HPCL mulls to raise Vizag oil refinery capacity by 20% to meet growing fuel demand
HPCL is set to launch a diesel hydro desulphurizer with a capacity of 2.6 million metric tonnes per year.
HPCL mulls to raise Vizag oil refinery capacity by 20% to meet growing fuel demand
To meet the rising demand for fuel in the region, Hindustan Petroleum (HPCL), an oil PSU company, intends to expand the capacity of its Vizag oil refinery in southern India by up to 20%, according to Rajneesh Narang, chairman of the company.
India is raising its crude processing capacity as the world's third-largest oil importer, and consumers want to be a major global refining hub while its fuel demand is expected to continue growing for the next decade. HPCL recently expanded the capacity of the Vizag refinery to 300,000 barrels per day and is looking for a further increase.
The company is expected to soon start operations at the Vizag refinery's new secondary units, including a 3.5 million-tonne-per-year (tpy) residue upgrading unit to boost its distillate yield by 10% and improve its gross refining margin (GRM) by $3 per barrel.
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HPCL is set to launch a diesel hydro desulphurizer with a capacity of 2.6 million metric tonnes per year. As India's economy expands, its fuel demand is expected to increase; however, more motorists are leaning towards electric vehicles, and industries are transitioning from diesel-generated electricity to renewable energy sources to reduce their carbon footprints.
To future-proof its facilities, HPCL is also constructing a petrochemical plant at its Barmer refinery, which has a capacity of 180,000 barrels per day and is located in the desert state of Rajasthan.
This refinery is notable for having India's highest petrochemical intensity, with 26% of the crude oil being converted into chemicals. While crude processing at the Barmer refinery is scheduled to begin in June or July, the petrochemical project is anticipated to begin operations by December, according to Narang.
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HPCL also operates a 190,000 bpd Mumbai refinery in western India. The company imports about 21 million metric tonnes of crude annually, with about 8 million to 9 million metric tonnes procured from the spot markets, Narang said.
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