India is poised to commission its first greenfield refinery integrated refinery complex in nearly ten years, with the HPCL Rajasthan Refinery Ltd. (HRRL) set to play a key role in boosting the country’s crude oil processing capacity.
The refinery, located in Pachpadra, Rajasthan, is expected to generate up to nine million metric tons (mt) of incremental annual crude demand.
With pre-commissioning activities underway for several units, the first greenfield refinery is set to begin operations soon.
Joint Venture with Strong Stakeholder Support
The HRRL refinery is a joint venture between Hindustan Petroleum Corporation Ltd. (HPCL) and the Rajasthan government, with equity stakes of 74% and 26%, respectively.
Designed to process predominantly imported medium-grade crude, the refinery will rely on a combination of Russian Urals, Arabian, and Basrah crude grades, complemented by domestic crude.
According to Abhishek Ranjan, South Asia oil research lead at S&P Global Commodity Insights, the crude varieties will form the foundation of the refinery’s operations.
Advanced Technology for Heavy Crude Processing
The refinery’s configuration includes state-of-the-art units such as vacuum distillation, delayed coker, and petro-fluid catalytic cracking.
The technologies are tailored to handle heavier crude grades, ensuring the refinery can efficiently process a diverse range of crude oil types.
This capability enhances the refinery’s ability to meet the demand for refined products in northern India, which faces a net deficit in supply.
Primary Products and Market Focus
HRRL’s primary output will include Euro 6-grade diesel, gasoline, and key petrochemical products like polypropylene, butadiene, and polyethylene.
The refinery’s strategic location and advanced refining capacity make it a critical asset for northern India. In this region, refined product demand exceeds local supply.
Overcoming Challenges and Delays
Incorporated in 2013, HRRL has faced significant delays due to pandemic-related disruptions and rising commodity prices.
The challenges have contributed to cost escalations.
The HRRL refinery marks a milestone as India’s first standalone refinery. It follows the Indian Oil Corporation’s Paradip Refinery. They commissioned it in 2016 with a capacity of 15 million mt/year, despite these setbacks.
Energy Security and Economic Growth
The Rajasthan refinery will play a pivotal role in meeting India’s growing oil demand. It experts project will surpass China’s.
As the country’s energy needs rise, HRRL’s operations will strengthen India’s energy security. They will also contribute to long-term economic growth.
India plans to launch a National Critical Mineral Mission. The initiative aims to improve the supply chain for essential resources and reduce dependence on imports.
As reported by energy.economictimes.indiatimes.com, the HPCL Rajasthan Refinery Ltd. is a significant step forward for India’s refining capabilities. It is also a critical component in the country’s energy future.
