New Delhi, February 11, 2025: Hindustan Petroleum Corporation Limited (HPCL), one of India’s leading government-owned oil companies, is accelerating its refinery and petrochemical expansion plans to meet the nation’s growing energy needs and strengthen its market position in the evolving global energy landscape. Chairman Rajneesh Narang highlighted that HPCL is strategically increasing its refining capacity, investing in petrochemical production, and optimizing crude oil procurement processes to reduce costs and enhance profitability. With India ranking as the world’s third-largest crude oil importer and consumer, fuel demand is projected to remain high over the next decade, and HPCL is positioning itself to effectively address this surge.
At its Visakhapatnam (Vizag) refinery in southern India, HPCL has recently expanded its processing capacity to 300,000 barrels per day (bpd). The company is also evaluating a further expansion of 40,000–60,000 bpd, which is currently under approval. To complement this capacity growth, HPCL is introducing advanced refining units designed to enhance efficiency, improve product quality, and ensure environmentally sustainable operations. By deploying cutting-edge technology, the refinery aims to reduce energy consumption, lower emissions, and increase profitability, ensuring that the facility remains competitive in a rapidly transforming energy market.
In addition to its refining operations, HPCL is placing a strong emphasis on petrochemicals, which promise higher margins and long-term growth potential compared to traditional fuel products. The upcoming Barmer refinery in Rajasthan is set to become India’s first refinery capable of converting 26% of crude oil into petrochemical products rather than conventional fuels. The refinery is expected to begin processing crude oil by mid-year, while the petrochemical plant is scheduled to start operations in December 2025. This strategic diversification into petrochemicals reflects HPCL’s forward-looking approach to remain resilient and competitive amid the global energy transition, including the gradual shift toward renewable energy sources.
To support both refinery and petrochemical expansion, HPCL is revamping its crude oil procurement strategy. The company imports approximately 21 million tons of crude annually, with 8–9 million tons sourced through short-term contracts. Last year, HPCL established a dedicated crude trading team tasked with negotiating better prices and optimizing supply arrangements. These initiatives aim to reduce input costs, improve operational efficiency, and secure a stable supply of quality crude for both fuel and chemical production.
Despite India’s growing interest in electric vehicles and renewable energy, HPCL is balancing its investments in traditional refining with forward-looking petrochemical projects. By doing so, the company ensures it remains a key player in the energy sector while adapting to future market dynamics. The dual focus on refining capacity expansion and petrochemical integration positions HPCL to meet rising domestic demand, generate higher returns, and contribute to India’s energy security over the next decade.
HPCL’s initiatives underscore the company’s commitment to sustainable growth, technological innovation, and strategic diversification, ensuring that it continues to play a vital role in India’s evolving energy ecosystem.
