BPCL to go slow on Bina refinery expansion.

Bharat Petroleum has decided to go for a module-wise expansion in capacity of the Bina refinery going forward on account of cash constraints and less-than-expected returns from the refinery.

Under the new plan, Bharat Oman Refineries (BORL), the special purpose vehicle which had built the 6-million tonne per annum (mtpa) Bina refinery, will invest smaller amount to set up smaller modules of 2 mtpa, stabilise the new capacity, generate sufficient returns and invest the returns in setting up the second module.

'Looking at the growth in demand for MS (petrol) and HSD (diesel), we will require a capacity of 12 mtpa at Bina. But at this moment, we have a huge commitment at Kochi too and Bina itself has not been able to deliver cash-positive returns. It is, therefore, difficult to double the capacity,' said BK Datta, director, refineries, BPCL.

THE FINANCIAL EXPRESS