Bharat Petroleum Corporation Limited (BPCL) is set to invest $11 billion in Andhra Pradesh for a new refinery and petrochemical complex, aiming to meet the growing fuel demand in India’s rapidly expanding economy, according to Chairman G. Krishnakumar.
India, aspiring to be a global refining hub, plans to supply fuel to international markets as Western nations reduce refining capacity amidst energy transitions. “The refining sector presents a significant opportunity. India’s primary energy demand is projected to grow three to four times with economic expansion,” Krishnakumar said in an interview.
As part of its vision to become a developed nation by 2047, India aims to boost its GDP from $3.8 trillion to $30 trillion.
Project details
BPCL has initiated pre-project activities, including land acquisition, for a refinery and ethylene cracker in Andhra Pradesh. The facility will have a capacity of at least 9 million metric tonnes per year (tpy) and a petrochemical intensity of 35%, with an estimated cost between ₹90,000 crore and ₹95,000 crore ($10.56 billion–$11.14 billion).
Currently, BPCL operates three refineries in India with a combined capacity of 35.3 million tpy and sources fuel from a 3 million tpy refinery in Numaligarh. About 80% of the output from the proposed Andhra Pradesh complex will cater to southern India, home to petrochemical developers and automobile manufacturers.
Expansion and renewable energy initiatives
BPCL is exploring another refinery project in northern Uttar Pradesh through a joint venture with Oil and Natural Gas Corporation (ONGC). Increasing refining capacity will reduce BPCL’s reliance on purchasing refined fuels, which currently accounts for one-fifth of the 50 million tpy sold through its retail network.
In line with clean energy goals, BPCL is aggressively bidding for government renewable energy projects and is open to acquisitions to achieve its 10-gigawatt clean energy target by 2035. The company has partnered with Sembcorp to expand its 300-megawatt renewable energy portfolio.
Mozambique LNG project update
Krishnakumar expressed optimism about the $20 billion Mozambique liquefied natural gas (LNG) project, led by TotalEnergies. BPCL and other Indian firms hold a 30% stake in the project, with operations expected to commence in early 2025 and gas monetisation by 2028–29.
BPCL’s initiatives reflect its strategy to balance traditional refining expansion with clean energy development to meet India’s evolving energy demands.
