Bharat Petroleum Corporation Ltd (BPCL) expects approvals for its proposed Andhra Pradesh refinery-cum-petrochemicals complex to be completed by February 2027, as the state-run oil company prepares to develop a larger and more petrochemicals-intensive project than originally planned.
The revised project is being designed as a 10 million tonnes per annum (mtpa) refinery with petrochemicals accounting for around 32-33 per cent of its configuration. BPCL had earlier planned a 9 mtpa refinery with a mix of approximately 3-3.5 million tonnes of petroleum products and around 4 million tonnes of petrochemicals.
BPCL Director (Finance) VRK Gupta said the company’s board had approved the creation of a wholly owned subsidiary to develop the project. The subsidiary will initially be fully owned by BPCL, after which the proposal will be sent to the Ministry of Petroleum and Natural Gas (MoPNG) for recommendation and incorporation.
The detailed feasibility report is in its final stages, with the project numbers largely frozen and undergoing review. Gupta said the report could be taken to BPCL’s board for a final investment decision in the next two to three weeks. The decision will be subject to financial closure and approvals from MoPNG and the Cabinet Committee on Economic Affairs because the investment will be undertaken through a subsidiary.
BPCL expects the CCEA approval to follow within two to three months after the board’s decision. The company has also begun parallel pre-project activities, including licence selection and related preparatory work. Gupta said the full approval process could be completed within three to four months after the board approves the project, placing the targeted timeline around February 2027.
The project will require about 6,000 acres in total. Around 4,700 acres have already been registered in BPCL’s name and are considered sufficient for the initial work. A further 1,400 acres, primarily intended for a green belt and related requirements, is expected to be available by November 2026. The land procurement is being undertaken in coordination with the Andhra Pradesh government.
BPCL is planning a debt-equity structure of either 70:30 or 65:35. The company is seeking to dilute at least 30 per cent of its equity stake while the project is under development. Strategic or financial partners are expected to join after the terms are finalised, although BPCL has not disclosed the potential partners or the project’s final cost.
The proposed complex will therefore depend on several linked milestones: completion of the feasibility report, board approval, financial closure, petroleum ministry and CCEA clearances, land acquisition and the induction of equity partners. Until those steps are completed, construction and commissioning timelines for the refinery and petrochemicals facilities have not been announced.
BPCL also reported progress on its Mozambique liquefied natural gas project, which was 47 per cent complete as of September 2026. Gas production is expected by June or July 2028. BPCL has a 10 per cent participating interest in the project and expects a share of around 1.3 million tonnes of gas from the first phase, which comprises two trains with a combined capacity of 13 million tonnes. The company said it had tied up a sales and purchase agreement for 1 million tonnes and had begun marketing the gas.
