HPCL Rajasthan Refinery. Credit: TATA PROJECTS

India’s Largest Greenfield Refinery-Cum-Petrochemical Complex Advances Toward Operational Milestone.

Hindustan Petroleum Corporation Limited (HPCL) is poised to commence crude oil processing at its 9 million metric tons per annum (MMTPA) Rajasthan refinery in October 2025, marking a critical step in India’s push for energy self-sufficiency. The greenfield refinery-cum-petrochemical complex, located in Pachpadra, Barmer, will be the country’s first new integrated facility in nearly a decade and a cornerstone of its strategy to meet rising fuel and petrochemical demand.

Project Progress and Timeline

• Physical Completion: 82% as of September 2024, with crude pipelines nearing 94% completion.
• Crude Unit Start: October 2025, with phased commissioning of downstream units to follow.
• Full Operations: Expected by December 2025, ramping up to 80% capacity by year-end and full utilization by 2027.
• Petrochemical Integration: Polypropylene, LLDPE, and HDPE units to begin operations in early 2026, three months after refinery startup.

Strategic Configuration and Technology

• Crude Flexibility: Processes a mix of indigenous Rajasthan crude (1.5 MMTPA) and imported Arab medium/heavy grades (7.5 MMTPA), shifting to 100% imported crude after eight years.
• Key Units:
  • Crude Distillation Unit (CDU): 9.0 MMTPA
  • Delayed Coker Unit (DCU): 2.4 MMTPA
  • Petrochemical Fluidized Catalytic Cracking Unit (PFCCU): 2.9 MMTPA
  • Polypropylene Units: 2 x 490 KTPA (Lummus Novolen technology).
• Licensors: Axens (naphtha hydrotreating, isomerization) and Lummus (polypropylene reactors).

Economic and Environmental Impact

• Investment: ₹72,937 crore ($8.8 billion), with ₹48,625 crore secured via consortium financing.
• Employment: Generated over 50,000 jobs during construction, with 10,000 permanent roles post-commissioning.
• Sustainability: BS-VI compliant fuels, CO₂ recovery systems, and a 17,000-tree plantation drive to combat desertification.
• Market Role: Addresses northern India’s fuel deficit, reducing reliance on imports and positioning India to surpass China in oil demand growth by 2027.

Challenges and Delays

Originally conceptualized in 2013, the project faced delays due to pandemic disruptions, logistical hurdles, and cost escalations. Revised timelines now align with India’s goal to expand refining capacity to 450 MMTPA by 2030.

Future Expansion

HPCL plans to double the refinery’s capacity to 18 MMTPA, leveraging its modular design and existing infrastructure. The expansion will further integrate petrochemical production, targeting 2 MMTPA of specialty chemicals by 2030.

Outlook

The Rajasthan refinery underscores India’s ambition to balance fuel production with high-value petrochemicals, positioning the country as a global refining hub. With commissioning on the horizon, all eyes are on HPCL to deliver a project that could redefine Asia’s energy landscape.

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