Hindustan Petroleum Corp. liquefied petroleum gas (LPG) cylinders sit stacked at a depot. (Photographer: Dhiraj Singh/Bloomberg)

HPCL Plans To Invest Rs 8,100 Crore In FY19

Hindustan Petroleum Corporation Ltd. plans to spend around Rs 8,100 crore in the current fiscal, mainly for the expansion of Visakh and Mumbai refineries.

“This year, our two main projects are the expansion of Visakh and Mumbai refineries,” said Mukesh Kumar Surana, chairman and managing director at the oil marketing company. The company plans to increase the capacity of its Vishakapatnam refinery to 15 mmtpa from from 8.33 million metric tonnes per annum at a cost of Rs 20,928 crore. The Mumbai refinery expansion to 9.5 mmtpa from 7.5 mmtpa, he said, would cost the company another Rs 5,060 crore.

The oil marketer also plans to invest another Rs 5,400 crore in the 5 mmtpa liquified natural gas regasification terminal coming up at the Chhara port in Gujarat. The project, which will get commissioned by 2019, will use a combination of term contracts with natural gas suppliers and spot markets to source the gas, Surana said.

These investments fit into HPCL’s Rs 75,000-crore expansion plan for the next five years, which will include capacity addition of refineries, expansion of gas pipeline network and other business segments.

Watch the interview here