BPCL to Invest Up to ₹95,000 Cr in Andhra Pradesh Refinery

BPCL plans to invest up to Rs 95,000 crore in a new refinery and petrochemical complex near Ramayapatnam Port in Andhra Pradesh, aiming to meet India's growing energy demand. The proposed facility will have a refining capacity of 9 million tonnes of crude oil and a petchem complex, aligning with India's vision of becoming a global refining and petrochemical hub. The investment is part of BPCL's 'Project Aspire' to strengthen its core in refining, marketing, and upstream while advancing into new areas such as renewables, green hydrogen, and biofuels.

Bharat Petroleum Corporation Ltd (BPCL) is considering a significant investment of up to Rs 95,000 crore in a new greenfield oil refinery and petrochemical complex near Ramayapatnam Port in Andhra Pradesh. This strategic move aims to meet India's growing energy demand and align with the country's vision of becoming a global refining and petrochemical hub. The proposed facility will have a refining capacity of 9 million tonnes of crude oil per year.

The project is part of BPCL's 'Project Aspire,' which seeks to strengthen its core operations in refining, marketing, and upstream while venturing into new areas such as renewables, green hydrogen, and biofuels. BPCL has already begun pre-project activities and is evaluating the feasibility of the project, which would mark a significant addition to its refining infrastructure in India.

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. This demand growth underscores the need for BPCL to expand its refining capacity. The global oil demand is expected to grow by 2.5 million barrels per day by 2030, highlighting the increasing importance of petrochemical integration in the refining sector.

BPCL's chairman and managing director, Sanjay Khanna, stated that the proposed refinery-cum-petrochemical complex will further expand the company's petrochemical portfolio and provide a natural hedge against petroleum products in the long run. He emphasized that the investment will align with India's vision of becoming a global refining and petrochemical hub.

In addition to the new refinery, BPCL is also pursuing two major petrochemical projects at Bina (Madhya Pradesh) and Kochi (Kerala) with a combined capital investment of Rs 54,000 crore. These projects are progressing well on schedule, both in execution and financing.

BPCL has committed to achieving net zero emissions by 2040 and aims to build a renewable energy portfolio of 10 GW by 2035. The company currently has a renewable energy portfolio comprising around 155 MW from solar and wind energy projects, with additional high-potential projects under development.

References:
[1] https://m.economictimes.com/industry/energy/oil-gas/bpcl-eyes-new-refinery-cum-petrochemical-complex-in-andhra/articleshow/123503655.cms
[2] https://www.business-standard.com/companies/news/bpcl-eyes-new-refinery-cum-petrochemical-complex-in-andhra-pradesh-125082500938_1.html
[3] https://timesofindia.indiatimes.com/business/india-business/energy-expansion-bpcl-plans-rs-95000-crore-refinery-petrochemical-unit-in-andhra-eyes-global-refining-hub-role/articleshow/123504404.cms