To cater to India's ever-growing fuel consumption, Hindustan Petroleum Corporation Ltd, the state-owned company, plans a massive expansion at its southern Indian Vizag refinery. The refinery is to be upgraded by 20% capacity in the process. The company intends to add that much to its refining capacity, with India gradually cementing its position as the world's most significant refining center.
HPCL Chairman Rajneesh Narang, speaking at the India Energy Week conference, revealed the company’s plans. "We are exploring raising the (annual) capacity by 2-3 million (metric) tons (40,000-60,000 bpd). We have to take a board approval for this," he stated.
HPCL recently expanded the Vizag refinery to 300,000 bpd. The company is likely to commission new secondary units, including a residue upgrade unit with a 3.5 million tpy capacity. This will improve its distillate yield by 10% and enhance GRM by $3 per barrel. A 2.6 million tpy diesel hydro desulphurize will be in operation shortly.
In addition, HPCL is developing a petrochemical plant at its Barmer refinery in Rajasthan. This refinery is expected to start crude oil refining process by mid-2024 and would have the highest petrochemical intensity in India, at 26%.
To optimize crude procurement, HPCL also set up a trading desk to negotiate better deals and reduce dependence on tenders. The company imports around 21 million tons of crude every year, with significant procurement occurring in spot markets. As India's energy landscape continues to change, HPCL's expansion plans reveal its commitment to refining efficiency and long-term sustainability.
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