HPCL to invest Rs 74,000 cr in five years

Hindustan Petroleum Corporation (HPCL) intend to invest an amount of around Rs 74,000 crore (US$ 10.28 billion) in the next five years to expand capacity.

According to Chairman Mr Mukesh Kumar Surana, the Navaratna company plans to invest around Rs 14,900 crore (US$ 2.07 billion) in the current fiscal. This investment will be focused on improving refining and marketing through expansion of refining capacity, supply chain capabilities and customer reach.

The company plans to scale up its footprints in natural gas and expand overseas market along with its presence in petrochemicals. The company, which currently owns and operates three refineries, has assumed capacity expansion at refineries at Visakhapatnam and Mumbai.

The transformation of the Visakhapatnam refinery will improve capacity from 8.33 million tonnes to 15 mt. The capacity of the Mumbai refinery is also being enhanced from 7.5 mt to 9.5 mt.

Surana added that the 9 mt greenfield refinery-cum-petrochemical project coming up at Pachpadra in the Barmer district of Rajasthan has accomplished considerable progress.

The company is in process of laying a thrust on pipeline network expansion. Ongoing pipeline projects with total estimated investment of Rs 5,555 crore (US$ 0.77 billion) are in different stages of completion.

The company also intends to develop second-generation ethanol production facilities, and market compressed biogas. Its net profit for fiscal 2019 stood at Rs 6,029 crore (US$ 0.83 billion) and gross refining margins (GRM) averaged at US$ 5.01 a barrel.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.