BPCL to complete Andhra refinery feasibility report by December 2025

Bharat Petroleum will complete the feasibility report for its Andhra Pradesh greenfield refinery by December 2025 before beginning talks with foreign partners for collaboration

State-run Bharat Petroleum Corporation Ltd (BPCL) expects to complete the detailed feasibility report (DFR) for its upcoming greenfield refinery in Andhra Pradesh by December 2025, a top company executive told Business Standard.

 

The oil marketing company (OMC) will begin final negotiations for collaboration with foreign players for the refinery-cum-petrochemical project after finalising the configuration of the plant, said Vetsa Ramakrishna Gupta, Director (Finance), BPCL.

 

BPCL is setting up the greenfield refinery in Andhra Pradesh’s Nellore district to meet rising domestic energy demand and support India’s goal of becoming a global refining hub. The company currently operates three refineries — in Mumbai (Maharashtra), Kochi (Kerala), and Bina (Madhya Pradesh).

 

 

Gupta said the feasibility report would determine the total cost and capacity of the refinery. “We should be clear about the total cost of the project and configuration (of the refinery). We can have commercial discussions (with foreign players) then. We have not reached that stage yet,” he said. BPCL is currently in the process of acquiring land for the project.

 

Talks with foreign partners

 

BPCL is in discussions with foreign players, including Saudi Arabia, for investments in the proposed refinery. In 2019, Saudi Arabia had signed a memorandum of understanding (MoU) with India, announcing plans to invest $100 billion in sectors such as energy, agriculture, infrastructure, and manufacturing. However, the investment has not yet materialised.

 

Countries including Russia and the United States have also expressed interest in India’s energy sector. “A (foreign) partnership will help in terms of technology support and ensure long-term crude supply continuity for the project,” Gupta said, without disclosing details of the foreign entities involved.

 

India’s refining hub goal

 

India, the world’s fourth-largest oil refiner, aims to boost refining capacity amid strong fuel demand. The government’s initial plan to set up a 60 million metric tonne per annum (mmtpa) refinery in Maharashtra’s Ratnagiri was shelved due to land acquisition challenges.

 

Following that, the oil ministry directed state-run OMCs to develop smaller refineries of 20–25 mmtpa capacity. The government is focused on commissioning new refineries and expanding existing ones to raise India’s total refining capacity to 450 mmtpa by 2030, up from around 250 mmtpa at present.