Venture revives plans for Indian refinery

Oct. 17, 2005
A letter of intent by BP PLC and India's Hindustan Petroleum Corp. Ltd. (HPCL) to form a strategic refining partnership has revived longstanding plans for a 180,000 b/d refinery at Bhatinda in Punjab, India.

By OGJ editors
HOUSTON, Oct. 14 -- A letter of intent by BP PLC and India's Hindustan Petroleum Corp. Ltd. (HPCL) to form a strategic refining partnership has revived longstanding plans for a 180,000 b/d refinery at Bhatinda in Punjab, India.

The $3 billion refinery is expected to be commissioned in 2009.

BP and HPCL have agreed to jointly study refining and marketing opportunities in India.

The JV will develop a marketing activity, which includes establishing a retail service station network, to handle products of the planned refinery. It will provide assistance in crude selection and supply for HPCL's other refineries.

Earlier plans for the Bhatinda refinery stalled in 2000 when HPCL's international partners—Exxon Corp., Total SA, and Saudi Aramco—withdrew from the project (OGJ, Feb. 19, 2001, p. 50).