BPCL plans crude oil terminal in Orissa
By Our Corporate Bureau | 03 Dec 2001
Kolkata: Bharat Petroleum Corporation (BPCL) has decided to set up a crude oil import terminal along with a captive jetty at Gopalpur, Orissa. It plans to link this terminal with its proposed refinery at Allahabad with a 800-km-long pipeline.
Talks have already begun with the Orissa state government for acquiring land and the necessary right-of-way for laying the pipeline. The company is in the process of preparing a detailed project report for its mega venture.
The company requires around 300 acres of land close to the coast for setting up the oil terminal that has been proposed to be connected with a 7-million-tonne refinery that the company plans to build at Allahabad.
The grassroot refinery at Allahabad, which was shelved in 1998, was to have been built in collaboration with Royal Dutch Shell. However, the JV partner Shell walked out of the project later.
Preliminary assessments have pegged the cost of the refinery at Allahabad at Rs 8,000 crore, while the pipeline division might require another Rs 2,000 crore. The crude oil jetty will require Rs 600 crore.
The mega project is being planned to meet the additional demand, likely to be generated after the deregulation of the administered price mechanism in April 2002. With refineries at Mahul, Numaligarh and Kochi, BPCL has a capacity of around 18 mt.