Bharat Petroleum Corporation Limited (BPCL) has unveiled plans to invest $11 billion (approximately INR 950 billion) in a new refinery and petrochemical complex in Andhra Pradesh. The project is part of BPCL's strategy to address rising fuel demand in India and position itself as a key player in the global refining market.
The proposed facility will have a refining capacity of 9 million metric tonnes per year (tpy) and include an ethylene cracker with a petrochemical intensity of 35%. BPCL has already initiated pre-project work, including land acquisition, and aims to cater to the growing energy needs of southern India, a hub for petrochemical developers and automobile manufacturers. The refinery is expected to supply 80% of its output locally, contributing to India's aspiration of becoming a global refining hub.
G. Krishnakumar, Chairman of BPCL, stated “India’s primary energy demand is projected to increase three to four times as the economy expands. This project reflects a significant opportunity in the refining sector as we look to meet domestic and global demands while supporting India’s energy ambitions.”
India, aiming to be a developed nation by 2047, plans to expand its GDP from $3.8 trillion to $30 trillion. The refining sector is a crucial part of this vision, with Indian refiners increasing their focus on petrochemical production to support rising per capita consumption driven by manufacturing growth. BPCL, which currently operates three refineries with a combined capacity of 35.3 million tpy, is also exploring the possibility of establishing a refinery in Uttar Pradesh in collaboration with Oil and Natural Gas Corporation (ONGC).
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