India: BPCL advances 9 mnt/year refinery-petrochemical project in Andhra Pradesh

• 3.2 mnt/year petrochemical output planned
• Project includes PE, PP, PVC, SBR units

Bharat Petroleum Corporation Limited (BPCL) is progressing plans for a 9 million tonnes per annum (mnt/year) greenfield refinery-cum-petrochemical complex near Ramayapatnam Port, Andhra Pradesh. The project is estimated to cost around INR 1.45 trillion, with final environmental clearance expected by the end of September 2026. The investment cost is likely to be finalised in October following an Engineers India Limited (EIL) study, while construction is expected to begin thereafter.

Production profile

On the combined stated output basis, fuels would account for approximately 63% (5.4 mnt/year), while petrochemicals would represent around 37% (3.2 mnt/year). However, these figures should not be treated as a complete refinery mass balance or as confirmed product-wise capacities.

The petrochemical portfolio is expected to include high-density polyethylene (HDPE), low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), polypropylene (PP) and polyvinyl chloride (PVC), and styrene butadiene rubber (SBR), according to tender and environmental impact assessment (EIA) documents. Individual capacities for these products have not yet been publicly confirmed.

Downstream integration

Andhra Pradesh Chief Minister N. Chandrababu Naidu has proposed a 1,500-acre downstream petrochemical park near the refinery, to be developed jointly by BPCL and the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

Around 75% of the 6,000 acres required for the project has reportedly been handed over, with the remaining land expected to be transferred by the second week of October 2026.

Market Outlook

The project could increase India’s domestic availability of polyethylene, polypropylene, and PVC over the medium to long term. However, the overall market impact will depend on final product-wise capacities, the final investment decision (FID), technology-licensor selection, construction progress and the commissioning timeline.