New Delhi : State-run oil marketing company (OMC) Hindustan Petroleum Corp Ltd (HPCL) plans to invest Rs.45,000 crore by 2020 in capacity expansion of its Mumbai and Visakhapatnam refineries, along with augmenting of its marketing infrastructure.
While Rs.21,000 crore would be invested in increasing refining capacity, Rs.9,000 crore would be spent in marketing infrastructure, till 2020, the company said in an investor presentation over the weekend, as communicated to the stock exchange.A total of Rs.14,000 crore would go into joint venture refinery projects, natural gas business and upstream oil exploration, The oil marketer will invest Rs.4,199 crore in expanding its Mumbai refinery capacity to 9.5 million tonnes per annum (MTPA) from the existing 6.5 MTPA, and another Rs.17,000 crore in expanding its Visakhaptnam refinery to 15 MTPA capacity, from the current 8. HPCL said the investments would also help the company produce “products confirming to Euro V/VI” emission specification.
It also said $350 million is planned to be spent in raising capacity of the 9 MTPA Bhatinda refinery to 11.25 MTPA. “Additional volumes would cater to growth in demand in northern India,” it said. HPCL and steel baron Lakshmi N. Mittal are equal partners in the Bhatinda refinery in Punjab. HPCL and Mittal Investment Sarl hold 48.94 percent stake each in HPCL-Mittal ENergy Ltd while the balance is with financial institutions. The company is also partnering Mumbai-based infrastructure major Shapoorji Pallonji to set up a 5 MTPA liquefied natural gas (LNG) import terminal at Chhara port in Gujarat, at a cost of Rs.5,411 crore.