Bharat Petroleum Corporation Limited (BPCL) has announced plans to invest $11 billion in a refinery and petrochemical complex in Andhra Pradesh to meet the growing fuel demand in India, the world's fastest-growing major economy. BPCL Chairman G. Krishnakumar shared the news in a recent interview, highlighting the company's vision to capitalize on opportunities in the refining sector.
India aims to position itself as a global refining hub, supplying fuel to international markets as Western companies reduce crude processing capacities in line with energy transition goals. "India's primary energy demand is expected to increase three to four times as its economy expands," said Krishnakumar, noting the country's ambitious goal of becoming a developed nation by 2047 with a projected GDP of $30 trillion.
The proposed refinery in Andhra Pradesh will have a capacity of at least 9 million metric tons per year (tpy) and include an ethylene cracker. With a 35% petrochemical intensity, the project is estimated to cost between ₹90,000 crore and ₹95,000 crore ($10.56 billion&ndash;$11.14 billion). Pre-project activities, including land acquisition, are already underway.
BPCL operates three refineries in India with a combined capacity of 35.3 million tpy and sources an additional 3 million tpy from the Numaligarh refinery in the northeast. The Andhra Pradesh complex is expected to primarily serve southern India, a hub for petrochemical developers and automobile manufacturers.
The project aligns with the broader trend among Indian refiners to increase petrochemical production, as the country's per capita consumption is set to rise alongside industrial growth. Additionally, BPCL is exploring a joint venture with Oil and Natural Gas Corporation (ONGC) to establish a refinery in Uttar Pradesh, while also advancing clean energy initiatives.
BPCL has committed to achieving 10 gigawatts (GW) of clean energy capacity by 2035. To this end, it plans to aggressively bid for renewable energy projects tendered by the government and explore acquisitions to expand its portfolio, which currently includes 300 megawatts of renewable energy. A joint venture with Sembcorp has been announced to further boost its renewable energy capabilities.
The company is also optimistic about its $20 billion Mozambique liquefied natural gas (LNG) project, led by TotalEnergies. Operations are expected to commence in the first quarter of 2025, with gas monetization projected by 2028&ndash;29. BPCL, along with other Indian firms, holds a 30% stake in the Mozambique project.
With this significant investment, BPCL is set to strengthen its position in both traditional refining and emerging renewable energy sectors, aligning with India's energy transition and economic growth objectives.  
&nbsp;
Source : Business-Standard

Bharat Petroleum Corporation Limited (BPCL) has announced plans to invest $11 billion in a refinery and petrochemical complex in Andhra Pradesh to meet the growing fuel demand in India, the world's fastest-growing major economy

Bharat Petroleum to Invest $11 Billion in Andhra Pradesh for New Refinery and Petrochemical Project