BPCL, Oil India plan $11.4 billion refinery-petrochemical complex in southern India

India’s Bharat Petroleum Corp Ltd (BPCL) and Oil India Ltd are joining forces to develop a Rs 1 trillion ($11.4 billion) refinery and petrochemical complex in Andhra Pradesh, as the world’s third-largest oil importer and consumer accelerates efforts to reposition itself as a refining and petrochemical hub.

Oil India is considering taking a 10–20% stake in the project, while BPCL is seeking additional partners to support the investment. The proposed refinery, with a processing capacity of 180,000–240,000 barrels per day, has secured key statutory clearances and 6,000 acres of land from the state government, BPCL said in a statement. Pre-project work is already underway.

The complex will include a 1.5 million tons per year ethylene cracker, aimed at boosting India’s domestic petrochemical output and reducing reliance on imports. Commercial operations are targeted for fiscal year 2030, aligning with the government’s broader push to enhance downstream self-sufficiency and value-added exports.

Separately, Oil India is also partnering with BPCL and Numaligarh Refinery Ltd (NRL) on a 700-km multiproduct pipeline from Siliguri to Mughalsarai, designed to transport petrol, diesel, and jet fuel. BPCL will hold a 50% stake in the venture, with Oil India and NRL sharing the remainder.

Oil India is also ramping up its downstream presence through its unit in NRL, which is expanding its refinery in the state of Assam to 180,000 barrels per day by March 2027.

BPCL, India’s second-largest state-run refiner, currently operates 706,000 barrels per day of crude capacity across three refineries.

Written by: Farid Muzaffar