BPCL and Oil India to Develop $11 Billion Refinery and Petrochemical Complex in Andhra Pradesh
BPCL and Oil India signed a non-binding MoU to collaborate on a greenfield refinery and petrochemical complex near Ramayapatnam Port, Andhra Pradesh, with an investment of $11 billion and refining capacity of 9-12 million tpy. The project includes a 1.5 million tpy ethylene cracker unit and aims to begin commercial operations by FY 2030, supporting India's downstream expansion and energy security.
Bharat Petroleum Corporation Limited (BPCL) and Oil India Limited (OIL) have signed a non-binding memorandum of understanding (MoU) to jointly develop a greenfield refinery and petrochemical complex in Nellore district, Andhra Pradesh, India. Valued at approximately $11 billion (₹1 lakh crore), the facility is designed to have a refining capacity between 9 and 12 million tonnes per annum. It will include a 1.5 million tonne per year ethylene cracker unit, a first for southern India, with a high petrochemical intensity of 35%. The project has secured statutory clearances and 6,000 acres of government-allocated land, with pre-project activities underway. BPCL and OIL will also consider OIL holding a minority equity stake in the joint venture. Completion and commercial operation are expected by the financial year 2030, aiming to enhance India's downstream infrastructure, bolster regional industrial development, generate employment, and improve energy security. Additionally, BPCL, OIL, and Numaligarh Refinery Ltd (NRL) signed a tripartite MoU to develop a cross-country pipeline to facilitate petroleum product evacuation following NRL’s refinery expansion. The combined efforts also focus on expanding refining capacity, deepening petrochemical integration, advancing green energy initiatives, and augmenting logistics networks to align with the Indian government’s vision of Atmanirbhar Bharat emphasizing sustainability and energy self-reliance.
