Bharat Petroleum Corporation Limited (BPCL) is on a transformative journey, transitioning from a traditional oil marketing company to an integrated energy provider. Over the past few years, the company has undertaken several initiatives aimed at advancing India’s energy transition goals. During the 72nd annual general meeting of BPCL, Sanjay Khanna, Director (Refineries) with Additional Charge of Chairman and Managing Director, highlighted the company’s key initiatives and future plans. Edited excerpts…
Global oil dynamics and India’s energy future
The global oil sector is undergoing a fundamental shift, one that goes beyond price cycles and market volatility. Structural changes are redefining both demand and supply dynamics as the world transitions to cleaner energy and diversified fuel sources. By 2030, global oil demand is expected to increase by 2.5 million barrels per day, eventually plateauing at approximately 105.5 million barrels per day by the end of the decade.
On the supply side, the unwinding of oil production cuts is resetting supply trajectories over the 2024-30 forecast period. Globally, as the transport and power generation sectors continue to diversify towards alternative fuels, the petrochemical industry is likely to become the dominant source of oil demand growth.
Meanwhile, India is emerging as one of the most dynamic growth drivers in the global economy. It is not only propelling its own development but also contributing significantly to global growth. The vision of Viksit Bharat 2047 places the energy sector at the heart of this transformation.
According to recent reports, India is projected to add 1 million barrels per day of incremental oil demand by 2030, the highest in the world. This surge is driven by sustained economic expansion, rising mobility and rapid industrialisation, positioning India as a cornerstone of the global energy landscape.
As the global energy transition accelerates, India is pursuing a pragmatic and inclusive pathway – balancing hydrocarbons with renewables to ensure a sustainable, affordable and secure transformation. The shift to cleaner energy sources is inevitable, and oil and gas will continue to play a vital role in facilitating this transition. At BPCL, we embrace this responsibility with absolute clarity and conviction. Project Aspire is our compass for the future, strengthening our core operations in refining, marketing and upstream activities, while also advancing into areas like petrochemicals, renewables, green hydrogen, biofuels and gas.
“As the global energy transition accelerates, India is pursuing a pragmatic and inclusive pathway — balancing hydrocarbons with renewables to ensure a sustainable, affordable and secure transformation.”
BPCL’s milestones in 2024-25
Despite a challenging external environment, BPCL delivered robust results, recording the highest profits among all PSU oil marketing companies (OMCs). Our refineries processed the highest-ever crude throughput of 40.5 million metric tonnes (mmt), operating at 115 per cent of their design capacity. During 2024-25, the company achieved its highest-ever capital expenditure of Rs 169.67 billion, marking an increase of 45 per cent over the previous year. This includes strategic investments in subsidiaries, joint ventures and associates.
On the operational front, BPCL achieved a crude throughput of 40.5 mmt per annum (mmtpa). Our gross refining margin (GRM) of $6.82 per barrel is the highest among PSU OMCs. The company has consistently witnessed higher capacity utilisation, supported by various reliability improvement initiatives, a diversified crude basket, meticulous sourcing and processing strategies, and sustained efforts to reduce energy consumption. These practices have enabled BPCL to surpass the benchmark Singapore GRM for the year.
Our Mumbai refinery is set for a major upgrade, which includes replacing the existing catalytic cracking unit (CCU) and fluidised catalytic cracking unit (FCU) with a state-of-the-art petro resid fluidised catalytic cracking unit (PRFCC) and its associated facilities, at an approved investment of Rs 142 billion.
Looking ahead, the refining sector in India is set for a transformative phase, with growth increasingly driven by petrochemical integration. BPCL’s two major petrochemical projects at Bina and Kochi, with a combined capital investment of Rs 540 billion, are well on schedule in both execution and financing.
BPCL is also evaluating the setting up of a greenfield refinery-cum-petrochemical complex near Ramayapatnam port in Andhra Pradesh. Pre-project activities are already under way. This strategic investment will help us expand our petrochemical portfolio and align with India’s vision of becoming a global hub for refining and petrochemicals.
Focus on upstream
Through its subsidiary, Bharat PetroResources Limited (BPRL), BPCL is actively engaged in the upstream business. A key update during 2024-25 was the steady progress in Mozambique’s Offshore Area 1, where BPCL has a 10 per cent stake in a gas asset with nearly 70 trillion cubic feet of recoverable resources. While security concerns had delayed the project, conditions have improved now, and full-scale development is expected to resume soon. Once operational, this two-train liquified natural gas (LNG) project will boost our upstream presence and support the energy transition. We have already secured LNG marketing rights in line with our 10 per cent participating interest.
