Hindustan Petroleum Corporation Limited (HPCL) recently announced the successful initiation of a Residue Upgradation Facility (RUF) at its Visakh Refinery. The Project overseen by Mr. Vikash Kaushal, the company’s CMD is a pioneering venture incorporating the first-ever LC-Max Unit globally. It has a processing capability of 3.55 MMTPA and utilizes cutting-edge LC-Max based Residue Hydrocracking Technology. This innovation facilitates an impressive conversion rate of approximately 93% of Bottom Oils into premium products. A first of its kind, the initiative would catapault HPCL to big league. What would have otherwise been residual byproducts now gets transformed into essential high value products.
The introduction of the RUF has significantly enhanced Visakh Refinery’s operational efficiency, increasing its distillate yield by up to 10% from levels before the expansion. This enhancement is expected to boost up the Refinery’s Gross Refining Margins (GRMs) due to an improved range of products, the ability to handle a broader spectrum of heavier or alternative crudes, and a higher value per barrel of output. These advancements will enable HPCL to bridge the existing disparity between its marketing and refining volumes for High-Speed Diesel (HSD), lessen India’s reliance on external sources, fortify its supply chain, and augment profitability through better product value and margin optimization.
Furthermore, with the operationalization of the RUF, the Nelson Complexity Index of the Visakh Refinery has risen to 11.6, establishing it as one of the most sophisticated Deep-Conversion Refineries in India. The refinery now incorporates an advanced digital LC-Max suite, which enhances the operational efficiency and optimization of the complex unit, thereby maintaining controlled yields and consistent margin enhancement.
This step of HPCL will go a long way in contributing to the overall economy of the country and optimising India’s Energy Security. The HPCL venture will help the nation tide over uncertainties emanating from the current geopolitical trends and instability in the Oil & Gas sector.
