HPCL's Vizag Refinery Upgrade Boosts Output, Profitability

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AuthorKavya Nair|Published at:
HPCL's Vizag Refinery Upgrade Boosts Output, Profitability
Overview

Hindustan Petroleum Corporation Ltd has commissioned a 3.55 million tonnes-per-year residue upgradation facility at its Visakhapatnam refinery. Featuring India's first residue hydrocracking and world's first LC-Max units, it significantly enhances deep-conversion capability, boosting distillate yields by up to 10% and improving gross refining margins, while reducing dependence on imported fuels.

HPCL Commissions Major Refinery Upgrade

Hindustan Petroleum Corporation Ltd (HPCL) commissioned a significant residue upgradation facility (RUF) at its Visakhapatnam refinery on Monday, enhancing its deep-conversion capabilities and boosting distillate output and profitability.

Enhanced Processing Capability

The new 3.55 million tonnes-per-year facility includes India's first residue hydrocracking unit and the world's first LC-Max unit. This technological marvel is designed to convert approximately 93% of low-value bottom-of-the-barrel oils into high-value petroleum products, marking a substantial step in upgrading India's refining complexity.

Financial and Strategic Gains

HPCL stated the unit will raise distillate yields at the Visakh refinery by up to 10% and substantially improve gross refining margins. This improvement stems from the flexibility to process heavier and opportunity crudes, alongside a superior product slate, driving higher profitability and strengthening supply chain resilience. The move also narrows the gap between HPCL's diesel marketing and refining volumes.

Technological Milestones

Following the Visakh Refinery Modernisation Project, the commissioning lifts the refinery's Nelson Complexity Index to 11.6, positioning it among India's most advanced deep-conversion refineries. The facility features three LC-Max reactors, each weighing about 2,200 tonnes, underscoring its global scale and complexity. Engineers India Ltd (EIL) provided project management consultancy, while Larsen & Toubro served as the EPC contractor.

Sustainability and Digitalization

Improved heat integration and process efficiency have reduced the refinery's energy intensity, lowering operating costs and supporting sustainability goals. HPCL has also deployed a digital optimisation suite, integrating real-time monitoring and AI-driven analytics for enhanced operational performance and yields.

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