BPCL plans new refinery in Andhra Pradesh
Bharat Petroleum already has three refineries in western India but wants to set up a fourth in Andhra Pradesh.
"We have started the process of selecting a consultant, confirms a BPCL source." On April 25 (2024), BPCL invited offers from consultants interested in preparing a Pre-Feasibility Report (PFR) with suggestions on the refinery configuration, infrastructure needed, CAPEX estimates, risk assessment, project planning and execution.
BPCL received bids on May 21 (2024). "Whoever wins must work out how to set up a greenfield refinery from scratch", we hear.
"We want to set up a 12m t/y refinery and petrochemicals complex." Refinery products will include petrol, diesel, aviation turbine fuel, naphtha and LPG, while the petrochemical products will include ethylene, propylene, benzene, polypropylene and styrene.
BPCL presently operates the 6.9m t/y Mumbai refinery, the 15.5m t/y Kochi refinery in Kerala and the 7.8m t/y Bina refinery in Madhya Pradesh. BPCL had a 61.65% stake in the 3m t/y Numaligarh refinery but sold this on March 26 (2021) to a consortium of Oil India, Engineers India and the Assam government for Rs9876cr ($1.18bn).
For the proposed east coast refinery, BPCL is already in talks with the Andhra government to acquire land on the 972-km coastline. BPCL wants the selected consultant to study refinery and petrochemicals production against projected domestic demand, BS VI specifications, and return on investment.
Also needed is a detailed financial analysis and investment estimates with an accuracy of plus or minus 30%. "The consultant will need to arrive at the results with the most accuracy to conclude on the technical and economic viability of the project that will allow BPCL to make well-informed investment decisions", reads the 18-page scope of work.
From the award date, the consultant will have 24 weeks to submit the report.