In addition to Mozambique, our upstream portfolio in Brazil is advancing, with BM-SEAL-11 moving into the tendering stage for the FPSO (floating production storage and offloading) vessel and other long-lead items. Meanwhile, our Nunukan asset in Indonesia has received regulatory approval for its plan of development, paving the way for the project’s advancement.
In India, the Ministry of Petroleum and Natural Gas continues to prioritise upstream reform to attract investment in exploration and production. The recent Oilfield Regulatory and Development Amendment Act, 2025, has simplified approvals and made terms more investor-friendly. These reforms aim to unlock new acreages and improve recovery from existing fields, creating opportunities for BPCL to pursue selective, high-potential investments in India’s sedimentary basins.
Update on the gas business
During 2024-25, BPCL supplied 1,829 thousand metric tonnes (tmt) of gas, with the city gas distribution (CGD) network recording an impressive 80 per cent growth. To support this robust expansion, BPCL has invested Rs 22.83 billion in CGD infrastructure. As of March 31, 2025, about 840 compressed natural gas (CNG) stations had been mechanically commissioned, and 634 are already operational. An additional 100 CNG stations are planned for construction during 2025-26. Domestic gas penetration has also strengthened, with a record 233,000 new piped natural gas (PNG)connections, bringing the cumulative total to 564,000. To support this growth, BPCL has laid 23,500 inch-km of steel pipelines to ensure reliable last-mile connectivity.
Initiatives to support green energy
BPCL is committed to achieving net zero Scope 1 and Scope 2 greenhouse gas emissions by 2040, and our efforts in refining, renewable energy and biofuels are paving the way for this. By 2035, we aspire to build a renewable energy portfolio of 10 GW.
During 2024-25, BPCL strengthened its renewable energy portfolio, with a total installed capacity of around 155 MW from solar and wind. The company is also developing high-potential projects, including a 71 MW solar plant in Prayagraj and two 50 MW wind farms in Madhya Pradesh and Maharashtra. To further scale these efforts, BPCL has formed a joint venture company with Sembcorp Green Hydrogen India Private Limited, a subsidiary of Sembcorp Industries, to jointly explore large-scale opportunities in renewable energy and green hydrogen across India.
On the green hydrogen front, a 5 MW electrolyser unit has been commissioned at the Bina refinery. To promote green hydrogen for mobility, a green hydrogen refuelling station at Kochi, in partnership with Cochin International Airport Limited, is ready for commissioning. BPCL is also exploring innovative applications, from hydrogen-powered buses to vertical take-off and landing aircraft, reinforcing our vision of sustainable and clean mobility.
In terms of biofuels, ethanol blending increased to 16.35 per cent in 2024-25, up from 11.7 per cent the year prior. In August 2025, our blending levels neared the 20 per cent mark, positioning us ahead of the national target deadline for 2025-26. Alongside bioethanol, our compressed biogas (CBG) programmes under the government’s SATAT scheme are gaining strong momentum, with a total of 10 CBG plants commissioned by BPCL SATAT letter of intent (LoI) holders.
Our first CBG plant at Kochi, which processes municipal solid waste with the support of the local administration, exemplifies our waste-to-energy initiative. Looking ahead, we plan to set up 25 additional CBG plants in the near future, further promoting locally produced, sustainable fuels. To drive this initiative, we have formed a joint venture with GPS Renewables Private Limited and are working on another joint venture with Praj Industries. Our 1G/2G bioethanol refinery in Bargarh is under commissioning.
The way forward
This year marks BPCL’s golden jubilee, a milestone that not only honours our past but also motivates us to push boundaries and strengthen our organisation for the future. We have come a long way, from a single refinery processing 3.8 mmt of crude to three refineries together processing over 40.5 mmt at present. From 3.6 mmt of product sales fifty years ago, we now deliver over 52.4 mmt.
As we celebrate this golden milestone, we look ahead to the next 50 years, which will be even more transformative than the first 50. To realise this vision, we have embarked on a multiyear capex cycle, and will ensure that projects are delivered on schedule to translate into real value for the country’s growth.
“BPCL is committed to achieving net zero Scope 1 and Scope 2 greenhouse gas emissions by 2040, and our efforts in refining, renewable energy and biofuels are paving the way for this. By 2035, we aspire to build a renewable energy portfolio of10 GW.”
