Hindustan Petroleum to Invest $220 Million in Refined Product Terminals

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Researched by Industrial Info Resources (Sugar Land, Texas)--In a bid to modernize its existing terminal infrastructure, India's state-run oil and gas company Hindustan Petroleum Corporation Limited (BSE:500104) (Mumbai) has proposed to invest $220 million by 2013.

The corporation has already kicked off construction of five major oil installations at Ennore, Visakh, Bokaro, Bihta and Tikrikalan.

HPCL is setting up a greenfield oil terminal at Ennore, which is in the northern outskirts of Chennai City and Tikrikalan in Delhi. Both projects are expected to be commissioned in August 2011. The total investment for these two projects has been pegged at about $67 million.

The projects involve the setting up of facilities, including an automated tank truck loading facility, a tank wagon loading/receiving facility, and tanks for products such as diesel, superior kerosene oil, jet fuel and motor spirit.

Although the Tikrikalan project faced an initial hiccup in the land acquisition process, the project has picked up pace and is expected to meet its latest deadlines.

HPCL has plans to invest in the liquefied petroleum gas (LPG) sector to widen its customer base.

HPCL has firmed up an ambitious expansion plan to diversify in the areas of increasing energy demand, technological upgrades and environmental management in order to strengthen core processes and modernize its existing infrastructure. HPCL has proposed total capital expenditure (including equity investments in joint ventures) of $2.55 billion during the 11th Five-Year Plan (2007-12).

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