Whalesbook
Hindustan Petroleum Corporation Ltd (HPCL) has commissioned a new residue upgradation facility (RUF) at its Visakhapatnam refinery, significantly boosting the plant's deep-conversion capability, distillate output, and profitability.
The 3.55 million tonnes-per-year facility incorporates India's first residue hydrocracking unit and the world's first LC-Max unit. This advanced setup is capable of converting approximately 93 percent of low-value bottom-of-the-barrel oils into higher-value petroleum products.
Enhanced Output and Margins
HPCL announced that the new unit will increase distillate yields at the Visakh refinery by up to 10 percent from pre-modernisation levels. Substantially improved gross refining margins are anticipated due to the processing of heavier and opportunity crudes, along with a superior product slate.
Refining Complexity and Self-Reliance
Following the Visakh Refinery Modernisation Project, the refinery's Nelson Complexity Index has risen to 11.6, positioning it among India's most advanced deep-conversion refineries. This upgrade marks a significant step in enhancing India's refining complexity and reducing dependence on imported fuels.
The project's execution involved the domestic manufacturing of several critical equipment components, aligning with the government's 'Aatmanirbhar Bharat' self-reliance initiative. Engineers India Ltd (EIL) provided project management consultancy, while Larsen & Toubro served as the EPC contractor, with the LC-Max reactors being among the heaviest globally.
Digital Integration and Sustainability
Beyond the physical commissioning, HPCL has deployed a digital optimisation suite utilizing real-time monitoring, predictive analytics, and AI-driven optimisation for the LC-Max unit. Improved heat integration and process efficiency have also reduced the refinery's energy intensity, supporting sustainability goals and lowering operating costs.