BPCL Mulls Rs 950-Billion Refinery in Andhra Pradesh
POWER & RENEWABLE ENERGY

BPCL Mulls Rs 950-Billion Refinery in Andhra Pradesh

Bharat Petroleum Corporation Ltd (BPCL) is evaluating the establishment of a greenfield oil refinery and petrochemical complex near Ramayapatnam Port in Andhra Pradesh, aiming to expand capacity in line with India’s rising energy needs. The state-owned company is currently conducting feasibility studies for the project, which would significantly augment its refining infrastructure.
India, the world’s third-largest oil consumer, is expected to add 1 million barrels per day of oil demand by 2030—more than any other country—according to Sanjay Khanna, BPCL’s Chairman and Managing Director. This figure compares to a global increase of 2.5 million barrels per day. India’s current consumption stands at 5.5 million barrels per day.
Khanna announced during BPCL’s annual shareholder meeting that “pre-project activities are underway” for the proposed facility. While no specific financial or capacity details were revealed, previous management estimates suggest a 9-million-tonne-per-annum unit could cost around Rs 950 billion.
He noted, “This strategic investment will expand BPCL’s petrochemical portfolio, provide a hedge against petroleum product volatility, and align with India’s ambition of becoming a global refining and petrochemical hub.”
The project is part of BPCL’s broader vision titled ‘Project Aspire’, which focuses on fortifying core areas like refining and marketing, while also advancing into petrochemicals, renewables, green hydrogen, biofuels, and gas.
From humble origins—just 3.8 million tonnes of annual refining capacity and Rs 552 crore in turnover 50 years ago—BPCL now operates three refineries with a combined capacity of 40.5 million tonnes, product sales of 52.4 million tonnes, and revenue exceeding Rs 5 trillion, with net profit at Rs 13.28 billion.
In addition to the Andhra project, Khanna outlined upgrades at Mumbai Refinery, including a Rs 142 billion Petro Resid Fluidized Catalytic Cracking Unit (PRFCC), replacing older units to enhance efficiency and output. Two other major petrochemical projects, at Bina in Madhya Pradesh and Kochi in Kerala, are progressing on schedule with a combined investment of Rs 540 billion.
BPCL has pledged to achieve net zero emissions by 2040 and is working towards a 10 GW renewable energy portfolio by 2035. Currently, it operates 155 MW from solar and wind sources, with major projects under development, such as a 71 MW solar plant in Prayagraj and two 50 MW wind farms in Madhya Pradesh and Maharashtra.
To accelerate its clean energy efforts, BPCL has formed a joint venture with Sembcorp Green Hydrogen India Pvt Ltd (SGHIPL) to explore large-scale opportunities in renewable energy and green hydrogen. A 5 MW electrolyser is already operational at the Bina Refinery, and the firm is exploring advanced hydrogen applications, including hydrogen-powered buses and VTOL aircraft, reinforcing its long-term vision of clean and sustainable mobility. 

Bharat Petroleum Corporation Ltd (BPCL) is evaluating the establishment of a greenfield oil refinery and petrochemical complex near Ramayapatnam Port in Andhra Pradesh, aiming to expand capacity in line with India’s rising energy needs. The state-owned company is currently conducting feasibility studies for the project, which would significantly augment its refining infrastructure.India, the world’s third-largest oil consumer, is expected to add 1 million barrels per day of oil demand by 2030—more than any other country—according to Sanjay Khanna, BPCL’s Chairman and Managing Director. This figure compares to a global increase of 2.5 million barrels per day. India’s current consumption stands at 5.5 million barrels per day.Khanna announced during BPCL’s annual shareholder meeting that “pre-project activities are underway” for the proposed facility. While no specific financial or capacity details were revealed, previous management estimates suggest a 9-million-tonne-per-annum unit could cost around Rs 950 billion.He noted, “This strategic investment will expand BPCL’s petrochemical portfolio, provide a hedge against petroleum product volatility, and align with India’s ambition of becoming a global refining and petrochemical hub.”The project is part of BPCL’s broader vision titled ‘Project Aspire’, which focuses on fortifying core areas like refining and marketing, while also advancing into petrochemicals, renewables, green hydrogen, biofuels, and gas.From humble origins—just 3.8 million tonnes of annual refining capacity and Rs 552 crore in turnover 50 years ago—BPCL now operates three refineries with a combined capacity of 40.5 million tonnes, product sales of 52.4 million tonnes, and revenue exceeding Rs 5 trillion, with net profit at Rs 13.28 billion.In addition to the Andhra project, Khanna outlined upgrades at Mumbai Refinery, including a Rs 142 billion Petro Resid Fluidized Catalytic Cracking Unit (PRFCC), replacing older units to enhance efficiency and output. Two other major petrochemical projects, at Bina in Madhya Pradesh and Kochi in Kerala, are progressing on schedule with a combined investment of Rs 540 billion.BPCL has pledged to achieve net zero emissions by 2040 and is working towards a 10 GW renewable energy portfolio by 2035. Currently, it operates 155 MW from solar and wind sources, with major projects under development, such as a 71 MW solar plant in Prayagraj and two 50 MW wind farms in Madhya Pradesh and Maharashtra.To accelerate its clean energy efforts, BPCL has formed a joint venture with Sembcorp Green Hydrogen India Pvt Ltd (SGHIPL) to explore large-scale opportunities in renewable energy and green hydrogen. A 5 MW electrolyser is already operational at the Bina Refinery, and the firm is exploring advanced hydrogen applications, including hydrogen-powered buses and VTOL aircraft, reinforcing its long-term vision of clean and sustainable mobility. 

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