BPCL, OIL to explore collaboration for proposed refinery in Andhra Pradesh

State-owned Bharat Petroleum Corporation Limited (BPCL) and Oil India Limited (OIL) signed an MoU on Tuesday (October 28, 2025) to explore collaboration for BPCL’s upcoming greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district, Andhra Pradesh.

The companies will evaluate opportunities for collaboration, including the possibility of OIL taking a minority equity stake in the proposed joint venture, for the proposed 9–12 million tonnes facility to be established with an estimated investment of ₹1 lakh crore ($11 billion). The project has secured key statutory clearances and 6,000 acres from Andhra Pradesh Government, with pre-project activities in progress.

“By joining hands with OIL, we are combining complementary strengths to create a project of strategic scale and sustainability. The Ramayapatnam complex will not only reshape BPCL’s portfolio but also reinforce India’s self-reliance in fuels and petrochemicals, in line with the vision of Atmanirbhar Bharat,” said Sanjay Khanna, BPCL’s Director (Refineries) who is holding additional charge of Chairman and Managing Director post.

This was one of three Memorandum of Understandings (MoUs) BPCL signed on the sidelines of the three day Energy Technology Meet that got underway in Hyderabad. The other MoUs were with Numaligarh Refinery (NRL) and Fertilisers & Chemicals Travancore (FACT).

CMD of Oil India and Chairman of Numaligarh Refinery Limited (NRL) Ranjit Rath said the “collaboration reaffirms our commitment to pursue various strategic diversification initiatives to midstream and downstream”.

“Together, we aim to create long-term value, enhance energy security, and participate in India’s expanding refinery and petrochemical ecosystem. This collaboration also embodies OIL’s strategic intent to diversify into integrated energy ventures that support sustainable national growth,” he added.

The Ramayapatnam complex will feature a 1.5 MTPA ethylene cracker unit, the first of its kind in southern India, with a 35% petrochemical intensity — among the highest in the country. The project is slated for commercial operations by FY 2030 and expected to catalyse industrial development, employment generation, and regional energy security.

BPCL, OIL and NRL also signed a tripartite MoU to facilitate efficient evacuation of petroleum products following NRL’s expansion from 3 MTPA to 9 MTPA. The agreement covers the joint construction of a 700-km cross-country product pipeline from Siliguri to Mughalsarai via Muzaffarpur, with an estimated investment of ₹3,500 crore.

The pipeline will move petrol (Motor Spirit) (MS), High-Speed Diesel and Aviation Turbine Fuel (ATF) and jointly owned by BPCL (50%) with OIL and NRL sharing the remaining 50% stake.

The companies will augment BPCL’s depots at Mughalsarai and Muzaffarpur, and develop new facilities at Singrauli (Madhya Pradesh), Korba (Chhattisgarh), Khagaria (Bihar) and Tatanagar (Jharkhand).

BPCL’s MoU with Fertilisers and Chemicals Travancore (FACT) is for supply and trading of Fermented Organic Manure (FOM) and Liquid Fermented Organic Manure (LFOM) produced from BPCL’s upcoming Municipal Solid Waste (MSW)-based Compressed Biogas (CBG) Plant at Brahmapuram, near Kochi Refinery.

The plant will process 150 MT of municipal waste per day, generating 5.6 MT of CBG, along with 28 MT of FOM and 100 KL of LFOM daily.

This collaboration will enable FACT to trade high-quality organic fertilizers, supporting sustainable agriculture while contributing to India’s waste-to-energy and green fuel vision, BPCL said in a release.

Senior officials of the companies exchanged the MoU documents in the presence of Pankaj Jain, Secretary to the Ministry of Petroleum and Natural Gas.