HPCL to invest Rs. 45,000 crore

HPCL 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.

Hindustan Petroleum Corporation Ltd. (HPCL) plans to invest rS. 45,000 crore by 2020 in capacity expansion of its Mumbai and Visakhapatnam refineries, besides to augment 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. 

A total of Rs. 14,000 crore would be spent on joint venture refinery projects, natural gas business and upstream oil exploration, according to HPCL.

HPCL 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.

Another Rs. 17,000 crore would be spent on expanding its Visakhaptnam refinery to 15 MTPA capacity, from the current 8 MTPA. 

The investments would help the company produce products confirming to Euro V/VI emission specification, HPCL said. 

US$350 million is planned to be spent in raising capacity of the 9 MTPA Bhatinda refinery to 11.25 MTPA, it said. 

HPCL is also partnering Mumbai-based Shapoorji Pallonji to set up a 5 MTPA liquefied natural gas (LNG) import terminal at Chhara port in Gujarat, at an investment of INR 5,411 crore. 

"The financial closure for the project has been completed," HPCL said. 

While HPCL holds a 50 per cent stake in the project, SP Ports, a unit of the Shapoorji Pallonji Group, holds the balance. 

The company is also planning to invest INR 1,782 crore in laying new pipelines, fuel depots and LPG plants.