NEW DELHI, Oct 13: Hindustan Petroleum Corporation Limited (HPCL) and British oil major BP Plc. said on Thursday they planned to build a $3 billion refinery in India. The plant would have an annual capacity of at least nine million tons (180,000 barrels a day) and be located at Bhatinda in the northern state of Punjab, the companies said in a joint statement after signing a letter of intent to form a joint venture.

It would be the first project in the 50-50 partnership which would develop marketing activities and set up a retail service station network in preparation for the refinery coming on stream in 2009.

“India is one of the fastest growing energy markets in the world,” said BP chairman Lord John Browne. “This strategic partnership with HPCL marks a major step forward for us.”

BP’s chief executive refining and marketing John Manzoni signed the deal with HPCL chairman Mahesh Behari Lal.

“The strategic partnership of HPCL and BP would provide a platform for addressing India’s energy needs,” said Lal.—AFP