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BPCL plans $11 bln refinery proj in South India

India's Bharat Petroleum Corp plans to invest $11 billion in southern Andhra Pradesh state for a new refinery and petrochemical project to fulfill increasing fuel need in the world's fastestgrowing major economy, its chairman said.

India wishes to become a significant refining hub providing fuel to the global markets as Western business are cutting crude processing capacities in favour of energy shift.

We feel there is a huge opportunity in refining sector. India's main energy need itself is likewise going to increase 3 to four times as its economy broadens, G. Krishnakumar informed Reuters in an interview.

India aspires to be a developed nation by 2047 with its GDP rising to $30 trillion from the present $3.8 trillion.

BPCL has begun pre-project work consisting of land purchase to construct at least a 9 million metric load per year (tpy) refinery and ethylene cracker in Andhra Pradesh, he stated.

The task will have a 35% petrochemical intensity and could cost 900 billion-950 billion rupees ($ 10.56 billion-$ 11.14. billion).

The company runs three refineries in India with combined. capacity of 35.3 million tpy. It likewise purchases fuels from a 3. million tpy Numaligarh refinery in the northeast.

Krishnakumar said about 80% output from the proposed Andhra. complex will be offered in southern India that houses petchem. designers and car makers.

Indian refiners are raising petrochemical productions as the. nation's per capita consumption is set to rise with increased. production.

BPCL is also checking out establishing a refinery in a joint. endeavor with state-run expedition business Oil and Gas. Corp in northern Uttar Pradesh state, while pushing. for tidy energy objectives, he stated.

Refining growth will help BPCL cut its reliance on fuel. purchases from other business, as it purchases a fifth of 50 million. tpy of refined fuels offered through its retails stations.

Krishnakumar stated BPCL will aggressively bid for eco-friendly. projects tendered by the government and might get companies. to fulfill its target of 10 Gigawatts clean energy projects by. 2035.

It has revealed a joint venture with Sembcorp to. broaden its renewable resource portfolio of 300 megawatts.

Krishnakumar hoped that the operations at the $20 billion. Mozambique liquefied gas (LNG) job, led by France's. TotalEnergies, would begin in the first quarter of. 2025 with monetisation of gas in 2028-29.

BPCL in addition to other Indian business hold 30% stake in. Mozambique job.

(source: Reuters)