BPCL Signs Deals Worth ₹1 Trillion for Andhra Refinery Project

On Tuesday at an industry event, Bharat Petroleum Corp announced three partnerships, including an agreement with Oil India to construct a greenfield refinery and petrochemical project in Andhra Pradesh at a cost of 1 trillion rupees ($11.38 billion).

BPCL is also looking to develop a cross-country pipeline with Oil India and Numaligarh Refinery for 35 billion rupees. BPCL has also signed an agreement with Fertilisers & Chemicals Travancore to market organic fertilisers from its biogas facility in Kochi.

According to Chairman Sanjay Khanna, Oil India is considering a 10% to 20% equity stake in the southern India refinery, and BPCL is on the lookout for new partners for the refinery project.

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The proposed refinery has the capacity to process 9 million tonnes to 12 million tonnes of crude annually, and has received most statutory approvals as well as 6,000 acres of land from the Andhra Pradesh government, and has initiated primary project activities, BPCL stated.

The new petrochemical complex in Ramayapatnam will include a 1.5-million-tonne ethylene cracker plant, and is aimed to be commercially operational in fiscal 2030. After increasing NRL's capacity to 9 million tonnes per year, BPCL, Oil India and NRL will jointly build a 700 km pipeline (reach Siliguri to Mughal Sarai via Muzaffarpur). The pipeline will transport petrol, diesel and aviation fuel. BPCL will have 50 % and Oil India and NRL will have 25 % each.

BPCL is concluding an agreement with Fertilisers & Chemicals Travancore to sell and trade organic manure to be produced through its forthcoming biogas facility in Brahmapuram, Rajashan's historic state. The biogas facility will process municipal solid waste into compressed biogas and organic fertilisers. BPCL is the 2nd largest state refiner in India with 706,000 barrels of crude capacity per day, across 3 refineries.