India's second-largest state refiner, Bharat Petroleum Corp. Ltd. (BPCL), plans to more than double the capacity of its Bina refinery from 120,000 bbl/d to about 310,000 bbl/d within four to five years.
The refinery, located in central India, is operated by Bharat Oman Refineries (BORL) in partnership with Oman Oil Company (74% BPCL and 26% Oman Oil Company). The company is already expanding the capacity to 156,000 bbl/d by mid-2018, at a cost of Rs 200-250bn (US$3-3.75bn).
In September 2016, BPCL announced that it was considering an IPO to fund the expansion project. In addition, BPCL is currently raising the capacity of its Kochi refinery (+63% to 310,000 bbl/d by September 2017) and aims to expand it to 400,000 bbl/d by 2022.
BPCL bets on the fast-growing Indian market, expecting an average economic growth of 7-8%/year, pulling a 6-7%/increase in fuel consumption for the next ten to fifteen years. Overall, India aims to expand its refining capacity by 35% to 6.2 mbl/d to meet rising demand.