Hindustan Petroleum To Expand Vizag Oil Refinery By June

Hindustan Petroleum (HP) is likely to expand its Vizag oil refinery in Andhra Pradesh with a 15 million tonne per annum (MTPA) capacity by June 2023, according to the company’s chairman, Pushp Joshi’s official statement on Sunday.

Consequently, HP is also expanding its 8.33 million tonne per annum (MTPA) refinery and building a new one at Barmer in Rajasthan. This will help to reduce the gap while producing and selling the fuel, the activity is already commissioned and we hope to complete it in near June, he added according to reports.

According to a report, the chairman stated, the company’s crude imports are likely to surge with expansion and will focus to buy from cheaper sources.

He said we market more than the production and so expansion is HP’s optimism to achieve sufficient refined products.

He stressed that the residue upgradation project at Vizag refinery will help the company to improve distillate yield and will be ready by the end of this year or in January 2024.

The expansion portfolio includes HP setting up an oil-to-chemical plant linked to its Vizag refinery and building a 5 mtpa gas import terminal at Chhara in the Western state of Gujarat.

Meanwhile, Joshi added LNG terminal is under construction and will get ready by March-end as the evacuation pipeline of gas and a breakwater and a high tide resistant vessel is yet to be built.

The chairman underlined they are finding out options for operating the terminal and have floated a term sheet to import 5-2 million tonnes of liquefied natural gas (LNG).