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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

ONGC Petro additions Limited (OPaL) refinery.

Sep 2024

India’s Oil and Natural Gas Corporation (ONGC) is considering a major new investment in the country’s energy sector with plans for a large refinery and petrochemical complex in Uttar Pradesh. The proposed facility, which would have a capacity of 9 million tonnes per year, is estimated to require an investment of more than ₹700 billion ($8.3 billion).

According to people familiar with the discussions, ONGC has begun talks with Bharat Petroleum Corporation Ltd. (BPCL) about partnering on the project. BPCL owns a parcel of land in Prayagraj, which could be used for the refinery. Access to this land could help ONGC avoid common delays associated with land acquisition, a frequent obstacle for large infrastructure projects in India.

The move comes as India’s demand for fuels and petrochemicals continues to rise, driven by rapid economic growth and expanding industrial activity. While the country is also increasing its renewable energy capacity, the need for refined petroleum products remains strong, especially in populous states like Uttar Pradesh.

The Uttar Pradesh project is part of ONGC’s broader strategy to expand its downstream presence and tap into India’s growing energy market. If it moves forward, the refinery would not only boost local fuel supplies but also create jobs and support regional development.

BPCL is also exploring new refining projects, with both Uttar Pradesh and Andhra Pradesh under consideration. The company has hired a US-based consultant to help select the best site, and Andhra Pradesh is reportedly favored due to state-offered incentives, though Prayagraj remains a strong contender because of the available land.

ONGC and BPCL have not yet made public statements about the project, and discussions are ongoing. If approved, the new refinery could mark a significant step in meeting India’s future energy needs and strengthening the country’s refining capacity.

#ongc #bpcl #refinery #india

New Delhi – India's Oil and Natural Gas Corporation (ONGC) is actively seeking strategic partners to ensure a stable supply of ethane feedstock for its ONGC Petro additions Ltd (OPaL) petrochemical complex in Dahej, Gujarat.

ONGC has issued an expression of interest (EOI) to collaborate with companies experienced in the operation and management of very large ethane carriers (VLECs), very large gas carriers, and liquefied natural gas carriers. This initiative aims to secure the necessary infrastructure for transporting 800,000 tonnes per year of ethane, which OPaL requires from May 2028 onwards.

OPaL operates a dual-feed cracker capable of producing 1.1 million tonnes per year of ethylene and 400,000 tonnes per year of propylene. The facility relies on a mix of naphtha and C2, C3, and C4 feedstock.

ONGC's plan involves establishing a joint venture company that will handle funding and the construction of VLECs. ONGC will then charter these vessels to transport its ethane requirements.

Interested parties have until March 27th to submit their proposals.

#opal #ongc #india #vlec #steamcracker #ethane #lpg