BPCL refinery approvals for a proposed refinery and petrochemicals complex in Andhra Pradesh are expected by February 2027, Bharat Petroleum Corporation said on October 26, 2026. The state-run company plans to seek a board investment decision before pursuing the remaining government clearances.

Key Takeaways

  • BPCL now plans a 10 million-tonne-per-year refinery, up from an earlier 9 million-tonne proposal.
  • The investment decision remains subject to financial closure and government approvals.
  • BPCL is considering a debt-to-equity ratio of either 70:30 or 65:35 and wants to dilute at least 30% of the project’s equity.

BPCL refinery design and approval steps

The proposed complex would have a high petrochemicals intensity of around 32% to 33%, BPCL Director of Finance VRK Gupta said on a post-results analyst call. An earlier plan envisaged a 9 million-tonne-per-year refinery with a mix of approximately 3 million to 3.5 million tonnes of petroleum products and around 4 million tonnes of petrochemicals.

Gupta said the detailed feasibility report was nearing completion and that BPCL expected to take the project to its board for a final investment decision in two to three weeks. Cost details would be shared once the figures were finalized and presented to the board.

The decision would be subject to financial closure and approval from the Oil Ministry and the Cabinet Committee on Economic Affairs. Gupta said pre-project work and licence selection were proceeding in parallel.

Subsidiary, financing and land

BPCL’s board has approved the creation of a subsidiary that would initially be wholly owned by the company. Gupta said the proposal would go to the Oil Ministry before the subsidiary is incorporated.

The company is considering bringing in partners as the project progresses. Around 4,700 acres of land have been registered in BPCL’s name, enough for initial work, Gupta said. Another 1,400 acres, mainly for a green belt and other purposes, were expected by November 2026.

Mozambique LNG project update

Separately, BPCL said the Mozambique liquefied natural gas project was 47% complete as of September 2026, with gas production expected around June or July 2028.

BPCL holds a 10% participating interest through subsidiaries. Gupta said its share of the first phase would be around 1.3 million tonnes of gas. BPCL said it had tied up a sales and purchase agreement for 1 million tonnes and had begun marketing the gas.

Next milestone

BPCL expects to present the refinery proposal to its board for a final investment decision in the coming weeks.

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