BPCL bullish on expanding LNG biz; to ink 5-yr deal with ADNOC

State-run Bharat Petroleum Company (BPCL) is bullish on doubling its gasoline enterprise within the subsequent 5 years as India will increase focus on liquefied pure gasoline (LNG) to transition in the direction of a inexperienced vitality ecosystem.

In view of the rising demand for pure gasoline, notably in metropolis gasoline distribution (CGD), the oil advertising firm (OMC) will signal a 5-year LNG provide deal with Abu Dhabi Nationwide Oil Firm (ADNOC), for round “0.45 million tonnes each year” on the sidelines of the continuing India Power Week (IEW) 2025.

“Our gasoline enterprise is round 4 per cent and we wish to take it to not less than 8-9 per cent. Accordingly, we now have began investing enormous sum of money in CGD enterprise. We’re going to make investments round ₹25,000 crore in subsequent 5 years on gasoline enterprise, not just for CNG, even for LNG,” BPCL Director (Finance) VRK Gupta informed businessline.

BPCL can be bullish on the potential for LNG vans, which has the potential to exchange diesel for heavy obligation lengthy haul trucking, he added.

Responding to a question on the CGD enterprise throughout BPCL’s Q3FY25 investor name, Gupta mentioned, “We’re exploring sure long-term contracts… No matter shortfall of APM gasoline, we now have to meet by the open market. So we’re exploring some long-term offers, both Henry Hub-based or another index-based cargo share planning.”

BPCL has already arrange 2 RLNG (regasified LNG) stations and has plans to arrange 10 extra alongside strategic highways, which is able to price round ₹150-200 crore, he had mentioned then.

Rationale

On rising focus on pure gasoline, Gupta defined that the world vitality consumption, on a median, is rising round 1.2-1.3 per cent, whereas India is probably going to develop at 4-4.5 per cent.

India is consuming round 5.4-5.5 million barrels per day (mb/d), which is anticipated to develop to 8.5 mb/d by 2040, Gupta mentioned, including, “We don’t have this a lot vitality in India. What are the alternate options? One is renewables and EVs, which takes time. Second is inexperienced hydrogen, which at the moment is the most expensive. Third choice is LNG. So everyone seems to be attempting to focus on LNG, and BPCL can be focusing on LNG, which has lesser CO₂ emissions.”