BPCL and Oil India set to build US$11 billion refinery

BPCL has signed three landmark memoranda of understanding MoUs with Oil India Ltd (OIL), Numaligarh Refinery Ltd (NRL), and Fertilisers & Chemicals Travancore Limited (FACT).

These partnerships mark significant milestones in BPCL’s integrated growth strategy – spanning refining, petrochemicals, green energy, and logistics infrastructure – and reaffirm its commitment to building a sustainable and self-reliant energy future for India.

BPCL and OIL signed a non-binding MoU to explore collaboration in developing BPCL’s upcoming greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district, Andhra Pradesh, India. The proposed facility, with a refining capacity of 9 - 12 million tpy and an estimated investment of IR1 lakh crore (US$11 billion), will be a cornerstone of India’s downstream expansion.

Under the MoU, the companies will evaluate opportunities for collaboration, including the possibility of OIL taking a minority equity stake in the proposed joint venture. The project has already secured key statutory clearances and 6000 acres of land from the government of Andhra Pradesh, with pre-project activities in progress.

The Ramayapatnam complex will feature a 1.5 million tpy ethylene cracker unit, the first of its kind in southern India, with a 35% petrochemical intensity – among the highest in the country. Supported by the government of Andhra Pradesh, the project is slated for commercial operations by financial year 2030, expected to catalyse industrial development, employment generation, and regional energy security.

In another major development, BPCL, OIL, and Numaligarh Refinery Ltd (NRL) signed a tripartite MoU to facilitate efficient evacuation of petroleum products following NRL’s expansion from 3 million tpy to 9 million tpy.

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 IR3500 crore. The pipeline, designed to transport motor spirit (MS), high-speed diesel (HSD) and aviation turbine fuel (ATF), will be jointly owned by BPCL (50%), with OIL and NRL sharing the remaining 50%.

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

Collectively, these three MoUs highlight BPCL’s holistic approach to expanding refining capacity, advancing petrochemical integration, accelerating green energy initiatives, and building robust logistics networks. Together, they reflect BPCL’s alignment with the government of India’s vision of Atmanirbhar Bharat – fostering self-reliance, sustainability, and energy security for the nation.

Read the article online at: https://www.hydrocarbonengineering.com/refining/29102025/bpcl-and-oil-india-set-to-build-us11-billion-refinery/