BPCL approved Rs 1,138 crore capex for pipeline expansion projects.

BPCL, or Bharat Petroleum Corporation Limited, is a prominent oil and gas enterprise in India. Processing crude oil and supplying petroleum products to Indian consumers is essential to the nation’s ability to meet its energy needs. BPCL is dedicated to guaranteeing the country’s energy security and has a significant presence in both the upstream and downstream segments of the oil and gas industry. BPCL’s three refineries are strategically located across India, which allows the company to efficiently process crude oil and produce a wide range of high-quality petroleum products. These refineries are equipped with state-of-the-art technology and adhere to stringent safety and environmental regulations in order to guarantee sustainable operations.

BPCL approved Rs. 1,138 crore capex:

On Thursday, September 12, BPCL declared that its board of directors had approved a Rs. 1,138 crore capital investment to increase the capacity of the Irugur-Devangonthi Pipeline (IDPL), which is currently under construction, and the Cochin-Coimbatore-Karur Pipeline (CCKPL). As per a stock exchange filing, “…we would like to notify you that the Board of Directors, during its meeting on September 12, 2024, approved the augmentation of the Cochin Coimbatore Karur Pipeline (CCKPL) and Irugur Devangonthi Pipeline (IDPL) along with the setting up of Palakkad TOP Kerala.”

The establishment of an oil storage terminal in Palakkad, Kerala, is another aspect of the expansion. The IDPL pipeline will receive an additional 1.1 MMTPA, increasing its total capacity to 3.5 MMTPA when completed. The capacity of the CCKPL pipeline will increase from 3.3 MMTPA to 7 MMTPA. After obtaining necessary approvals from authorities and acquiring land, the project—which aims to enhance the evacuation of finished petroleum products from BPCL’s Kochi Refinery—should be finished in 36 months. The funding for the investment will come from internal accruals at BPCL.

Bharat Petroleum Corporation Ltd. stock slightly down:

BPCL stock is trading right now at Rs. 341.95 per share, which is nearly 1% down today.

Conclusion: BPCL is prepared to proceed with the ongoing project, worth Rs. 1,138 crore, which will increase revenue.

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