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News	Kokel, Nicolas Rajasthan Refinery 2025/05/26 02:15 PM HPCL Set to Commission Crude Unit at 9-MMTPA Rajasthan Refinery in October 2025 View Main Message 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. #india #rajasthan #refinery #refining #crudeoil #rajasthancrude #hpcl #axens #lummus
Messages	Kokel, Nicolas Message 2024/11/13 10:33 AM Petrochemical investments in India: planned but a herd mentality poses risks View Main Message Picture: Indian subcontinent refineries, via ppPLUS India’s dependence on imports to meet its requirements of basic petrochemicals, including polymers, is only expected to rise, despite projects – under implementation and on the drawing boards. This is partly because the historical baggage of poor capacity builds will take time to catch up with rising demand. In the last few years, however, India’s public sector refiners have climbed on the petrochemicals bandwagon, seeking value-added outlets for refinery streams. They have invested in aromatics (for feeding the polyester value chain), propylene (for polypropylene, PP, and some other chemicals notably, oxo-alcohols and acrylate monomers), linear alkyl benzene (LAB), a key detergent raw material, and a few other projects. And more are to come in the near-term. There are several commonalities amongst the firm projects. For one, the emphasis seems to be on building the C3 (propylene) value chain. This is not surprising as FCC propylene offers a simple, low-cost route to the olefin and one that can be conveniently retrofitted into existing refinery operations. There is also an overwhelming emphasis on PP production, which may not be wise, as it runs the risk of overbuild should demand growth not pan out as anticipated. There are other propylene derivatives that can be considered, and these merit attention if not by the refiners themselves then by third party investors for whom it will be more worthwhile. Much will hinge on the commercials of the olefin supply arrangement, but such business models are widely followed, including here in India, let alone in other countries. Importantly, the government needs to recognise that the chemical industry as a key enabler of modern living, and not a nuisance to be constrained through regulation and red-tape. The priority must be on developing well-developed clusters where not just the petrochemical industry, but also the broad chemical industry – including the fine and specialty chemical industries, wherein India’s competitiveness is well recognised – can locate and start operations in double-quick time. Clusters are efficient and safe locales where the industry can thrive, as several countries have amply shown. India needs a much larger and more diversified chemical industry than it has now. The former it seems is happening. Not so sure of the latter. The herd mentality to investments needs to change. Those who have dared to do so – and there are a few examples – have been amply rewarded. More need to emulate, not imitate, them! Ravi Raghavan, 12 Nov 2024, Linkedin post. #india #petrochemicals #chemicals #valuechains #propylene #fcc #refinery #polyester #aromatics #olefins #polypropylene #acrylics #lab #chemicalindustry #indianchemicals #IOCL #BPCL #HPCL #RelianceIndustries #investment #specialitychemicals #finechemicals #oilrefining #polymers #ethylene #competitiveness

Kokel, Nicolas

Rajasthan Refinery

2025/05/26 02:15 PM

HPCL Set to Commission Crude Unit at 9-MMTPA Rajasthan Refinery in October 2025

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.

#india #rajasthan #refinery #refining #crudeoil #rajasthancrude #hpcl #axens #lummus

Kokel, Nicolas

Message

2024/11/13 10:33 AM

Petrochemical investments in India: planned but a herd mentality poses risks

Picture: Indian subcontinent refineries, via ppPLUS

India’s dependence on imports to meet its requirements of basic petrochemicals, including polymers, is only expected to rise, despite projects – under implementation and on the drawing boards. This is partly because the historical baggage of poor capacity builds will take time to catch up with rising demand.

In the last few years, however, India’s public sector refiners have climbed on the petrochemicals bandwagon, seeking value-added outlets for refinery streams. They have invested in aromatics (for feeding the polyester value chain), propylene (for polypropylene, PP, and some other chemicals notably, oxo-alcohols and acrylate monomers), linear alkyl benzene (LAB), a key detergent raw material, and a few other projects. And more are to come in the near-term.

There are several commonalities amongst the firm projects. For one, the emphasis seems to be on building the C3 (propylene) value chain. This is not surprising as FCC propylene offers a simple, low-cost route to the olefin and one that can be conveniently retrofitted into existing refinery operations. There is also an overwhelming emphasis on PP production, which may not be wise, as it runs the risk of overbuild should demand growth not pan out as anticipated.

There are other propylene derivatives that can be considered, and these merit attention if not by the refiners themselves then by third party investors for whom it will be more worthwhile. Much will hinge on the commercials of the olefin supply arrangement, but such business models are widely followed, including here in India, let alone in other countries.

Importantly, the government needs to recognise that the chemical industry as a key enabler of modern living, and not a nuisance to be constrained through regulation and red-tape. The priority must be on developing well-developed clusters where not just the petrochemical industry, but also the broad chemical industry – including the fine and specialty chemical industries, wherein India’s competitiveness is well recognised – can locate and start operations in double-quick time. Clusters are efficient and safe locales where the industry can thrive, as several countries have amply shown.

India needs a much larger and more diversified chemical industry than it has now. The former it seems is happening. Not so sure of the latter. The herd mentality to investments needs to change. Those who have dared to do so – and there are a few examples – have been amply rewarded. More need to emulate, not imitate, them!

Ravi Raghavan, 12 Nov 2024, Linkedin post.

#india #petrochemicals #chemicals #valuechains #propylene #fcc #refinery #polyester #aromatics #olefins #polypropylene #acrylics #lab #chemicalindustry #indianchemicals #IOCL #BPCL #HPCL #RelianceIndustries #investment #specialitychemicals #finechemicals #oilrefining #polymers #ethylene #competitiveness

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