Petroleum: Indian company eyes Pakistan as trade eases
May build 100km pipeline linking Bhatinda to Lahore.
MUMBAI:
Pakistan’s move to ease trade restrictions against India may translate into a big opportunity for Hindustan Petroleum Corporation Limited (HPCL), Hindu Business Line has reported. HPCL’s Bhatinda refinery, scheduled to be commissioned soon, will benefit from an enlarged market resulting from the opening up of the Indo-Pak border.
The project, planned with an outlay of Indian Rs190 billion, will benefit from Pakistan’s easing trade restrictions on Indian goods. If the HPCL is willing to invest in a 100 kilometre pipeline linking Bhatinda to Lahore, Pakistan may turn out to be a bonus market for the planned project, Hindu Business Line said.
No plans have been finalised yet, but the oil company has made it known recently that it may be open to supplying products to Pakistan from its new refinery. According to reports, the business model will be very attractive to HPCL, as revenues will outstrip the relatively low investment sunk into the pipeline.
The HPCL is primed to use Bhatinda as a critical gateway to the Pakistani market ever since Pakistan has expressed its keenness in facilitating trade with India. Reports say that any increase in capacity or the expansion of the refinery’s units will not be expensive, and the company can easily expand into the Pakistani market.
Published in The Express Tribune, March 7th, 2012.
Pakistan’s move to ease trade restrictions against India may translate into a big opportunity for Hindustan Petroleum Corporation Limited (HPCL), Hindu Business Line has reported. HPCL’s Bhatinda refinery, scheduled to be commissioned soon, will benefit from an enlarged market resulting from the opening up of the Indo-Pak border.
The project, planned with an outlay of Indian Rs190 billion, will benefit from Pakistan’s easing trade restrictions on Indian goods. If the HPCL is willing to invest in a 100 kilometre pipeline linking Bhatinda to Lahore, Pakistan may turn out to be a bonus market for the planned project, Hindu Business Line said.
No plans have been finalised yet, but the oil company has made it known recently that it may be open to supplying products to Pakistan from its new refinery. According to reports, the business model will be very attractive to HPCL, as revenues will outstrip the relatively low investment sunk into the pipeline.
The HPCL is primed to use Bhatinda as a critical gateway to the Pakistani market ever since Pakistan has expressed its keenness in facilitating trade with India. Reports say that any increase in capacity or the expansion of the refinery’s units will not be expensive, and the company can easily expand into the Pakistani market.
Published in The Express Tribune, March 7th, 2012.