BPCL Enters Green Energy Race with Biogas and Petrochemical Partnerships

Bharat Petroleum Corporation Limited has signed memoranda of understanding with Oil India Limited, Numaligarh Refinery Limited and Fertilisers & Chemicals Travancore Limited to establish compressed biogas production capacity and petrochemical infrastructure. The announcement was made on 28 October 2025 at the 28th Energy Technology Meet in Hyderabad.

Under the agreement with FACT, BPCL will supply fermented organic manure and liquid fermented organic manure from a compressed biogas plant at Brahmapuram near Kochi Refinery. The facility will process 150 metric tonnes of municipal solid waste daily, generating 5.6 metric tonnes of CBG alongside 28 metric tonnes of fermented organic manure and 100 kilolitres of liquid fermented organic manure daily.

BPCL and OIL signed a non-binding agreement to develop a greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district, Andhra Pradesh. The facility will have refining capacity of 9 to 12 million metric tonnes per annum with an investment of ₹1 lakh crore. The complex will include a 1.5 million metric tonne per annum ethylene cracker unit. The project has obtained statutory clearances and 6,000 acres of land from the Government of Andhra Pradesh, with operations targeted for 2030.

BPCL, OIL and NRL will jointly construct a 700-kilometre cross-country product pipeline from Siliguri to Mughalsarai via Muzaffarpur with investment of ₹3,500 crore. The pipeline will transport motor spirit, high-speed diesel and aviation turbine fuel, with BPCL holding 50 per cent ownership and OIL and NRL sharing the balance.

In India's compressed biogas sector, state-owned companies have taken a lead in expansion. Hindustan Petroleum Corporation Limited has invested ₹20 billion to establish 24 compressed biogas plants over two to three years. Indian Oil Corporation has established a joint venture with GPS Renewables to set up 10 CBG plants with investment of ₹1,200 crore. IOCL is also establishing a CBG plant at Chandigarh using segregated organic municipal waste and cow dung under the SATAT scheme.

The government mandated one per cent compressed biogas blending in transportation and domestic cooking gas from April 2025, to increase to five per cent by 2028-29. India aims to operationalise 480 CBG plants by 2028-29, including 195 run by state-owned oil and gas companies.