Expansion of HPCL Refining Capacities in India

Hindustan Petroleum Corporation Limited (HPCL), one of India's leading state-owned oil companies, has announced plans to increase the capacity of its oil refinery in Visakhapatnam, located in the southern part of the country. This move is driven by the rapidly growing demand for fuel in the region, as explained by the company's chairman, Rajnish Narang.

India is actively enhancing its oil refining capacities. The country ranks third worldwide in oil import and consumption and aims to become a global refining hub. It is anticipated that fuel demand will continue to rise over the next decade, necessitating upgrades and expansions of existing capacities.

Currently, HPCL has already increased the capacity of its Visakhapatnam refinery to 300,000 barrels per day. However, the company requires more resources to meet future demands:

The proposal includes increasing the annual production capacity of the refinery by 2–3 million metric tonnes (approximately 40,000–60,000 barrels per day). Rajnish Narang noted that board approval is needed to implement these plans.

New Installations and Performance Improvements

HPCL plans to introduce several new installations to enhance refining efficiency:

- Secondary units, including a residue upgrading facility with a capacity of 3.5 million tonnes per year, will soon be operational. This will increase distillate yield by 10% and improve the gross refining margin (GRM) by $3 per barrel.

- A diesel hydrotreater with a capacity of 2.6 million tonnes per year will also be commissioned.

HPCL's current and planned actions highlight the strategic importance of India in the global oil market. Expanding capacity and implementing new technologies are aimed at strengthening the country's position as one of the leading refining hubs.