Bharat Petroleum Corporation (BPCL) has planned
to set up a base oil production facility at its existing refinery in Mumbai. The
1.8 lakh tpa unit costing Rs.318 crore is outside the purview of the company's
ongoing modernisation and expansion programme.
Base oil is the principal raw material for
producing industrial and automotive lubricants. The new unit would help reduce
the company's dependence of this raw material from imports and other refineries
like HPCL.
The recent upswing in crude oil prices has also
resulted in higher international prices of base oil. The new unit would
therefore not only meet internal requirements, but would also result in a new
source of revenue for BPCL.
Recent BPCL news:
BPCL
to go ahead with Bina refinery project (1-Sep-04)