HPCL commissions residue upgradation facility at Vizag refinery, boosts margins and fuel output
- IBEF
- January 6, 2026
Hindustan Petroleum Corporation Ltd. (HPCL) has launched a state-of-the-art Residue Upgradation Facility (RUF) at its Visakhapatnam refinery, a significant technological achievement for the refining industry in India. A 3.55 million tonnes-per-year facility, this RUF is home to India’s first Residue Hydrocracking Unit and boasts the world’s first ever LC-MAX unit. It has the potential to turn approximately 93% of low-value Bottom-of-the-Barrel oils into quality petroleum products. With a potential to raise distillate yields by up to 10% over pre-modernization estimates, besides methanating heavier or opportunity crudes, this facility is poised to enhance gross refining margins as well as enhance flexibility for HPCL. Nelson Complexity Index for the unit has increased to 11.6, putting it at par with one of India's most advanced deep conversion plants, thus improving India's ability to domestically produce quality petroleum products.
Aside from improved product outputs, this turnaround to a betterment project will help bridge the gap between HPCL’s sales of diesel and its refining output, thereby lessening its reliance on imported supplies. Better heat integration and process optimization have been utilized to make this reform a reality, and a digital optimization package that offers real-time monitoring and AI-based control will be used to improve this process. This project, undertaken in collaboration with Engineers India Ltd. as its project management consultant and Larsen & Toubro as its EPC contractor, will complement the Indian government’s move to achieve self-reliance through superior refinery technology, allowing HPCL to be better poised to compete.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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