Metro India News | NEW DELHI

Hindustan Petroleum Corporation Ltd (HPCL) has commissioned a major residue upgradation facility (RUF) at its Visakhapatnam refinery, significantly boosting fuel output, refining margins and the plant’s ability to process heavier crude oils.

The 3.55 million tonnes-per-year facility includes India’s first residue hydrocracking unit and the world’s first LC-Max unit. The new complex can convert nearly 93 per cent of low-value, bottom-of-the-barrel residues into high-value petroleum products, marking a key step in enhancing India’s refining depth and reducing reliance on imported fuels.

HPCL said the commissioning follows the Visakh Refinery Modernisation Project and lifts the refinery’s Nelson Complexity Index to 11.6, placing it among the most advanced deep-conversion refineries in the country. With the new unit, distillate yields at the refinery are expected to rise by up to 10 per cent compared with pre-modernisation levels.

The company said gross refining margins are set to improve substantially due to a superior product mix, greater flexibility to process heavier and opportunity crudes, and higher value realisation per barrel. The higher middle-distillate output will also help narrow the gap between HPCL’s diesel marketing and refining volumes, lowering dependence on external sourcing and strengthening supply-chain resilience.

The facility houses three LC-Max reactors, each weighing about 2,200 tonnes, among the heaviest such reactors globally. HPCL said several critical components were manufactured domestically, supporting the government’s Aatmanirbhar Bharat initiative. Improved heat integration and process efficiency are expected to reduce energy intensity and operating costs.

Engineers India Ltd (EIL), which provided project management consultancy services, said the LC-Max-based RUF sets a global benchmark for scale and technological complexity. Larsen & Toubro executed the project as the EPC contractor, completing one of the most complex residue-processing facilities commissioned worldwide.