State-owned Bharat Petroleum Corporation Ltd (BPCL) has announced plans to establish a new oil refinery-cum-petrochemical complex in Andhra Pradesh, marking what could be India’s last greenfield refinery project. The move is part of BPCL’s broader strategy to strengthen its refining capacity while pursuing ambitious energy transition goals toward net-zero emissions.
In a filing with the stock exchange, BPCL said, “We wish to inform you that the Board at its meeting held on Tuesday, 24th December, 2024, has accorded its approval to commence pre project activities for setting up of a green field Refinery cum Petrochemical complex in East Coast at Andhra Pradesh at an estimated cost of Rs 6100 crore. The pre project activities consists of various initial studies, land identification and acquisition, preparation of Detailed Feasibility report, Environment Impact Assessment, Basic Design Engineering package, Front End Engineering Design etc.”
While BPCL has not disclosed the project’s specific capacity or timeline, analysts anticipate that the refinery could process up to 9 million tonnes of crude annually (around 180,000 barrels per day).
BPCL, India’s third-largest oil refiner, currently operates three refineries: Mumbai (12 million tonnes per year), Kochi (15.5 million tonnes), and Bina (7.8 million tonnes). The company had previously planned to privatize its Numaligarh refinery in Assam, but the deal was scrapped after a lack of interest from bidders. The refinery was transferred to Oil India Ltd to comply with the Assam Accord and remain in the public sector.
The Andhra Pradesh facility is seen as India’s final greenfield refinery project, as the country’s oil refining sector faces increasing challenges, including land acquisition hurdles. BPCL is also part of a consortium pursuing a 60 million tonnes per year refinery and petrochemical complex on India’s west coast in Maharashtra, though that project has been stalled for several years.
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