India's HPCL to operate Vizag refinery at expanded capacity from early 2024

Hindustan Petroleum Corp Ltd (HPCL), an Indian oil company, intends to operate its 15 million metric tonnes per year (tpy) Vizag refinery at full capacity early next year. By replacing an outdated unit with a new 9 million tonnes per year crude unit in March, the state-controlled refiner increased the capacity of the Vizag facility in Southern India's crude processing from 8.33 million tonnes per year, S. Bharathan told reporters at an event.

When refineries are operating at full capacity, HPCL will be able to process fuel oil to create pricey refined goods like gasoline and gasoil, which will assist raise the company's profit margin. According to Bharathan, HPCL would commission a hydrogen unit, a sulphur recovery plant, and a 3.5 million tpy hydrocracker in two months. By the end of this year, a residual hydrocracker with a comparable capacity will also be put into operation.

The two hydrocrackers will transform bitumen and vacuum gasoil, which are heavier feedstocks, into value-added fuels including jet fuel, petrol and diesel. According to him, the residual hydrocracker will allow for the processing of around 1 million tpy of fuel, and the importation of fuel oil might start as early as the middle of 2024, "depending on."

When asked where the crude for its increased capacity came from, he responded, "Middle East, West Africa, and the U.S. are major sources, and Russia now." According to him, HPCL will be the first refinery in India to begin operating a 370 tpy electrolyser in two months. For the Vizag refinery, the electrolyser will aid in the production of green hydrogen. Additionally, HPCL runs a 9.8 million tpy refinery in Mumbai, in the state of Maharashtra in western India.