Bharat Petroleum Corporation Ltd (BPCL) is in talks with several domestic and international players for equity participation in its proposed coastal refinery in Andhra Pradesh, a senior company official told ET on the sidelines of the India Energy Week.
BPCL is developing a large refinery-cum-petrochemical complex near Ramayyapatnam port in the Nellore district of Andhra Pradesh. The base investment for the project is estimated at around ₹96,000 crore.
BPCL has already signed a memorandum of understanding with Oil India, which is set to acquire a 10 per cent stake in the Andhra refinery. Discussions with other potential partners, including Saudi Aramco, are ongoing, though stake structures and timelines are yet to be finalised, the official added.
The Andhra project, which will have a petrochemical intensity of around 25 per cent, is being prioritised for its coastal location, efficient crude logistics and strong downstream demand. Earlier plans for a refinery in Prayagraj have been deferred, while the proposed Ratnagiri refinery still remains uncertain due to pending land identification.
“Land is the single biggest risk factor. Unless parcels are clearly identified and frozen, projects of this scale cannot move forward,” the executive said.
The comments come as India crossed the milestone of 100,000 fuel retail outlets, highlighting the rapid expansion of energy infrastructure needed to support rising mobility demand in a fast-growing economy.
BPCL said fuel stations are being commissioned almost daily, with expansion carried out in a targeted and data-driven manner to serve new urban clusters and commercial centres. Under the latest round of retail outlet authorisations, more than 25 per cent of advertised locations have progressed to commissioning.
The oil major currently holds an overall market share of about 29.9 per cent in petrol and diesel sales.
On the gas front, BPCL has set up over 700 CNG stations at its fuel retail outlets and is expanding piped natural gas (PNG) coverage, with around 50,000 households charged so far. The company is also working with city gas distribution operators and private retailers, including Reliance, to offer CNG at petrol pumps where it is not the authorised CGD player.
BPCL said demand creation through branded fuels, loyalty programmes and CNG conversion incentives remains central to its growth strategy as India’s energy needs continue to rise.
