Bharat Petroleum Corporation Ltd (BPCL) is exploring the possibility of setting up a greenfield oil refinery and petrochemical complex near Ramayapatnam Port in Andhra Pradesh, as part of its strategy to expand capacity in response to growing energy demand across India.
The state-owned energy major is currently assessing the feasibility of the project, which would mark a significant addition to its refining infrastructure in the country.
India, the world’s third-largest oil-importing and consuming nation, is projected to add 1 million barrels per day of incremental oil demand by 2030 – the highest in the world, said Sanjay Khanna, chairman and managing director of BPCL, at the company’s annual shareholder meeting on Monday.
To put things in perspective, the global oil demand is expected to grow by 2.5 million barrels per day by 2030.
India currently consumes 5.5 million barrels of oil per day.
“Recognising the strong growth potential of India, BPCL is evaluating setting up a greenfield refinery-cum-petrochemical complex near Ramayapatnam Port in Andhra Pradesh. Pre-project activities are underway,” he said.
While he did not give financial details or capacity planned, the company management had previously stated that the 9 million tonnes a year unit is likely to cost around Rs 95,000 crore.
“This strategic investment will further expand BPCL’s petrochemical portfolio, provide a natural hedge against petroleum products in the long run, and align with India’s vision of becoming a global refining and petrochemical hub,” Khanna said.
He said BPCL has taken up ‘Project Aspire’ to meet the future needs by strengthening its core in refining, marketing, and upstream with sharper execution, while boldly advancing into petrochemicals, renewables, green hydrogen, biofuels, and gas.
“It is not just a project, but a philosophy to shape the next fifty years,” he said.
From a single refinery processing 3.8 million tonnes of crude oil into fuels like petrol and diesel per annum, BPCL now has three refineries with a combined capacity of 40.5 million tonnes.
From 3.6 million tonnes of product sales 50 years ago, it delivers over 52.4 million tonnes of petroleum products now.
“Back then, our turnover was Rs 552 crore and profit was Rs 1.7 crore. Today, turnover has crossed Rs 5 lakh crore and profit stands at Rs 13,275 crore,” he said. “From modest beginnings to a leading national energy company – this is not just growth in numbers. This is the story of scale, of discipline and of nation-building.”
Giving details of projects being pursued, he said BPCL’s Mumbai Refinery is being upgraded with the replacement of the existing catalytic cracking unit (CCU) and fluidised catalytic cracking unit (FCCU) with a state-of-the-art Petro Resid Fluidized Catalytic Cracking Unit (PRFCC) and its associated facilities at a cost of Rs 14,200 crore.
“Looking ahead, the refining sector in India is set for a transformative phase, with growth increasingly driven by petrochemical integration. Our two major petrochemical projects at Bina (in Madhya Pradesh) and Kochi (in Kerala), with a combined capital investment of Rs 54,000 crore, are progressing well on schedule, both in execution and financing,” he said.
BPCL, he said, has committed to achieving net zero emissions by 2040. “By 2035, we aspire to build a renewable energy portfolio of 10 GW.”
The firm has a renewable energy portfolio comprising around 155 MW from solar and wind energy projects, alongside high-potential projects under development, including a 71 MW solar plant at Prayagraj and two 50 MW wind farms in Madhya Pradesh and Maharashtra.
“To further scale these efforts, we formed a joint venture company with Sembcorp Green Hydrogen India Private Limited (SGHIPL), a subsidiary of Sembcorp Industries, to jointly pursue large-scale opportunities in renewable energy and green hydrogen projects across India,” he said.
On the green hydrogen front, a 5 MW electrolyser unit was commissioned at Bina Refinery. “BPCL is also exploring innovative applications, from hydrogen-powered buses to Vertical Take-Off and Landing (VTOL) aircraft, reinforcing our vision of sustainable and clean mobility.”
