As India prepares to commission its first greenfield integrated refinery complex in nearly a decade, focus has shifted to medium sour crude grades such as Russia’s Urals and Iraq’s Basrah.
The HPCL Rajasthan Refinery (HRRL), an ambitious project with a refining capacity of nine million tons per annum (MTPA), is in its final stages of construction in Pachpadra, Balotra district, Rajasthan. Certain units of the complex have already entered pre-commissioning, signaling imminent operations.
Strategic Partnership and Growing Demand
Jointly developed by Hindustan Petroleum Corporation (HPCL) and the Rajasthan government, HRRL reflects a 74:26 equity split between the partners. The refinery’s launch comes at a crucial time, with India projected to surpass China in oil demand growth.
Abhishek Ranjan, South Asia oil research lead at S&P Global Commodity Insights, highlighted the refinery’s unique configuration, which will process over 83% imported medium-grade crude and the rest from domestic sources.
“Russian Urals will likely be a preferred choice,” he stated, while also emphasizing the need for diversification to address potential supply constraints.
Arabian and Basrah grades rank among the top alternatives for HRRL.
Advanced Configuration for Heavy Crude Processing
HRRL’s design includes advanced units such as large vacuum distillation, delayed coking, and petro-fluid catalytic cracking.
These configurations equip the refinery to process heavier crudes efficiently, offering flexibility in crude sourcing.
The Challenges
HPCL rajasthan refinery project has faced challenges, including cost escalation due to rising commodity prices, expanded project scope, and delays caused by pandemic lockdowns.
Despite these hurdles, HRRL remains on track to produce Euro 6-grade diesel, gasoline, and value-added petrochemicals such as polypropylene, butadiene, polyethylene, benzene, and toluene.
Filling Northern India’s Supply Gap
The refinery’s strategic location will address the refined oil product deficit in northern India, a demand-intensive region.
“The Rajasthan refinery will play a critical role in balancing supply and demand in northern India,” said Ranjan.
First Standalone Refinery Since Paradip
HRRL will be the first standalone refinery commissioned in India since the Paradip refinery, operated by Indian Oil Corporation, began operations in 2016.
While expansions have dominated the sector since then, HRRL marks a significant milestone as a new, independent facility.
As reported by thehindubusinessline.com, as HRRL gears up for commissioning, it stands poised to redefine India’s refining landscape, reflecting a blend of innovation, strategy, and resilience.
