Energy expansion: BPCL plans Rs 95,000 crore refinery-petrochemical unit in Andhra, eyes global refining hub role
Bharat Petroleum Corporation Ltd (BPCL) is exploring a greenfield oil refinery and petrochemical complex near Ramayapatnam Port in Andhra Pradesh as part of its long-term capacity expansion strategy to meet rising energy demand in India.At the company’s annual shareholder meeting on Monday, chairman and managing director Sanjay Khanna said BPCL has begun pre-project activities for the proposed refinery-cum-petrochemical unit, PTI reported.India, the world’s third-largest oil-importing and consuming nation, is expected to add 1 million barrels per day of incremental oil demand by 2030, the highest globally. In comparison, global oil demand is projected to rise by 2.5 million barrels per day in the same period.“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,” Khanna said.Strategic investment aheadWhile financial details and capacity were not disclosed, the management had earlier indicated that the proposed 9 million tonnes per annum unit may 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 added.Project Aspire and diversificationKhanna said BPCL is pursuing ‘Project Aspire’ to strengthen refining, marketing, and upstream operations while pushing aggressively into petrochemicals, renewables, green hydrogen, biofuels, and natural 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 annually, BPCL now operates three refineries with a combined capacity of 40.5 million tonnes. Product sales have risen from 3.6 million tonnes fifty years ago to 52.4 million tonnes at present.“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,” Khanna noted. “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.”Ongoing refinery upgradesAmong key projects underway, BPCL’s Mumbai Refinery is being upgraded with a Petro Resid Fluidized Catalytic Cracking Unit (PRFCC) and associated facilities at a cost of Rs 14,200 crore.Meanwhile, two major petrochemical projects at Bina in Madhya Pradesh and Kochi in Kerala, involving a combined investment of Rs 54,000 crore, are progressing well on schedule.Renewables and green hydrogenBPCL has committed to achieve net zero emissions by 2040 and aims to build a renewable energy portfolio of 10 GW by 2035. Currently, its renewable assets comprise about 155 MW from solar and wind projects, including a 71 MW solar plant at Prayagraj and two 50 MW wind farms in Madhya Pradesh and Maharashtra.To accelerate clean energy transition, BPCL has formed a joint venture with Sembcorp Green Hydrogen India Pvt Ltd, a subsidiary of Sembcorp Industries, for large-scale renewable and hydrogen projects.On the hydrogen front, a 5 MW electrolyser has been commissioned at the 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,” Khanna said.
