keyword>' - its five-year strategic framework that is based on two fundamental pillars - 'Nurturing the Core' and 'Investing in Future Big Bets', he said in the company's latest annual report. "Our mid-term strategy is on a continuum. While we remain committed to growing our core businesses, which include refining and marketing <keyword id="20037698" type="General" weightage="20" keywordseo="petroleum-products" source="keywords">petroleum products</keyword> and upstream, we are equally focused on our big bets comprising petrochemicals, gas, green energy, non-fuel retail, and digital. "Project Aspire, with a planned capex outlay of around Rs 1.70 lakh crore over five years, will enable us to create long-term value for our stakeholders while preserving our planet for future generations," he said. "A cornerstone of our long-term strategy, Project Aspire, with a Rs 1.70 trillion investment, marks the initial phase of our multi-decade odyssey to shape the energy of tomorrow. This, coupled with our robust balance sheet, fuels our ambition to lead the <keyword id="19951336" type="General" weightage="20" keywordseo="energy-transition" source="keywords">energy transition</keyword>." The company is targeting net zero carbon emissions from its operations by 2040. "BPCL has drawn a net-zero roadmap, which encompasses renewable power, green hydrogen, compressed biogas, carbon capture, utilisation, and storage (CCUS), efficiency improvement and the offsets procurements. This would require a phased capital outlay of approximately Rs 1 lakh crore till 2040, and the company is geared for the same," he said. The firm's bet on continuing investing in core businesses is based on the premise that India's booming economy will drive a 4-5 per cent annual increase in energy demand and petroleum product consumption. Also, the demand for major petrochemical products is expected to rise by 7-8 per cent annually. "This presents a strategic opportunity to expand refining capacity alongside the development of integrated petrochemical complexes," he said. BPCL is implementing new petrochemical projects at two of its three oil refineries. A Rs 49,000 crore ethylene cracker project is being implemented at the Bina refinery in Madhya Pradesh, alongside raising oil refining capacity from the current 7.8 million tonnes to 11 million tonnes annually by 2029. A polypropylene project is being set up at Kochi refinery in Kerala by 2027. "To meet the anticipated demand beyond our planned expansions in Bina and Kochi, we are actively evaluating options for setting up additional integrated refining and petrochemical capacities within the next 5-7 years," Krishnakumar said without disclosing either the investments or the location of such a project. Andhra Pradesh is being speculated as the likely site after Prime Minister Narendra Modi's BJP and regional party TDP stormed to power in the state in recently concluded assembly elections. TDP has been demanding the implementation of a refinery-cum-petrochemical complex that was promised as part of the package when the state was split more than a decade back. "Our investment in the petrochemical project is consistent with our aspiration of becoming a dominant player in India's petrochemical growth story," Krishnakumar said. On energy transition, he said BPCL is targeting to build 2 gigawatts (GW) of <keyword id="19895602" type="General" weightage="20" keywordseo="renewable-energy" source="keywords">renewable energy</keyword> capacity by 2025 and 10 GW by 2035. "We are investing nearly Rs 1,000 crore to establish two 50 MW captive wind power plants in Maharashtra and Madhya Pradesh, which will support our refineries in Mumbai and Bina." The firm is also investing around Rs 300 crore in 72 MWp of solar project in Prayagraj, Uttar Pradesh. "Concomitantly, we are executing green hydrogen projects aligned with the National Green Hydrogen Mission. These projects include a 5 MW electrolyser plant at Bina refinery and a green hydrogen refuelling station with an indigenously developed electrolyser at Kochi," he noted. BPCL, he said, is committed to supporting the transition to electric mobility through a robust and accessible charging infrastructure. The company has installed over 3,000 charging stations, including fast chargers for cars and two-wheelers. 900 fast chargers are installed across 120 highway corridors, which helps address the range, discovery and time anxiety of electric vehicle (EV) owners. "Over the next five years, we aim to install 4-wheeler fast chargers at approximately 6,000 retail outlets across 400 highway corridors, prioritising high-traffic corridors like the Golden Quadrilateral and N-S/E-W highways," he said. On biofuels, he said BPCL sells petrol with 20 per cent ethanol blend at 4,279 out of its over 22,000 petrol pumps. It is also building compressed biogas plants using municipal solid waste to make gas that can be used as CNG in automobiles. The firm is also exploring partnerships in the arena. "These combined efforts, along with the upcoming commissioning of a bio-ethanol refinery, positions BPCL as a key player in India's transition to a greener fuel mix, creating a robust ecosystem for the adoption of cleaner fuels across the country," he added. BPCL is establishing a corporate venture capital fund to invest directly in promising startups. "In order to thrive in this complex and challenging business landscape, we will leverage our agility and focus on operational excellence to ensure continued success. Safety and reliability will remain our top priorities, guiding all our actions. We are committed to upholding the highest standards of corporate governance," he added. He said the energy sector of India stands at an inflection point. "The nation has an ambitious vision of becoming a USD 30 trillion developed economy by 2047. 'Viksit Bharat @2047' will necessitate an almost fourfold increase in primary energy demand." India's exponential growth trajectory will propel it to a pivotal role in the global energy market, accounting for roughly 12 per cent of world energy consumption by 2047. "The key strategic objectives for India in the energy sector will entail significant expansion in refining capacities, raising the share of gas in the energy basket from about 6 per cent to 15 per cent, establishing leadership in petrochemical exports, and sharply reducing energy imports from current levels of 47 per cent to below 25 per cent by 2030 and to zero by 2047," he said. India is targeting 500 GW of non-fossil fuel energy capacity, sourcing half of its energy needs from renewables, reducing carbon emissions by 1 billion tonnes and lowering carbon intensity by 45 per cent by 2030 with the ultimate goal of net-zero emissions by 2070. "Building on its strong Indian energy presence, BPCL aspires to meet 7-10 per cent of the nation's primary energy demand by 2047," he said.

