Bharat Petroleum Corporation Ltd (BPCL), a state-owned oil company, has selected Andhra Pradesh for its new refinery and petrochemical complex. This project is expected to be one of India’s last major greenfield refinery developments, with a focus on transitioning to net-zero emissions.
BPCL announced in a stock exchange filing that its board had approved the commencement of pre-project activities for the facility, which will be located on the east coast of India. The project is estimated to cost around Rs 6,100 crore. Initial activities include land acquisition, feasibility studies, environmental assessments, and the preparation of engineering designs.
While BPCL has not disclosed the exact capacity or completion timeline, the refinery is expected to have a capacity of at least 9 million tonnes per year, equivalent to 180,000 barrels per day. Currently, BPCL ranks as India’s third-largest oil refiner, following Indian Oil Corporation and Reliance Industries. BPCL operates refineries in Mumbai, Kochi, and Bina. However, it lost control of the Numaligarh refinery in Assam when the government’s privatization plan was abandoned.
The new refinery in Andhra Pradesh is anticipated to be India’s final greenfield refinery project. BPCL is also part of a consortium planning a 60 million tonnes per year refinery in Maharashtra, although land acquisition challenges have delayed the project.
India, the world’s third-largest oil consumer, is expanding its refining capacity, with plans to reach 300 million tonnes by the end of this decade. Despite the rise of electric vehicles, the country’s oil demand continues to grow at 4-5% annually.
India’s refineries produced 276.1 million tonnes of fuel in 2023-24, with domestic consumption at 234.3 million tonnes. The new facilities, along with expansions at existing refineries, are expected to meet India’s fuel needs until at least 2040.
In parallel, India is pushing forward with clean energy projects like green hydrogen, electric vehicles, and CNG/LNG, as part of its goal to achieve net-zero carbon emissions by 2070. BPCL has allocated Rs 1.7 lakh crore for expanding its refining business and investing in renewable energy. The company plans to contribute 7-10% of India’s primary energy demand by 2047 and achieve net-zero emissions by 2040. It is targeting 2 GW of renewable energy capacity by 2025 and 10 GW by 2035, alongside investments in wind and solar projects.
Bharat Petroleum Corporation Limited (BPCL) is one of India’s leading oil and gas companies, known for its diverse range of energy solutions. A wholly owned subsidiary of the Indian government, BPCL operates across refining, marketing, and distribution of petroleum products.
With a robust infrastructure that includes refineries, pipelines, and an extensive retail network of fuel stations across India, BPCL serves millions of customers every day. The company is also heavily invested in renewable energy, with a focus on green initiatives, including biofuels and solar energy, as part of its commitment to sustainable development. BPCL continues to innovate and evolve, ensuring energy security while contributing to India’s growth and development in the energy sector.
