Indian Prime Minister (PM) Narendra Modi has laid the foundation stone for Bharat Petroleum Corporation Limited (BPCL)’s INR490bn ($5.9bn) Bina refinery expansion project in Madhya Pradesh state.
The project was announced by BPCL in May 2023 with the intent to address the surging demand of petroleum products across central and northern India.
It is designed to produce nearly 1,200 kilo-tonnes per annum (KTPA) of ethylene and propylene, which are important components for various sectors such as textiles, pharma, packaging, and others.
BPCL had previously revealed that the central element of the expansion project is the ethylene cracker project, which is designed to boost the production of vital petrochemicals.
In addition to the new ethylene cracker, the state-owned Indian oil and gas company plans to set up downstream petrochemical plants and associated facilities.
Overall, the expansion initiative aims to increase the Bina refinery’s capacity from 7.8 million tonnes per annum (mmtpa) to 11mmtpa.
BPCL also expects the expanded project to supply the necessary feedstock for the ethylene cracker complex, while the petrochemical facility will meet the increasing domestic demand for petrochemical products.
Located at Bina Etawa in Sagar district, the Bina oil refinery was placed into service in 2011.
According to the Indian Ministry of Petroleum & Natural Gas, the Bina refinery expansion project will reduce the nation’s reliance on imports to further align with the Prime Minister’s ‘Aatmanirbhar Bharat’ objective.
Located in the Bundelkhand region, the refinery project is expected to generate job prospects and stimulate growth in downstream industries within the petroleum sector, said the ministry.
Prime Minister Modi said: “I guarantee you that the Petrochemical Complex at Bina Refinery will spur growth in the entire region and take development to new heights.”
Indian Petroleum & Natural Gas Minister Hardeep Singh Puri said that the project will not only strengthen India’s dedication to sustainable industrial expansion but also position the nation as a worldwide leader in the petrochemical sector.
Globally, India currently holds the sixth position in the petrochemical field, with a market potential of around INR155.8bn ($1.88bn). This is projected to reach INR820bn ($9.87bn) by 2040, said the ministry.
