New Delhi: Hindustan Petroleum Corporation Limited (HPCL) on Monday announced the commissioning of a state-of-the-art Residue Upgradation Facility (RUF) at its Visakhapatnam refinery, marking a significant milestone in India’s refining sector. The new facility is designed to enhance the refinery’s deep-conversion capability, increase distillate yields, and improve profitability by processing heavier and opportunity crudes efficiently.
India’s First Residue Hydrocracking Unit and World’s First LC-Max Unit
The 3.55 million tonnes-per-year facility features India’s first residue hydrocracking unit and the world’s first LC-Max unit, which can convert approximately 93 percent of low-value bottom-of-the-barrel oils into high-value petroleum products. This breakthrough technology significantly enhances HPCL’s ability to produce middle-distillates such as diesel, jet fuel, and gasoil while reducing dependence on imported fuels.
According to HPCL, the RUF will increase distillate yields by up to 10 percent over pre-modernization levels and improve gross refining margins through a superior product slate and greater flexibility in processing heavier crudes. The facility also contributes to lowering operational costs and energy intensity, aligning with the company’s sustainability goals.
Digital Optimisation and Operational Efficiency
The commissioning is complemented by a digital optimisation suite for the LC-Max unit, which integrates real-time monitoring, predictive analytics, and AI-driven process control. This ensures operational stability, enhances on-stream performance, and improves yields, while strengthening supply-chain resilience by reducing the gap between HPCL’s diesel marketing and refining volumes.
Project Execution and Collaboration
Engineers India Ltd (EIL) served as the project management consultant, providing end-to-end engineering and PMC services for the 3.55 million tonnes-per-year facility. Larsen & Toubro executed the project as the engineering, procurement, and construction (EPC) contractor. Several critical equipment components, including three LC-Max reactors weighing approximately 2,200 tonnes each, were manufactured domestically under the government’s Aatmanirbhar Bharat initiative, making this facility a benchmark in technological scale and complexity globally.
EIL stated that the project represents one of the most complex residue-processing units commissioned worldwide, achieving global recognition in refining technology and setting a new standard for residue upgradation facilities.
Enhancing India’s Refining Competitiveness
The RUF significantly raises the Nelson Complexity Index of the Visakhapatnam refinery to 11.6, positioning it among the most advanced deep-conversion refineries in India. The enhanced middle-distillate output, superior refining margins, and high-value product slate are expected to strengthen HPCL’s overall refining competitiveness and support long-term growth in both domestic and international markets.
About HPCL
Hindustan Petroleum Corporation Limited (HPCL) is a Government of India-owned public sector undertaking and one of the country’s leading oil refining and marketing companies. Known for operational excellence, technological innovation, and customer-centric strategies, HPCL continues to drive India’s energy security while advancing sustainable and high-value refining practices.
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