Bharat Petroleum Corporation Limited (BPCL) and Oil India Limited (OIL) have signed a joint venture agreement to establish city gas distribution infrastructure in Arunachal Pradesh, marking a significant step towards expanding clean energy access in northeastern India.

Joint Venture Details

The joint venture aims to develop compressed natural gas (CNG) stations and piped natural gas (PNG) supply networks for domestic, commercial, and industrial consumers across Arunachal Pradesh. This initiative follows the BPCL-OIL consortium's successful bid in the 12th City Gas Distribution Bid Round conducted by the Petroleum and Natural Gas Regulatory Board.

Strategic Importance

BPCL Chairman Sanjay Khanna emphasized the company's commitment to expanding clean energy access in northeastern India. This aligns with BPCL's broader strategy of strengthening its presence in the gas sector, as evidenced by its recent investments in City Gas Distribution (CGD) infrastructure.

OIL Chairman Ranjit Rath highlighted the company's existing hydrocarbon production legacy in Arunachal Pradesh, suggesting that this joint venture will build upon OIL's established presence in the region.

Alignment with National Goals

The partnership supports the Indian government's vision of developing a gas-based economy. This initiative is in line with the national objective of increasing the share of natural gas in the country's energy mix, promoting cleaner fuels, and reducing carbon emissions.

BPCL's Gas Business Growth

The joint venture in Arunachal Pradesh complements BPCL's ongoing expansion in the gas sector. BPCL supplied 1,829 TMT of gas, achieving a 3% overall growth, with its City Gas Distribution network recording an 80% growth. The company invested ₹2,283.00 crore in CGD infrastructure during this period.

Infrastructure Development

BPCL had mechanically commissioned 840 CNG stations, with 634 already operational. The company plans to construct an additional 100 CNG stations in the current financial year. BPCL has also made significant progress in domestic gas penetration, adding 2.33 lakh new PNG connections, bringing the cumulative total to 5.64 lakh.

To support this expansion, BPCL has laid 23,500 inch-km of steel pipelines, enabling wider and more reliable last-mile connectivity for gas distribution.

Market Impact

Following the announcement, BPCL shares closed at ₹312.90, down 0.92%, while OIL shares ended at ₹397.80, down 2.82% on the stock market.

Bharat Petroleum Corporation Ltd (BPCL), one of India's leading oil marketing companies, is evaluating the establishment of a greenfield refinery-cum-petrochemical complex near Ramayapatnam Port in Andhra Pradesh. This strategic move was unveiled during BPCL's 72nd Annual General Meeting (AGM), as the company charts an ambitious course for expansion and sustainability.

Greenfield Refinery Project

The proposed facility in Andhra Pradesh is expected to be a 9 million tonnes per year unit with an estimated cost of Rs 95,000.00 crore. This significant investment aligns with BPCL's vision to expand its petrochemical portfolio and contribute to India's goal of becoming a global refining and petrochemical hub. Pre-project activities for this strategic investment are already underway, signaling BPCL's commitment to bolstering India's energy infrastructure.

Expansion and Investment Strategy

BPCL's Chairman and Managing Director, Sanjay Khanna, highlighted the company's multi-year capital expenditure cycle during the AGM. Key developments include:

• A major upgrade of the Mumbai Refinery, replacing existing units with a state-of-the-art Petro Resid Fluidized Catalytic Cracking Unit (PRFCC) at an investment of Rs 14,200.00 crore.
• Two significant petrochemical projects at Bina and Kochi, with a combined capital investment of Rs 54,000.00 crore, progressing on schedule.
• Securing a Rs 31,802.00 crore loan agreement with the State Bank of India Consortium for the Bina project, marking the largest in BPCL's history.

Operational Highlights

The company reported robust performance:

• Achieved the highest crude throughput of 40.5 MMTPA across its refineries.
• Recorded market sales of 52.4 MMT, maintaining its position as the second-largest PSU OMC with a 27.44% market share.
• Posted a standalone net profit of Rs 13,275.00 crore, the highest among PSU oil marketing companies.
• Attained the highest-ever capital expenditure of Rs 16,967.00 crore, a 45% increase over the previous year.

Focus on Sustainability and Green Energy

BPCL reaffirmed its commitment to sustainability and green energy initiatives:

• Aims to achieve Net Zero Scope 1 and Scope 2 greenhouse gas emissions by 2040.
• Plans to build a renewable energy portfolio of 10 GW by 2035.
• Commissioned a 5 MW electrolyzer unit for green hydrogen at Bina Refinery.
• Increased ethanol blending to 16.35%, nearing the 20% national target.

Financial Performance and Shareholder Returns

The company's financial performance remained strong:

• Turnover exceeded Rs 5 lakh crore.
• The Board recommended a final dividend of Rs 5.00 per share, bringing the total dividend for the year to Rs 10.00 per share.

Future Outlook

As BPCL enters its golden jubilee year, the company is poised for transformative growth. The proposed Andhra Pradesh refinery, along with ongoing projects and green initiatives, underscores BPCL's commitment to energizing India's future while aligning with the nation's vision of becoming a developed country by 2047.

Chairman Sanjay Khanna emphasized, "As we scale new horizons across business segments, we are strengthening our workforce through the largest talent induction in recent years. Every rupee of capex is a promise, and timely commissioning is how we honour it."

With these strategic moves, BPCL is not only expanding its operational capabilities but also positioning itself as a key player in India's energy transition and economic growth story.