9JUNE 2024BPCL TO ESTABLISH REFINERY FACILITY CATERING TO RISING DEMANDINDIA'S ENERGY CONSUMPTION SOON TO SURPASS USAState-run Bharat Petroleum Corporation (BPCL) plans to establish a new 12 million metric tonnes per annum (MMTPA) refinery in India, as reported by two industry officials. This project will involve an investment of approximately Rs 50,000 crore. BPCL is currently evaluating potential locations in three states: Andhra Pradesh, Uttar Pradesh, and Gujarat."BPCL is planning another refinery either on the east coast or on the west coast as India needs more refineries to meet the increasing fuel demand," one official noted, adding that talks are still at a preliminary stage. The company may also consider Uttar Pradesh as a potential location.BPCL's chairman, G Krishnakumar, recently mentioned the company's intention to expand its refining capacity to 45 MMTPA by FY29. Currently, BPCL operates three refineries in Mumbai, Kochi, and Bina (in Madhya Pradesh), with a coThe push for a new refinery arises partly because a proposed plan to establish a 60-MMTPA integrated refinery and petrochemicals complex on the west coast of Maharashtra did not materialize. The government initially proposed this project in 2015, intending to build Asia's largest refinery in Ratnagiri, Maharashtra, at an estimated cost of Rs 3 lakh crore to cater to the country's growing demand for fuel and petrochemicals. India's energy consumption is poised to nearly double by 2050, reflecting one of the fastest growth rates globally, according to Igor Sechin, CEO of Rosneft, a leading Russian oil producer. Speaking at the 27th St. Petersburg International Economic Forum (SPIEF), Sechin highlighted India's burgeoning economy and its significant implications for global energy demand. He predicted that the Indian economy, with its robust growth trajectory, would surpass that of the US by 2050.The statement further noted Sechin's prediction that India's end-use energy consumption will grow by 90 percent by 2050, underscoring the country's rapid expansion in energy needs. He emphasized that developing countries will be the primary drivers of oil consumption in the coming decades. By 2030, these nations are expected to account for 95 percent of global demand growth, with the highest increases projected in Asian countries, which are key trading partners for Russia.Addressing the topic of energy transition, Sechin acknowledged the potential of hydrogen as a clean fuel but pointed out existing challenges related to production technology, logistics, and market readiness. His comments reflected a cautious stance towards the immediate feasibility of a complete shift to hydrogen and other green energy sources, emphasizing the continuing relevance of fossil fuels in meeting the world's growing energy demands.
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