"HPCL to Commission Barmer Refinery by December 2025"

Hindustan Petroleum Corporation (HPCL) announced recently that it expects to complete the full commissioning of its refinery-cum-petrochemicals complex at Barmer, Rajasthan, by December 2025. The state-run oil company also stated that it expects to see the full benefits of the refinery by March 2027.

HPCL holds a 74% stake in the HPCL Rajasthan Refinery Limited (HRRL), with the Rajasthan government holding the remaining 26%. The complex, which has a crude refining capacity of 9 million tonnes per annum (MTPA) and 2.4 MTPA of petrochemical production, is set to play a key role in meeting the growing demand for petroleum and petrochemical products in India, particularly in the western, northern, and central regions.

During an analyst call, HPCL management stated that mechanical completion of the project is expected by September 2025, with commissioning scheduled to take place by December 2025. Full operational benefits are anticipated by the fiscal year 2027.

HPCL has contributed approximately ₹13,000 crore in equity toward the refinery's development, with a total expected contribution of ₹18,000 crore. The total investment commitment for HRRL stands at ₹71,800 crore, with total debt reaching ₹34,000 crore. HRRL has secured a loan agreement of ₹48,625 crore under a consortium arrangement, with the overall project cost estimated at ₹72,937 crore.

The project includes the construction of a pipeline for transporting both Rajasthan crude and imported crude, a water pipeline, a captive power plant, storage facilities, and various utilities. The complex will produce BS-VI grade Motor Spirit (petrol), High-Speed Diesel (diesel), and a range of petrochemical products such as Polypropylene, Butadiene, LLDPE, HDPE, Benzene, and Toluene.

HPCL management also discussed ongoing efforts to optimize other refinery operations, including work to enhance the capacity of its Visakhapatnam refinery to approximately 17 MTPA. Currently, the Visakhapatnam refinery has a capacity of 13.7 MTPA and produces a wide array of products, including LPG, Propylene, Naphtha, and various grades of diesel and gasoline.

The Barmer refinery's expansion is set to be a crucial development in India's growing refining and petrochemical sectors, contributing significantly to meeting domestic demand.

HBL