Hindustan Petroleum Corporation Ltd (HPCL) has commissioned a new residue upgradation facility (RUF) at its Visakhapatnam refinery, thereby improving the refining complexity and profitability at this facility.
The 3.55 million tonnes a year facility features the first residue hydrocracking unit in India and the globe’s first LC-Max unit. The cutting-edge technology has the capacity to convert 93 percent of low-quality bottom-of-the-barrel oils to high-quality petroleum products.
Optimized Output and Margins:
The newly created entity will result in an improvement of up to 10 percent of distillate production capacity over the pre-modernization levels. The gross refining margins would experience considerable enhancement because of the processing of heavier and opportunity crudes, apart from the better product mix.
Refining Complexity and Self-Reliance:
After completion of the Visakh Refinery Modernization Project, the refinery’s Nelson Complexity Index has increased to 11.6, categorizing it among the most sophisticated deep conversion refineries in India. It is a major move towards upgradation of refining complexity in India, resulting in less import-oriented fuel.
The execution of this project comprises manufacturing domestic critical components of various equipment, keeping in mind the ‘Aatmanirbhar Bharat’ initiative of self-reliance by the government. The project management consultancy service was provided by Engineers India Ltd (EIL), with Larsen & Toubro acting as the EPC contractor, and their LC-MAX reactors were among the heaviest in the world.
Digital Integration and Sustainability
Beyond the physical commissioning, HPCL has deployed a digital optimisation suite utilizing real-time monitoring, predictive analytics, and AI-driven optimisation for the LC-Max unit. Improved heat integration and process efficiency have also reduced the refinery’s energy intensity, supporting sustainability goals and lowering operating costs.
