Hindustan Petroleum Corporation Limited (HPCL) announced that its board of directors has approved a significant modernization project for its Mumbai refinery.
The initiative aims to enhance production capacity, improve output quality, and modernize operations with a total investment of ₹4,679 crore.
Increased Production Capacity for Lube Oil Base Stocks
The modernization project focuses on increasing the production of lube oil base stocks (LOBS).
HPCL plans to boost output from the current 475 kilotonnes per annum (KTPA) to an impressive 764 KTPA.
The upgraded facility will produce superior-grade Group II+ and Group III LOBS, marking a substantial improvement in product quality and performance.
Boost in Bitumen Production
In addition to LOBS, the project will enhance bitumen production.
HPCL will utilize fuel oil to increase bitumen output by approximately 487 KTPA. This strategic upgrade aligns with the company’s commitment to meet rising demand while optimizing resources.
Project Timeline and Investment
HPCL has set an ambitious timeline for the project.
The company plans to achieve mechanical completion within 36 months, followed by an additional three months for commissioning.
With a total investment of ₹4,679 crore, the modernization underscores HPCL’s focus on enhancing operational efficiency and product quality.
Supply Agreement with GP Petroleums
In a related development, GP Petroleums Ltd recently announced a supply agreement with HPCL.
The deal, valued at approximately ₹223 crore, involves the provision of bulk bitumen – VG30, further solidifying the partnership between the two companies.
As reported by psuconnect.in, HPCL’s modernization project is a testament to its commitment to innovation, sustainability, and meeting evolving market demands.
