Oil marketing major Bharat Petroleum Corporation Ltd. (BPCL) has said that the final commissioning of the expansion project of its Kochi Refinery is expected to happen by the end of August. The company said that it is studying possibilities of setting up an LNG terminal.
Speaking to reporters on the sidelines of an announcment of revised commission for its dealers and the benefits it would bring in for the company, D Rajkumar, Chairman and Managing Director of BPCL said, "Kochi refinery expansion has already been completed. While the original plan was to spend around Rs 16,800 crore, we have been able to complete the entire project at approximately Rs 16,000 crore. Mechanically, the project has been completed and the commissioning process is on."
With the final commissioning, the company expects the capacity of the facility to go up from 9.5 million metric tonnes per annum (mmtpa) to 15.5 mmtpa, over a period of time.
The BPCL Kochi Refinery at Ambalamugal, near Kochi in Kerala, has a crude oil refining capacity of 9.5 mmtpa. The product portfolio of the 190,000 barrels a day refinery includes petrochemical feedstocks and specialty products in addition to its range of quality fuels, according to the company.
The company is also looking at an LNG terminal, and is studying the demand and other aspects of the market. It is keen on tapping the growing opportunity in the gas fuel market in the country, Rajkumar added.
BPCL today said that the company has revised the dealers'commission between 20-50 per cent based on their category, which would help it to improve the brand image and provide benefits to the dealers, employees working in the petrol pumps and the customers. Prior to the latest revision, the return on fixed assets for dealers was changed 20 years ago. BPCL recently commissioned a study by IIM Bangalore and it was on the basis of their recommendation the return was revised recently, he said.