#NSE0059– Bharat Petroleum Corporation Ltd (BPCL) seems to be a significant player in the Indian petroleum industry with the market capitalization reaching ₹1.49 lakh crore in February 2024. As a public sector company, BPCL is primarily involved in refining crude oil and marketing various petroleum products.
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Bharat Petroleum Corporation Ltd (BPCL) appears to have strategically located three refineries with a total refining capacity of 35.30 million metric tons per annum (MMTPA). STRATEGIC BUSINESS UNITS 9 Subsidiaries & JV 24 EMPLOYEES 8,613.
- Total Pipeline Length: BPCL’s pipeline infrastructure spans a total length of 3,537 kilometers. This network comprises both product pipelines and crude oil pipelines.
- Product Pipelines: The product pipelines cover a distance of 2,600 kilometers. These pipelines are used to transport various petroleum products from refineries to terminals, depots, and distribution centers across different regions.
- Crude Oil Pipelines: BPCL’s crude oil pipelines extend over a distance of 937 kilometers. These pipelines are dedicated to transporting crude oil from oil fields or import terminals to refineries for processing.
- Design Capacity: The design capacity of BPCL’s pipeline infrastructure is stated to be 29 million metric tons per annum (MMTPA). This capacity is further broken down into:
- Product Capacity: 21.3 MMTPA, indicating the volume of petroleum products that can be transported through the product pipelines annually.
- Crude Capacity: 7.8 MMTPA, representing the volume of crude oil that can be transported through the crude oil pipelines annually.
Shareholding (March2024)
- Promoters: They hold a majority stake in the company, with a 52.98% ownership.
- Foreign Institutional Investors (FIIs): They own 16.79% of BPCL, indicating international interest in the company.
- Domestic Institutional Investors (DIIs): They hold 21.30% of BPCL, suggesting significant domestic institutional support.
- Government: The government holds a 0.94% stake in BPCL.
- Public: The remaining 8% is owned by the general public.
Recent projects undertaken by Bharat Petroleum Corporation Ltd (BPCL) showcase the company’s focus on diversification, modernization, and enhancing its capabilities across various segments of the petroleum industry:
- Kochi Refinery – MS Block Project for BS VI Grade Gasoline and Maximization of Naphtha to Gasoline (₹ 32.89 Bn): This project involves upgrading the Kochi Refinery to produce BS VI grade gasoline, meeting stringent emission standards. Additionally, it aims to maximize the conversion of naphtha into gasoline, enhancing the refinery’s efficiency and product quality.
- Augmentation of LPG Cryogenic Facilities at Uran (₹ 12.31 Bn): This project focuses on expanding and modernizing BPCL’s LPG cryogenic facilities at Uran, Maharashtra. It aims to enhance the company’s capacity to handle and distribute liquefied petroleum gas (LPG), supporting the growing demand for clean cooking fuel.
- Kochi – Diversification into Niche Petrochemicals PDPP Project (Acrylic Acid, Oxoalcohol, Acrylates) (₹ 62.85 Bn): This diversification project involves setting up a Petrochemicals Petrochemicals Diversification Project (PDPP) at the Kochi Refinery. It aims to produce niche petrochemicals such as acrylic acid, oxoalcohol, and acrylates, tapping into higher-value markets.
- Retail Infrastructure: Coastal Terminal at Krishnapatnam and Jammu Installation (₹ 12.57 Bn): This project involves establishing a coastal terminal at Krishnapatnam and installing retail infrastructure in Jammu. It aims to expand BPCL’s distribution network and enhance its presence in key strategic locations.
- Bina Kanpur Product Pipeline (₹ 12.24 Bn): This project entails the construction of a product pipeline connecting the Bina Refinery to Kanpur, Uttar Pradesh. It aims to improve the transportation infrastructure for petroleum products, enabling efficient distribution to the northern region of India.
- 2G Ethanol Refinery at Bargarh, Odisha (₹ 16.07 Bn): This project involves setting up a second-generation (2G) ethanol refinery in Bargarh, Odisha. It aims to produce ethanol from agricultural residues and biomass, supporting the government’s initiatives to promote renewable energy and reduce carbon emissions.
BPCL’s upcoming projects and investments reflect its strategic initiatives aimed at expanding its presence and capabilities across different geographies and business verticals. Here’s a breakdown of the mentioned projects:
- Investments in Mozambique and Brazil: BPCL is investing in projects in Mozambique and Brazil, indicating its commitment to international expansion and tapping into opportunities in these regions. These investments may include exploration and production activities, refinery expansions, or strategic partnerships to access resources and markets.
