Indian state-company plans $10b oil refinery to meet surging local demand

India’s state-run Bharat Petroleum Corporation Ltd (BPCL) is planning to set up a $10.03 billion oil refinery to meet surging local demand while climate change concerns shrink Western capacity -- and also reduce global demand.

The proposed greenfield plant would be set up near Ramayapatnam Port in Andhra Pradesh and produce petroleum products and their derivatives, including petrochemicals, according to an article published on Polymer Update.

BPCL is planning a refining capacity of nine million metric tonnes per annum (MMPTA).

If materialised, this project would represent a strategic investment to expand the company’s petrochemical portfolio and align with India’s goal of becoming a global refining and petrochemical hub. The initial phase involves land acquisition and preliminary studies.

The company currently has a total refining capacity of 35.3 MMTPA, with plans to expand it to 45 MMTPA by 2028. BPCL’s present refining capacity is spread across its refineries in Mumbai, Kochi, and Bina. The company is presently assessing the feasibility of the project, including possible land acquisition and infrastructure development.

Speaking to shareholders, Sanjay Khanna, chairman and managing director of BPCL, recently said, “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.

 India’s current crude oil demand is estimated at 5.5 million barrels per day, and the country is expected to account for a significant share of the projected 2.5 million bpd increase in global oil demand by 2030.

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.”

BPCL has developed ambitious plans for new capacities and has made substantial progress toward achieving them. The company plays a significant role in strengthening India’s industrial foundation.