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When was the Blanket PO created?
Has the extractor and Loader Program run after creating the BPO? (This program makes the lines on BPO available in iProcurement).
Is your Blanket Agreement approved and its terms dates current? If the BPA has expired or future dated, it will not show up in the item details on the search in iProcurement. It is very much possible to generate not only releases, but also carry them all the way to their approval. You need to define a BPA. Then create an Approved Supplier List, Sourcing Rules and Assign them to the default assignment set.
Subsequently when the user selects an item referencing that BPA in the iProcurment and creates a requisition, the release will automatically get generated if you define the Release Method on the ASL to 'Automatic Release'. The only condition is that the Buyer on the BPA needs to have sufficient approval authority to approve the release generate out of the requisition.
Hope this helps.
It is not possible to create releases in iProcurement. iProcurement is meant for creating Requisition only. If you want to create releases for a BPA, you have to do in core purchasing responsibility.