Bharat Petroleum Corporation Limited (BPCL) is set to increase its integrated refining and petrochemical capacities over the next five to seven years to meet the rising energy demand, according to Chairman G. Krishnakumar.
India’s annual consumption of refined fuels and petrochemicals is projected to grow steadily by 4-5% and 7-8%, respectively, in the foreseeable future, Krishnakumar informed shareholders. “This presents a strategic opportunity for BPCL to expand refining capacity while simultaneously developing integrated petrochemical complexes,” he stated.
As part of this expansion, BPCL is considering the construction of a new oil refinery with a capacity of 180,000-300,000 barrels per day (bpd) in either southern Andhra Pradesh or northern Uttar Pradesh, according to an industry source in July.
These new capacities will complement an existing project, valued at ₹1.7 trillion, which BPCL announced earlier this year. This project includes the expansion of refining facilities, fuel retailing, and petrochemical production.
Krishnakumar also mentioned that BPCL plans to fund these expansion projects through a combination of internal accruals and borrowing from both local and international markets.
Earlier this year, BPCL outlined plans to increase its refining capacity to 900,000 bpd and develop two new petrochemical projects at its 310,000 bpd Kochi refinery in southern India and its 156,000 bpd Bina refinery in central India.
Currently, BPCL processes approximately 700,000 bpd across its three refineries in India. The company aims to commission the petrochemical projects at Kochi and Bina by 2027 and 2028, respectively.
In addition to these petrochemical initiatives, BPCL is expanding the Bina refinery’s capacity to 300,000 bpd, with completion expected by 2026.
On the retail front, BPCL plans to add 4,000 new fuel retail outlets across India within the next five years, bringing its total to 26,000, according to Krishnakumar.
Looking ahead, BPCL has set an ambitious target to achieve net-zero carbon emissions by 2040. To reach this goal, the company is investing ₹1 trillion in renewable power generation, green hydrogen production, compressed biogas, and carbon capture, utilization, and storage technologies.
BPCL aims to build 2 gigawatts (GW) of renewable energy capacity by 2025 and expand this to 10 GW by 2035, Krishnakumar added.
