State-run Bharat Petroleum Corporation (BPCL) said on Monday that it expects all the approvals, including clearance by the Oil Ministry and the Union Cabinet, for the proposed refinery-cum-petrochemicals complex in Andhra Pradesh to be completed by February 2027.
The PSU oil marketing company (OMC) now plans to set up a 10 million tonnes per annum (mtpa) refinery with high petrochemicals intensity. Earlier, the plan was to set up a 9 mtpa refinery with a mix of about 3-3.5 mt of petroleum products and around 4 mt petrochemicals.
The company is eyeing at least 30 per cent equity dilution in the refinery-cum-petrochemicals complex.
“In the last board meeting, our board has approved a wholly owned subsidiary. Initially with 100 per cent stake. So, first step of creating subsidiary has been done. Now, it will go to MoPNG. After MoPNG recommendation, the incorporation of the company will happen,” said BPCL Director (Finance) VRK Gupta at a post-result analyst call.
The detailed feasibility report (DFR) is almost in its final stages. The numbers have been frozen, just reviews are going on. Maybe in another couple of weeks, BPCL will conclude on the numbers, he added.
“Broadly, we are looking at a configuration of 10 mtpa of refinery, with a high intensity of petrochemicals, around 32-33 per cent. The cost numbers, once we are finalising and take to the Board, at that time we can share full details. The scheduled timelines, we are expecting maybe next 2-3 weeks, we will take to the board for the final investment decision (FID), Gupta said.
This will be subject to financial closure and also to Oil Ministry and the cabinet committee on economic affairs (CCEA) approval because the investment is happening through a subsidiary company, he explained.
“We are expecting that once Board approves, another 2-3 months the CCEA approval shall come. Parallel activities such as pre-project activities, licence selection, and other things are going on. May be in 3-4 months, we are hopeful the entire approvals will be completed,” Gupta said.
In terms of the land procurement, he said around 4,700 acre of land has been registered in the name of BPCL, which is sufficient for initial work. Another 1400 acre, which is required mainly for green belt and other things, is expected by November 2026. The entire 6,000 acre of land requirement by the AP government will be completed.
“We are planning, either 70-30 or 65-35 debt-equity level. We are keen to dilute at least 30 per cent of equity dilution when the project is in progress. Once the terms are agreed, the partners will join with us,” Gupta added.
The Mozambique liquefied natural gas (LNG) project continues to progress steadily, reaching 47 per cent completion as of September 2026, with gas production expected by mid-2028, likely June or July 2028.
BPCL subsidiary Bharat PetroResources (BRPL) through its Netherlands-based step-down subsidiary BPRL Ventures Mozambique holds a 10 per cent Participating Interest (PI) in the LNG project. BRPL along with ONGC Videsh (OVL) and Oil India (OIL) hold a total of 30 per cent stake in the project, which is led by Total Energies.
“They have declared June 20, the first gas we can see. In terms of gas flow, the first phase development is for 13 mt of two trains development, out of which BPCL is having a 10 per cent share. That means our share will be around 1.3 mt of gas. This is only for phase one development. Subsequently, based on the reserves, we can develop two more trains,” Gupta said.
BPCL said it has tied up the Sales and Purchase Agreement (SPA) for 1 mt of gas. The company has also started marketing the gas and some customers have been tied up, albeit for small volumes.
Published on October 26, 2026
