HPCL Commissions Residue Upgradation Facility at Vizag Refinery

Hindustan Petroleum Corporation Limited (HPCL) has successfully commissioned the Residue Upgradation Facility at its 15 MMTPA Visakh Refinery. 

The newly operational unit has a capacity of 3.55 MMTPA and marks a major technological upgrade for the refinery, strengthening HPCL’s refining capabilities and operational efficiency.

Advanced Technology and Conversion Efficiency

The Residue Upgradation Facility is based on advanced LC-Max residue hydrocracking technology. This technology enables the conversion of nearly 93% of bottom oils into high-value products. By upgrading low-value residues into premium fuels, the refinery significantly enhances product quality and overall value realisation.

Improvement in Distillate Yield and Product Mix

With the commissioning of the RUF, the Visakh Refinery can now improve its distillate yield by up to 10% compared with recent pre-expansion levels. This increase in middle distillate output supports higher production of products such as diesel, aligning better with market demand and improving the overall product slate of the refinery.

Impact on Margins and Crude Flexibility

The upgraded facility is expected to substantially improve Gross Refining Margins at the Visakh Refinery. Higher margins will be driven by the ability to process heavier and opportunity crudes, enhanced operational flexibility, and increased value realisation per barrel. These factors together strengthen the refinery’s competitiveness in a dynamic crude and product market.

Strengthening Supply Chain and Profitability

The increase in middle distillate production will help HPCL narrow the gap between its high-speed diesel marketing and refining volumes. This reduces reliance on external sourcing, strengthens the internal supply chain, and supports improved profitability through better margin capture and product optimisation.

Enhanced Refinery Complexity and Digital Integration

Following the commissioning of the RUF, the Nelson Complexity Index of the Visakh Refinery has improved to 11.6, placing it among India’s most advanced deep-conversion refineries. The facility is integrated with the LC-Max Digital suite, enabling efficient and optimised operations, better yield control, and sustained margin management.

Hindustan Petroleum Corporation Share Price Performance

On January 5, 2026, Hindustan Petroleum Corporation share price opened at ₹495.15, almost the same as its previous close of ₹495.85. At 11:43 AM, the share price of Hindustan Petroleum Corporation was trading at ₹501.55, up by 1% on the NSE.

Also Read: Top Dividend Paying Stocks for January 2026!

Conclusion

The commissioning of the Residue Upgradation Facility marks a significant step in HPCL’s strategy to enhance refining efficiency, profitability, and technological leadership. By upgrading residue processing capabilities, the company has strengthened its ability to respond to market demand, optimise crude selection, and deliver long-term value from its refining operations.

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