Bharat Petroleum Corporation Limited (BPCL), a state-owned energy giant, has finalized a five-year term contract with Abu Dhabi National Oil Company (ADNOC) for the supply of liquefied natural gas (LNG), commencing in fiscal year 2026. The company’s Director-Finance Rama Krishna Gupta unveiled the plans at the India Energy Week conference organized at Delhi last week as reported by Financial Express.

This deal will bolster India's energy security and provide a stable source of natural gas for BPCL's growing operations.

Beyond securing LNG, BPCL is aggressively pursuing exploration and production projects overseas, particularly in Brazil and Mozambique. Gupta revealed that exploration in Brazil is complete, and said, “We are expecting that the tender will be closed in June and July. We also expect the force majeure in Mozambique to be lifted soon and resume exploration and production operations there.” These international ventures highlight BPCL's focus on expanding its upstream portfolio and securing access to valuable resources.

BPCL's ambitious expansion plans extend to its refining and petrochemical businesses. The company has earmarked a substantial capital expenditure (capex) of Rs 1.7 lakh crore over the next five fiscal years, starting FY25. A significant portion of this investment, approximately Rs 75,000 crore, will be directed towards petrochemical projects and refinery capacity expansion. BPCL aims to significantly increase the contribution of its petrochemical business to 7-8% from the current level of less than 2%.

A key component of this strategy is the integration of refineries with petrochemical complexes. The Bina refinery expansion project, with a capital outlay of Rs 50,000 crore, exemplifies this approach. BPCL is also exploring the development of a new integrated refinery and petrochemical complex in Andhra Pradesh. These integrated facilities will enable the company to maximize value addition and capitalize on the growing demand for petrochemical products.

In addition to petrochemicals, BPCL is investing approximately Rs 25,000 crore in city gas distribution and gas infrastructure development. This investment will strengthen the company's presence in the downstream gas market and contribute to the expansion of the gas network across the country. Another Rs 25,000 crore is allocated for exploration projects in Mozambique and Brazil, while Rs 10,000 crore will be channeled into the renewable energy sector, demonstrating BPCL's commitment to a diversified and sustainable energy portfolio.

BPCL is actively diversifying into renewable energy, establishing a 50:50 joint venture to create 3.5-4 gigawatts of green energy assets. The company is also exploring biofuel production through a joint venture with GPS Renewables and investigating coal gasification projects with Coal India. The coal gasification project, planned near Chandrapur, Maharashtra, aims to convert coal to syngas and subsequently to natural gas.