Bharat Petroleum's CEO has announced plans to build a $11 billion refinery and petrochemical project in southern India.

Bharat Petroleum plans to invest $11 billion in a refinery and petrochemical project in the southern state of Andhra Pradesh to meet rising fuel demand in the world's fastest-growing economy, the company's chief executive said, Reuters reported.

The petrochemicals sector will account for 35 percent of the project, which could cost between 900 billion and 950 billion rupees ($10.56 billion and $11.14 billion).

India is seeking to emerge as a major refining hub in global markets as Western companies reduce crude oil processing capacity to reduce carbon emissions and embrace energy transition policies.

“We feel there is a huge opportunity in the refining sector, with India’s primary energy demand set to triple to quadruple as the country’s economy develops,” said the CEO of Bharat Petroleum.

India aims to become a developed country by 2047, with a GDP of $3.8 trillion to $30 trillion from the current $3.8 trillion.

Krishnakumar said Bharat Petroleum has started pre-project work, including land acquisition, to build at least one 9 million tonne per annum refinery and an ethylene cracker unit in Andhra Pradesh.

The refiner has three refineries with a combined annual capacity of 35.3 million tonnes per annum and buys fuel from a 3 million tonne per annum refinery at Namalgarh in northeastern India.

Krishnakumar said about 80 percent of the products produced by the Andhra refinery and petrochemical complex will be sold in southern India, with automakers and package developers as its main customers.

Indian refineries are ramping up production of petrochemicals as the country's per capita consumption increases with increased production.

---

NIPNA