HPCL Gears Up for LNG Terminal Launch, Expands Refinery Operations

Hindustan Petroleum Corporation Limited (HPCL) is actively pursuing long-term liquefied natural gas (LNG) import deals as it prepares to commence operations at its 5 million ton per year (MTPA) LNG terminal in western India by the end of this year. The company aims to commission the Chhara LNG terminal in November or December, weather permitting, after facing delays due to adverse weather conditions in April.

To ensure the terminal’s smooth functioning, HPCL is constructing a breakwater to protect the harbour and is exploring the possibility of leasing excess capacity to other industry players. The imported LNG will primarily fuel the company’s existing refineries and a new 180,000 barrels per day (bpd) refinery and petrochemical complex in Rajasthan, scheduled for completion by September 2025.

In tandem with its LNG endeavours, HPCL is also expanding its refining capacity and product range. The company anticipates a $3 per barrel improvement in gross refining margins once its 300,000 bpd Vizag refinery achieves full-scale operations. Additionally, HPCL is set to enhance the production of high-value refined products at the Vizag refinery by the end of the year.

To meet the crude oil requirements for its expanding operations, HPCL plans to import Russian crude in March, increasing its reliance on Russian oil to approximately 35-40% of its total crude intake.

These strategic initiatives underscore HPCL’s commitment to strengthening its position in India’s energy landscape. By diversifying its energy portfolio and optimising its refining operations, the company aims to enhance its profitability and contribute to the nation’s energy security.

About Hindustan Petroleum Corporation Ltd

Hindustan Petroleum Corporation Ltd is mainly engaged in the business of refining crude oil and marketing petroleum products, production of hydrocarbons, as well as providing services for the management of E&P Blocks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.