Bharat Petroleum Corporation Limited (BPCL) is set to expand its gas business, aiming to double its market share in the next five years.
As India pushes for a greener energy ecosystem, the company is focusing on liquefied natural gas (LNG) to drive its transition.
LNG Supply Deal with ADNOC
To meet the rising demand for natural gas, particularly in city gas distribution (CGD), BPCL is finalizing a five-year LNG supply deal with Abu Dhabi National Oil Company (ADNOC).
The agreement, valued at around 0.45 million tons per annum, will be signed during India Energy Week (IEW) 2025.
Major Investments in Gas Business
BPCL’s Director (Finance), VRK Gupta, highlighted the company’s aggressive expansion plans.
“Currently, our gas business accounts for about 4% of our portfolio, but we aim to increase it to at least 8-9%,” he stated.
To achieve this, BPCL plans to invest ₹25,000 crore over the next five years in the CGD business, covering both compressed natural gas (CNG) and LNG infrastructure.
LNG Trucks
BPCL sees significant potential in LNG-powered trucks as an alternative to diesel for long-haul transportation. The company believes LNG adoption in trucking could play a crucial role in reducing emissions and improving fuel efficiency.
Exploring Long-Term LNG Contracts
During BPCL’s Q3 FY25 investor call, Gupta addressed the company’s strategy for securing natural gas supplies.
“We are evaluating long-term contracts to bridge the shortfall in APM gas. These could be based on Henry Hub pricing or other index-based cargo-sharing agreements,” he explained.
Expanding RLNG Infrastructure
BPCL has already established two regasified LNG (RLNG) stations and plans to build ten more along key highways. This expansion, expected to cost ₹150-200 crore, will enhance India’s LNG refueling network.
India’s Growing Energy Demand
India’s energy consumption is increasing at a rapid pace. While global energy demand grows by 1.2-1.3% annually, India’s demand is rising at 4-4.5%.
The country currently consumes around 5.4-5.5 million barrels per day (mb/d), a figure projected to reach 8.5 mb/d by 2040.
LNG as a Key Alternative
Gupta emphasized the need for alternative energy sources.
“India doesn’t produce enough energy to meet future demand. Renewable energy and electric vehicles (EVs) take time to scale, and green hydrogen remains expensive. That leaves LNG as a viable option, given its lower CO₂ emissions,” he said.
As reported by thehindubusinessline.com, with a strong commitment to LNG, BPCL is positioning itself at the forefront of India’s energy transition, ensuring cleaner and more efficient fuel alternatives for the future.
