BPCL's Strategic Investments in Natural Gas and Green Energy
Key Ideas
  • BPCL to invest ₹25,000 crore in natural gas business, focusing on LNG infrastructure and city gas distribution to increase gas portfolio share from 4% to 8-9%.
  • Establishing 10 new LNG stations and signing a supply agreement with ADNOC for 0.45 MTPA to meet rising demand for cleaner fuels, supporting India's energy requirements.
  • Exploring opportunities in green hydrogen with two pilot projects underway, preparing for future investments once costs reduce to $2.5-3 per kg, aligning with India's energy goals.
  • BPCL's strategy aims to increase natural gas share in India's energy mix from 6% to 15%, supporting the country's energy transition and reducing reliance on traditional fossil fuels.
State-run Bharat Petroleum Corporation Limited (BPCL) in India is strategically expanding its natural gas presence by investing ₹25,000 crore in its gas business, with a focus on city gas distribution (CGD) and LNG infrastructure. The company aims to double its gas portfolio share from 4% to around 8-9% in the near future. BPCL is set to establish 10 new liquefied natural gas (LNG) stations and enter a five-year supply agreement with Abu Dhabi National Oil Company (ADNOC) for 0.45 million tonnes per annum (MTPA) to meet the increasing demand for cleaner fuels, particularly during India Energy Week 2025. In addition to LNG initiatives, BPCL is exploring green hydrogen opportunities. While acknowledging the current high cost of green hydrogen, the company is actively working on two pilot projects and plans to scale up investments once the cost per kilogram decreases to $2.5-3. By positioning itself for the future with green energy solutions, BPCL aligns its goals with India's overarching plan to raise the natural gas share in the energy mix from 6% to 15% in the coming years, contributing to the country's energy transition and reducing its reliance on conventional fossil fuels.
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