BPCL planning Rs 1.7 lakh crore spend to expand core business, new energy foray over next five years

New Delhi, Feb 4 () The Oil Ministry has moved a cabinet note seeking approval for hiving off state-owned gas utility GAIL (India) Ltd's pipeline business into a separate entity for a possible sale to a strategic investor at a later date, sources privy to the development said.
 GAIL is India's biggest natural gas marketing and trading firm and owns more than 70 per cent of the country's 16,981-km pipeline network, giving it a stranglehold on the market.
 Users of natural gas have often complained about not 'fairly' getting access to GAIL's 12,160-km pipeline network to transport their fuel.
 Sources said to resolve the conflict arising out of the same entity owning the two jobs, bifurcating GAIL is being considered.
 GAIL's core business after the bifurcation would be the marketing of natural gas and petrochemical production. It will have to hire capacity on pipelines from the subsidiary and pay regulator approved traffics for the same.
 It will continue to execute the gas sales agreements it has already signed and will be responsible for the discharge of the obligation under purchase pacts including for import of LNG.
 The Ministry last month floated a note for consideration of the Union Cabinet for transferring the pipeline business into a 100 per cent subsidiary.
 The proposal involves separating the accounts of the pipeline division as well as transferring employees directly connected with the pipeline operations to the new subsidiary, they said adding a suitable name for the subsidiary is being mulled over.
 The Cabinet, they said, is likely to consider the proposal shortly.
 After the Cabinet approval, a consultant will be appointed to transfer the pipeline business into a separate subsidiary. This would take 8-10 months to accomplish.
 Sources said the pipeline subsidiary may be sold off to a strategic investor but the sale is not likely before 2022 as the thinking in the government is that the gas market will not be mature before that and state support would be needed for GAIL to accomplish building a national gas pipeline grid.
 The government had recently approved viability gap funding for a gas pipeline grid in the North-East which a consortium comprising GAIL and other state-owned firms will be executing.
 GAIL will continue to own the marketing business as also the stakes in liquefied natural gas (LNG) terminals after the split, they said.
 Previously, the government was considering transferring marketing business into a separate subsidiary for a sell-off at a later date but now a hive off of the pipeline business is being considered.
 GAIL has multiple long-term contracts to import gas in its liquid form (LNG) from countries such as the US and no strategic buyer would like to take the responsibility of those, particularly when the fuel is available at a cheaper price in the spot or current market, the sources said.
 They said it is now being considered that GAIL continues with the marketing business that would include all the sale contracts as also city gas retailing.
 Post-2022, the pipeline business can be sold to a strategic investor such as Canadian asset management company Brookfield that recently bought a 1,480-km pipeline owned by Mukesh Ambani's Reliance Industries (RIL).
 The sources said the strategic partner will operate the pipelines and give access on a non-discriminatory basis to any entity wanting to transport gas either from a natural gas field or an LNG import terminal to consumers.
 GAIL already keeps separate accounts for its gas pipeline and marketing businesses, making it easier to split them into two entities.
 By unbundling GAIL and opening the sector, the government hopes to increase gas use to 15 per cent of the energy mix by 2030 from current 6.2 per cent.
 When talk of splitting first started in January last year, Oil Minister Dharmendra Pradhan had stated that GAIL should focus on laying pipelines, suggesting hiving off the marketing business.
 Incorporated in August 1984 by spinning off the gas business of ONGC, GAIL owns and operates over 11,500-km of natural gas pipelines in the country. It sells around 60 per cent of natural gas in the country.
 The sources said the oil ministry has not been very happy with GAIL's performance in building the pipeline network. Besides, there is a possible conflict of interest in its role as an infrastructure provider and carrier.
 GAIL did not start executing the Rs 12,940 crore Jagdishpur-Haldia and Bokaro-Dhamra pipeline until the government agreed to give 40 per cent of the project cost as a grant from the budget. The pipeline takes the gas to Prime Minister Narendra Modi's constituency, Varanasi.
 Plans to split the company had been discussed more than a decade back too but these did not materialise.
 The sources said refiners Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL) had in 2017 evinced interest in acquiring GAIL to expand their gas marketing business.
 GAIL also owns a petrochemical plant at Pata in Uttar Pradesh.
 The company had in the past resisted the split on grounds that it's gas marketing and transmission businesses operate at arm's length and hence do not need to be separated.
 GAIL's marketing business formed 76 per cent of its 2018-19 total sales and about 30 per cent pre-tax profit.
 The government has a 54.89 per cent stake in GAIL India. ANZ ANZ ANU
ANU

