BPCL will build the refinery in partnership with Oman Oil Company Ltd and expects to complete the unit in Bina in the central Indian state of Madhya Pradesh by 2009, said J B S Hazooria, managing director of Bharat Oman Refineries Ltd.

The refinery project, conceived nearly a decade ago, had been delayed by environmental issues and concerns over its viability.
"We are happy that the project is finally taking off. We will complete the project in four years," Hazooria says.
State-run BPCL signed a memorandum of understanding with the Madhya Pradesh government, and Hazooria said BPCL would go ahead with the project even if Oman Oil withdrew from it.
The refinery was initially planned with Oman Oil owning 26 per cent in Bharat Oman Oil Refineries Ltd and BPCL the rest.
Oman Oil has invested 755 million rupees in the project.
"We are talking to Oman Oil. If they want, they could still be part of the project," Hazooria said.
Oman Oil had told BPCL it would not invest further in the Bina refinery, but would retain an equity interest equal to the ratio of their investment to the total equity of the project. The company also plans to offer a minority stake to the Madhya Pradesh government in lieu of the value of land the state allotted for the refinery, Hazooria said.
Project planners had initially envisaged a facility for receiving crude oil imports at Vadinar on the west coast of India and a 943-km-long pipeline to Bina.
Shell's new LNG gas terminal at Hazira in India's western Gujarat state received its second cargo of 150,000 cu m from Oman.
"The entire cargo was sold to Gujarat State Petroleum Corp," said Shell India's spokesperson. The cargo is provided by Shell's partner Total, which has a 26 per cent stake in the Hazira terminal.
Total also has a 5.54 per cent stake in the Oman LNG project. But it was unclear when the Hazira terminal would get its third cargo. The first, commissioning cargo was sourced by Shell from Australia's North West Shelf LNG project and arrived in India in April. The gap of nearly two months between the first and second cargo suggests that the Hazira terminal is operating way below its 2.5 million tonnes per year (9.5 million cu m per day) capacity, probably due to the difficulty of finding more Indian customers able to afford pricey LNG imports.
GSPC, which bought both the cargoes for its own use and for resale within Gujarat, is Shell's sole LNG customer.
The Shell official declined to detail the price GSPC paid for the cargo, but Indian media reports earlier said GSPC is getting around 0.7 million cu m per day from the Hazira terminal under a 210-day contract at $3.66/MMBtu. \India's Bharat Petroleum Corp Ltd has received government clearance to build a long-delayed, 6-million-tonne-per-year refinery in central India at a cost of 750-billion rupees ($1.7 billion), the company said.