New Delhi: Hindustan Petroleum Corporation Limited (HPCL) has successfully commissioned a Residue Upgradation Facility (RUF) at its 15 MMTPA Visakh Refinery, marking a significant technological milestone for India’s refining sector. The new unit, with a capacity of 3.55 MMTPA, employs the world’s first LC-Max based residue hydrocracking technology, enabling the conversion of nearly 93% of bottom oils into high-value petroleum products.
Boost to Distillate Output and Refining Efficiency
With the commissioning of the RUF, HPCL expects the refinery’s distillate yield to rise by up to 10% from pre-expansion levels. The facility will enhance the refinery’s ability to process heavier and opportunity crudes, improving product quality and operational efficiency.
The higher production of middle-distillates such as diesel and kerosene will help HPCL narrow the gap between its diesel marketing and refining volumes, reduce dependence on external sourcing, and strengthen supply chain efficiency.
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Improved Margins and Refinery Complexity
HPCL stated that the RUF will significantly improve the refinery’s Gross Refining Margins (GRMs) due to a superior product mix and higher value realization per barrel. The refinery’s Nelson Complexity Index has increased to 11.6, placing Visakh Refinery among India’s most advanced deep-conversion refineries.
The facility is equipped with the LC-Max Digital Suite, which allows optimized operations, improved yield control, and long-term margin management, reinforcing HPCL’s focus on operational excellence and technological innovation.
Strategic Significance
The new residue upgradation unit not only strengthens HPCL’s refining capabilities but also enhances India’s refining self-sufficiency by enabling maximized conversion of low-value residues into high-value fuels, meeting growing domestic demand while improving profitability.
About HPCL
Hindustan Petroleum Corporation Limited (HPCL) is a leading public sector undertaking oil refining and marketing company in India. With a focus on advanced refining technologies, operational excellence, and sustainability, HPCL operates multiple refineries and distribution networks across the country, contributing to energy security and economic growth.