Oil Min moves Cabinet note for splitting GAIL; pipeline business may be sold later

<ul><li><keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s <keyword id="6355199" type="COMPANY" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> is reportedly in talks to sell a 25% stake in its <keyword id="6394038" type="UNKNOWN" weightage="20" keywordseo="refinery">refinery</keyword> and petrochemicals unit to <keyword id="152170" type="COMPANY" weightage="20" keywordseo="Saudi-Aramco">Saudi Aramco</keyword>. </li><li>The deal with Aramco - dubbed the world’s most profitable company after it reported a net income of $111 billion last year (twice as much as Apple) - is expected to net $10 billion for Reliance. </li><li>The deal will allow Reliance to finance the expansion of its refinery in <keyword id="6361405" type="LOCATION" weightage="20" keywordseo="jamnagar">Jamnagar</keyword>, Gujarat. </li></ul>Mukesh Ambani’s Reliance Industries is reportedly in talks to sell a 25% stake in its refinery and petrochemicals unit to Saudi Aramco, the state-owned <keyword id="6359072" type="UNKNOWN" weightage="20" keywordseo="oil">oil</keyword> company of <keyword id="50996" type="LOCATION" weightage="20" keywordseo="Saudi-Arabia">Saudi Arabia</keyword>, according to a <a href="https://www.bloomberg.com/news/articles/2019-04-17/reliance-said-to-weigh-refinery-unit-stake-sale-to-aramco-adnoc">Bloomberg </a>report citing sources. The deal with Aramco - dubbed <a href="https://www.nytimes.com/2019/04/01/business/saudi-aramco-profit.html">the world’s most profitable company</a> after it reported a net income of $111 billion last year (twice as much as Apple) - is expected to net $10 billion for Reliance. Markets responded positively to the news, with Reliance's share price up by more than 2% at the close of trading yesterday. In fact, Hemang Jani, the Senior VP of Sharekhan, told ET that he expected a 12-14% upside for Reliance's shares, given the benefit of securing a deep-pocketed investor for one of it's core operations. However, discussions are still at an early stage, They follow <a href="https://www.theweek.in/news/biz-tech/2018/12/18/saudi-arabia-reliance-refinery-petrochem.html">a round of talks </a>in December between Ambani and Khalid al Falih, Saudi Arabia’s oil minister, over potential petrochemical and refinery investments in India. Interestingly, the latter also made it to the wedding of Ambani’s son Akash <a href="https://www.telegraphindia.com/business/saudi-oil-minister-on-second-india-visit/cid/1686508">last month</a>. The refinery and petrochemicals business is extremely important to Reliance’s bottom line, contributing <a href="https://www.livemint.com/companies/news/reliance-eyes-higher-valuation-for-refining-arm-in-likely-aramco-deal-1555500439610.html">three-quarters of its operating profit</a>. The deal makes sense for Reliance. “It is eyeing the expansion of its refinery in Jamnagar and wants to get another investor on board” says Deven Choksey, MD of K R Choksey Securities. “Reliance wants to increase the capacity of the refinery to 100 million tonnes” adds Choksey. “Hence, the investment from Aramco will strengthen its balance sheet, divide the risk and fund the addition of a new plant at the refinery”. Furthermore, the conglomerate will likely use the proceeds from the deal to pay down its increasing debt obligations, which have ballooned <a href="https://www.bloomberg.com/news/articles/2019-04-17/reliance-said-to-weigh-refinery-unit-stake-sale-to-aramco-adnoc">to $32 billion</a> by the end of 2018, following investments in its telecommunications business, Jio. Aramco has also been eyeing the Indian market for a while now and the deal with Reliance will give it a stronger presence in the country’s downstream energy sector. However, that isn’t the only investment it is weighing. Last July, Saudi Aramco and ADNOC, Abu Dhabi’s state oil firm, decided to join hands <a href="https://www.businessinsider.in/saudi-arabia-has-big-plans-for-indias-energy-sector/articleshow/66236777.cms">on a $44 billion refinery project </a>in <keyword id="94802" type="LOCATION" weightage="20" keywordseo="Ratnagiri">Ratnagiri</keyword>, which is in the Indian state of Maharashtra. The two state-backed oil producers are taking a 50% stake in the Ratnagiri project, which is expected to produce 1.2 million barrels per day, while the other half will be owned by a consortium of Indian refiners such as IOC and BPCL. Sources say that Aramco <a href="https://www.thehindubusinessline.com/companies/aramco-will-stay-committed-to-ratnagiri-project/article26866612.ece">is still committed to the Ratnagiri project,</a> regardless of the outcome of deal talks with Reliance. SEE ALSO: <a href="https://www.businessinsider.in/aramco-heres-everything-you-need-to-know-about-the-worlds-most-profitable-companys-debut-bond/articleshow/68814827.cms">Aramco: Here's everything you need to know about the world's most profitable company's debut bond</a> <a href="https://www.businessinsider.in/mukesh-ambani-versus-amazon-walmart-in-india/articleshow/68918092.cms">Mukesh Ambani is clearing the way for the launch of his e-commerce business</a>

