Cals And BPCL Refnery Plans Refect Growth Expectations

摘要

BMI View: BPCL's plans for major refning capacity expansions are in line with its expectations of rising domestic fuel demand. This confdence is refected in a new Kuwaiti investment in Cals Refneries, a prospective fuels supplier to BPCL. India's state-owned Bharat Petroleum Corporation Ltd (BPCL) is considering increasing its refning capacity by expanding two of its existing plants or setting up a greenfeld refnery. In a separate but related development, a new investment in private Indian company Cals Refneries, with which BPCL has a fuel-offtake agreement, looks set to give a boost to the long-delayed project to reconstruct Germany's Ingolstadt refnery in India. With the Indian government in the process of tentatively liberalising fuel prices, rising domestic demand looks set to feed back into better conditions for refners.