Jan 06, 2026 (MarketLine via COMTEX) --
The newly commissioned unit has a capacity of 3.55mtpa and utilises advanced LC-Max-based residue hydrocracking technology.
Hindustan Petroleum Corporation (HPCL) has announced the official start of operations at the residue upgradation facility (RUF) at its Visakh Refinery in the southern Indian state of Andhra Pradesh.
The newly commissioned facility has a capacity of 3.55 million tonnes per annum (mtpa). It employs advanced LC-Max-based residue hydrocracking technology, allowing for the conversion of approximately 93% of low-value oils into high-value petroleum products.
The project includes India's first residue hydrocracking unit and the first global deployment of LC-Max technology at such a scale.
The residue upgradation facility is set to enhance the refinery's distillate yield by up to 10%, consequently improving the gross refining margins due to a more valuable product mix and the ability to process a wider range of heavier crude oils.
As a result, HPCL expects to decrease its reliance on imported fuels while strengthening its supply chain and increasing profitability through improved margins.
This advancement follows the Visakh Refinery modernisation project, elevating the facility's Nelson Complexity Index to 11.6.
Originally commissioned in 1957 by Caltex Oil Refining (India), Visakh Refinery became part of HPCL following its acquisition by the Indian Government in 1976.
Since then, it has undergone multiple expansions, increasing its capacity from an initial 675,000 tonnes per annum (tpa) to 8.3mtpa by 2010.
Engineers India (EIL) served as the project management consultant for the residue upgradation facility, delivering management and engineering services throughout the project's life cycle.
Meanwhile, Larsen & Toubro acted as the engineering, procurement and construction contractor for the project.
The deployment of LC-Max technology at this facility not only boosts refinery margins and complexity but also aligns with India's rising energy requirements.
Last year, in August, HPCL signed a heads of agreement with an ADNOC Gas subsidiary for the procurement of 500,000tpa of liquefied natural gas over a period of ten years.
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COMTEX_471829735/2227/2026-01-06T15:52:33
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