Wedoany.com Report-Oct. 30, Bharat Petroleum Corporation Limited (BPCL) and Oil India Limited (OIL) will jointly establish an integrated greenfield refinery and petrochemical complex in Ramayapatnam, Andhra Pradesh, with an estimated investment of INR 1 lakh crore (USD 11 billion). This initiative represents a major step in India’s downstream energy expansion and aligns with BPCL’s long-term growth strategy focused on refining, petrochemicals, green energy, and logistics development.

BPCL has entered into three memoranda of understanding (MoUs) with OIL, Numaligarh Refinery Limited (NRL), and Fertilisers & Chemicals Travancore Limited (FACT). These agreements are intended to enhance cooperation across multiple segments of the energy value chain and contribute to sustainable industrial growth.

Under the non-binding MoU between BPCL and OIL, both companies will explore collaboration opportunities for the upcoming Ramayapatnam project. The proposed facility will have a refining capacity of 9–12 million tonnes per year and is designed to serve as a cornerstone for southern India’s petrochemical industry. The complex will include a 1.5 million tpy ethylene cracker unit, the first of its kind in the region, with a 35% petrochemical intensity, among the highest in the country. Supported by the Government of Andhra Pradesh, the project has already secured key clearances and 6,000 acres of land, with pre-construction activities currently in progress.

BPCL and OIL are also considering options for OIL to acquire a minority equity stake in the venture. The project is targeted for commercial operations by FY2030, and is expected to contribute significantly to regional industrialization, employment, and energy security.

In a separate development, BPCL, OIL, and NRL signed a tripartite MoU to strengthen product evacuation and logistics following NRL’s capacity expansion from 3 million tpy to 9 million tpy. The plan includes construction of a 700-kilometer cross-country petroleum product pipeline connecting Siliguri to Mughalsarai via Muzaffarpur, with an estimated investment of INR 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 stake equally.

To reinforce downstream logistics, the partners will expand BPCL’s depots at Mughalsarai and Muzaffarpur, and establish new facilities at Singrauli (Madhya Pradesh), Korba (Chhattisgarh), Khagaria (Bihar), and Tatanagar (Jharkhand).

These agreements collectively highlight BPCL’s integrated approach to expanding refining capacity, strengthening petrochemical production, and developing sustainable infrastructure. They also support India’s broader goals of energy self-reliance and industrial development, ensuring that future growth aligns with national sustainability objectives while enhancing regional economic opportunities.