- Development of 25 Geographical Areas: This initiative likely involves the development and exploration of 25 geographical areas to identify and exploit potential oil and gas reserves. These areas could be located in India or abroad and represent strategic opportunities for BPCL to expand its upstream operations.
- Expansion of Marketing Infrastructure: BPCL is expanding its marketing infrastructure across all business verticals, indicating efforts to enhance distribution networks, retail outlets, and customer reach. This expansion aims to support the growing demand for petroleum products and strengthen BPCL’s position in the market.
- 2.2 MMTPA Ethylene Cracker at Bina Refinery: The construction of a 2.2 million metric tons per annum (MMTPA) ethylene cracker at the Bina Refinery signifies BPCL’s foray into petrochemicals and value-added products. Ethylene is a key building block for various petrochemical derivatives, and this project aims to enhance BPCL’s product portfolio and competitiveness.
- 400 KTPA Propylene Production: Alongside the ethylene cracker project, BPCL is likely planning to produce 400 thousand metric tons per annum (KTPA) of propylene, another important petrochemical feedstock. This project will further diversify BPCL’s product range and support its downstream petrochemical operations.
- Cross Country LPG Pipeline from Kandla to Gorakhpur through a JV: The construction of a cross-country LPG pipeline from Kandla to Gorakhpur through a joint venture (JV) underscores BPCL’s efforts to enhance its LPG infrastructure and distribution network. This pipeline will enable efficient transportation of LPG to cater to growing demand and ensure reliable supply across multiple regions.
Bharat Petroleum Corporation Ltd (BPCL) has made significant strides in securing its liquefied natural gas (LNG) supply, ensuring supply security and reliability. Here’s a breakdown of its LNG supply agreements:
- Long-term Tie-ups at Dahej:
- BPCL has secured long-term LNG tie-ups totaling 0.85 million metric tons per annum (MMTPA) at the Dahej terminal.
- These agreements are valid until 2028, providing BPCL with a stable and predictable LNG supply source for its operations.
- Long-term Tie-ups at Kochi:
- BPCL has secured long-term LNG tie-ups totaling 0.56 MMTPA at the Kochi terminal.
- These agreements are valid until 2036, further extending BPCL’s LNG supply security from the Kochi terminal.
- Additional Supply at Kochi:
- BPCL has secured an additional 0.48 MMTPA of LNG supply, which is set to commence from 2026 onwards.
- This supplementary supply agreement spans 15 years, enhancing BPCL’s LNG supply capacity and flexibility at the Kochi terminal.
- LNG Supply from Mozambique:
- BPCL has secured a significant LNG supply agreement of 1 MMTPA from Mozambique.
- This agreement spans 15 years, indicating a long-term commitment to LNG procurement from Mozambique, a key LNG-producing region.
Bharat Petroleum Corporation Ltd (BPCL) has a significant presence in the City Gas Distribution (CGD) sector, operating across various geographical areas (GAs) in India. Here’s a breakdown of its CGD operations:
- Geographical Areas (GAs):
- BPCL operates in a total of 50 GAs, either as wholly-owned entities or through joint ventures (JVs) with other companies.
- These GAs represent specific geographic regions or cities where BPCL is authorized to distribute natural gas to residential, commercial, and industrial consumers.
- Population Coverage:
- BPCL and its joint ventures cover approximately 19% of the total population of India.
- This indicates the significant reach of BPCL’s CGD operations, with a focus on serving a substantial portion of the country’s population with clean and affordable natural gas.
- Area Coverage:
- BPCL and its JVs cover around 14% of the total geographical area of India.
- Despite covering a smaller area compared to population coverage, this still represents a sizable geographic footprint for BPCL’s CGD operations.
- Volume Coverage:
- Despite covering a smaller area and population, BPCL and its JVs contribute to approximately 32% of the total volume of natural gas distributed in the country.
- This highlights the efficiency and effectiveness of BPCL’s CGD operations in terms of volume throughput and market share.
Disclaimer-
It’s important to note that discussions like are for informational purposes only and should not be taken as specific We are not SEBI registered investment advisor. Whether analyzing a company’s financial health, examining market trends, or discussing technical chart patterns, the goal is to provide insights and perspectives that can help you make more informed decisions according to your own research and investment strategy. Always consider consulting with a financial advisor or conducting thorough personal research before making any investment decisions.
