Bharat Petroleum Corporation Limited (BPCL) signed a non-binding agreement with Oil India Limited (OIL) to explore collaboration in developing BPCL’s upcoming Greenfield Refinery and Petrochemical Complex near Ramayapatnam Port in Nellore district, Andhra Pradesh.
BPCL plans to build a ₹1 lakh crore facility with a refining capacity of 9–12 million metric tons per annum (MMTPA), positioning it as one of southern India’s most advanced integrated energy projects.
Pioneering Petrochemical Infrastructure in Southern India
A 1.5 MMTPA ethylene cracker unit, the first of its kind in southern India with 35% petrochemical intensity, will anchor the Ramayapatnam complex. The project aims to commence commercial operations by FY 2030 to meet India’s growing demand for petrochemicals and specialty products.
Under the Memorandum of Understanding (MoU), BPCL and OIL will jointly evaluate opportunities for collaboration. The discussions will also explore the possibility of OIL acquiring a minority equity stake in the upcoming venture.
Project Progress and Strategic Advantages
According to Sanjay Khanna, Director (Refineries) and additional charge of Chairman & Managing Director, BPCL, the project has already achieved key milestones. “The Ramayapatnam refinery has secured all major statutory clearances and 6,000 acres of land from the Government of Andhra Pradesh. Pre-project activities are already underway,” he stated.
The strategically located refinery will leverage its proximity to Ramayapatnam Port for feedstock imports and product exports. This advantage will help position Andhra Pradesh as a major downstream hub in India’s energy landscape.
Tripartite MoU to Strengthen Product Evacuation Network
In a related development, BPCL, OIL, and Numaligarh Refinery Limited (NRL) have signed a tripartite MoU. This ensures efficient evacuation of petroleum products following NRL’s expansion from 3 MMTPA to 9 MMTPA.
The agreement includes the joint construction of a 700-km cross-country product pipeline from Siliguri to Mughalsarai via Muzaffarpur, at an estimated investment of ₹3,500 crore. The pipeline will transport Motor Spirit (MS), High-Speed Diesel (HSD), and Aviation Turbine Fuel (ATF). BPCL will hold 50% ownership, while OIL and NRL will share the remaining 50%.
Advancing Circular Economy Through Bioenergy Collaboration
As reported by thehindubusinessline.com, BPCL has signed a pact with Fertilisers and Chemicals Travancore Limited (FACT). The agreement covers the supply and trading of Fermented Organic Manure (FOM) and Liquid Fermented Organic Manure (LFOM). These products will be sourced from BPCL’s upcoming Municipal Solid Waste (MSW)-based Compressed Biogas (CBG) Plant at Brahmapuram. The facility is located near Kochi Refinery.
The facility will process 150 tons of municipal waste per day, generating 5.6 tonnes of CBG, 28 tonnes of FOM, and 100 kilolitres of LFOM daily. This initiative reinforces BPCL’s commitment to sustainable waste management and renewable energy generation. It supports India’s transition to a circular and low-carbon economy.
