State-owned Bharat Petroleum Corporation Ltd (BPCL) is considering the development of a new oil refining and petrochemical complex within the next 5-7 years to meet India’s increasing energy needs, according to Chairman G. Krishnakumar. Speaking to shareholders on Friday, he outlined the company’s plans to invest Rs 1.7 lakh crore to expand its refining capacity, fuel retailing, and new energy ventures.
Following the loss of its Numaligarh refinery in Assam to Oil India Ltd during a failed privatization attempt, BPCL now operates three refineries in Mumbai, Bina, and Kochi. Krishnakumar emphasized that to address future demand beyond the expansions at Bina and Kochi, it is evaluating options for additional integrated refining and petrochemical capacities.
India’s consumption of refined fuels and petrochemicals is projected to grow by 4-5% and 7-8%, respectively, in the near future, presenting BPCL with a strategic opportunity to scale up its refining operations alongside the development of petrochemical complexes.
BPCL aims to meet 7-10% of India’s primary energy demand by 2047. As part of its five-year strategic plan, the company will focus on both its core businesses—refining, petroleum product marketing, and upstream activities—and new areas such as petrochemicals, gas, green energy, non-fuel retail, and digital technologies. The planned capital expenditure of Rs 1.7 lakh crore over five years is expected to generate long-term value while addressing environmental sustainability.
With a strong financial position, including a zero net-debt level, BPCL is poised to make significant investments without jeopardizing its financial health. In line with its petrochemical ambitions, BPCL announced two major projects in Bina and Kochi during the 2023-24 fiscal year, with a combined capital outlay of Rs 54,000 crore.
BPCL is also committed to achieving net-zero carbon emissions by 2040, which will require an estimated Rs 1 lakh crore investment in renewable energy, green hydrogen, compressed biogas, carbon capture and storage, and energy efficiency initiatives.
The company has set ambitious targets to build 2 GW of renewable energy capacity by 2025 and 10 GW by 2035. This includes nearly Rs 1,000 crore investment in wind power plants in Maharashtra and Madhya Pradesh, and Rs 300 crore in a solar project in Prayagraj, Uttar Pradesh. BPCL is also advancing green hydrogen projects, such as a 5 MW electrolyser plant at Bina Refinery and a Green Hydrogen refuelling station in Kochi.
After a year of record earnings, BPCL faces a more challenging operating environment, with refining margins under pressure. Despite these challenges, Krishnakumar expressed confidence in BPCL’s ability to navigate the industry’s hurdles and strengthen its position.
BPCL is also advancing its support for electric mobility by expanding its EV charging infrastructure. The company has installed over 3,100 charging stations and plans to increase this to 7,000 stations soon. Additionally, BPCL has introduced the Highway Fast Charging Corridors concept, expanding its EV fast charging network to around 900 stations across 120 key corridors, and aims to install fast chargers at approximately 6,000 retail outlets on major highways over the next five years.