Mukesh Ambani might net billions by selling a stake in his refinery business to the ‘world’s most profitable company’

New Delhi, Feb 2 () ONGC, IOC and other oil PSUs will invest over Rs 98,521 crore in the coming fiscal starting April 1 in exploring for oil and gas, refineries, petrochemicals and laying pipelines to meet needs of the world's fastest-growing energy consuming nation.
 The investment proposed in 2020-21 is almost 4 per cent higher than Rs 94,974 crore spending by the state-owned oil firms in the current fiscal year that ends on March 31, according to Budget 2020-21 documents.
 Oil and Natural Gas Corp (ONGC) leads the pack with a 19 per cent rise in its capital spending at Rs 32,501 crore. The company is investing in finding new reserves of oil and gas and bringing to production discoveries it has already made. It is developing discoveries on both east and west coast of the country.
 The top oil producer's overseas arm, ONGC Videsh Ltd (OVL) will invest almost 10 per cent more at Rs 7,235 crore in oil and gas operations abroad.
 Indian Oil Corp (IOC), the country's top oil refiner, will see a 17.4 per cent rise in spending to Rs 26,233 crore with the bulk of it in expansion and upgrade of its seven refineries that produce fuel.
 IOC will also see investment in petrochemical business almost double to Rs 3,387.5 crore while its exploration spends quadruples to Rs 2,150 crore.
 Privatisation-bound Bharat Petroleum Corp Ltd (BPCL) has proposed a 14 per cent higher capital spending at Rs 9,000 crore, two-third of which will be in its core refining business.
 Gas utility GAIL India Ltd will not see any major increase in its investments at Rs 5,412 crore as most of its pipeline grid expansion projects are nearing completion.
 Hindustan Petroleum Corp Ltd (HPCL), a subsidiary of ONGC, will invest Rs 11,500 crore in FY21, the same as the previous year.
 Oil India Ltd, the nation's second-largest oil producer, will invest Rs 3,877 crore next year as compared to Rs 3,675 crore in current fiscal.
 In her second budget, Finance Minister Nirmala Sitharaman had on Saturday laid down plans for expansion of national natural gas pipeline network to 27,000 km from the present 16,200 km and pricing reforms as the government looks at boosting the use of environment-friendly fuel.
 The government has set a target of raising the share of natural gas in primary energy basket to 15 per cent by 2030 from current 6.2 per cent. Connecting gas sources to consumption hubs is key to achieving this.
 Presently, most of the gas pipelines are concentrated in the western and northern part of the country with a few lines in the east and south.
 "To deepen gas markets in India, further reforms will be undertaken to facilitate transparent price discovery and ease of transactions," she had said.
 Presently, the price of natural gas produced domestically is fixed by a formula that averages out rates in gas surplus nations such as Russia and the US.
 "Further, it is proposed to expand the national gas grid from the present 16,200 km to 27,000 km," she said without giving a timeline. ANZ MKJ

You Searched For "BPCL core business" and got 4 results

BPCL planning Rs 1.7 lakh crore spend to expand core business, new energy foray over next five years

PTI

Oil Min moves Cabinet note for splitting GAIL; pipeline business may be sold later

PTI

Mukesh Ambani might net billions by selling a stake in his refinery business to the ‘world’s most profitable company’

Dilsher Dhillon

ONGC, IOC, other oil PSUs to invest Rs 98,521 cr in FY21

PTI

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