HPCL’s Big Move: The Residue Upgradation Revolution

Hindustan Petroleum Corporation Limited (HPCL) has successfully commissioned the Residue Upgradation Facility (RUF) at its 15 million tonnes per annum (MTPA) Visakh Refinery, marking a significant step in enhancing refining efficiency and value addition.

With a processing capacity of 3.55 MTPA, the RUF employs advanced LC-Max–based residue hydrocracking technology to convert low-value residues into high-value products, achieving nearly 93 per cent coproduct yield. The new facility is expected to increase the refinery’s distillate output by up to 10 per cent compared to pre-expansion levels and substantially improve gross refining margins through a more flexible and superior product slate.

The higher production of middle distillates is also set to reduce HPCL’s reliance on external sourcing to meet high-speed diesel (HSD) demand, thereby strengthening the supply chain and supporting improved margins.

Following the commissioning of the RUF, the Nelson Complexity Index of the Visakh Refinery has risen to 11.6, placing it among India’s more complex refineries. Highlighting the operational benefits, the company said the project enhances yield control and sustained margin management, supported by the LC-Max digital suite for optimised operations.

News by Rahul Yelligetti.