 "HPCL targets 60-mt refining capacity by 2030")
State-run refiner Hindustan Petroleum Corporation (HPCL) plans to operate more than 60 million tonne per annum (mtpa) of refining capacity by 2030, a company official said.
“We plan to have a reasonable capacity and will be 60 mt-plus by 2030,” said M K Surana, chairman & managing director, HPCL. Currently, the company has a total refining capacity of 24.8 mt.
HPCL is also investing a total capital expenditure (capex) of Rs 55,815 crore in the next five years. Of the planned capex, around Rs 25,700 crore is to be spent on expanding refining capacity. At present, the company is expanding capacity at its Mumbai refinery from 6.5 mtpa to 9.5 mtpa, for a project cost of Rs 4,200 crore. It is also expanding its Visakh refinery from 8.3 mtpa to 15 mtpa, for a project cost of Rs 20,800 crore.
HPCL will also hold an equity share in the mega refinery planned, as a joint venture (JV) between three state-run oil companies. State-run Bharat Petroleum Corporation and Indian Oil Corporation are the other two companies to be part of this JV. The mega refinery, planned at 60 mt in two phases, will also help HPCL increase its own exposure to the refining business.
Surana added the current slump in the oil market will not dampen the company’s expansion plans. “We may be surplus now and the trend will continue for some time. But at some point, it is expected demand will take over demand,” he said.
India’s current refining capacity is at 230 mtpa and the country is projected to require 329 mtpa of refining capacity by 2030. The company will also spend Rs 26,160 crore on its marketing business. “We are going at a faster rate in adding our marketing capacity and it will always be ahead of our refining capacity,” Surana added.
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On its expected marketing margins, J Ramaswamy, director-finance, HPCL, said, “Marketing margins grew at five-six per cent year-on-year and we are hopeful it will continue.”
On its planned Rs 37,000 crore Rajasthan refinery, HPCL said it continues to remain at the discussion stage and expects more clarity on this project’s feasibility in the next two-three months. “A committee has been formed and we expect a conclusion in the next two-three months,” said a company official.
For its retail business, the company plans to add another 500 retail outlets by the end of this financial year (FY17). The company currently operates more than 13,802 retail outlets.
OIL’S WELL IN REFINING BIZ
- HPCL is investing a total capex of Rs 55,815 crore in the next five years
- Of the planned capex, around Rs 25,700 crore is to be spent on expanding refining capacity
- The state-run refiner will also spend Rs 26,160 crore on its marketing business
- India’s current refining capacity is at 230 mtpa and the country is projected to require 329 mtpa of refining capacity by 2030