Urals, Basrah Crude to Power HPCL’s Rajasthan Refinery as Completion Nears

India is gearing up to inaugurate its first greenfield integrated refinery complex in nearly a decade, with attention turning to medium sour crude grades like Russia’s Urals and Iraq’s Basrah to fuel the facility.

The HPCL Rajasthan Refinery Limited (HRRL), a 9 MTPA integrated refinery and petrochemical complex, is under construction in Pachpadra, Balotra district, Rajasthan. Jointly developed by state-run Hindustan Petroleum Corporation Ltd (HPCL) and the Rajasthan government—holding 74% and 26% equity stakes, respectively—the refinery is entering its final pre-commissioning stages.

The refinery comes online as India is expected to outpace China in oil demand growth. Abhishek Ranjan, South Asia oil research lead at S&P Global Commodity Insights, highlighted that the facility is designed to process over 83% imported medium-grade crude, with Russian Urals likely being a preferred choice.

However, to enhance energy security, the refinery aims to diversify its crude basket. Arabian and Basrah grades are among the top alternatives being considered, Ranjan added. The configuration of the refinery includes advanced units such as vacuum distillation, delayed coker, and petro-fluid catalytic cracking systems, enabling it to handle heavier crude varieties.

India’s Oil Minister Hardeep Singh Puri has called the refinery the “jewel of the desert,” emphasizing its potential to bring transformative socioeconomic benefits. These include creating thousands of jobs and reducing the country’s dependence on imported petrochemical products.

Incorporated in 2013, HRRL faced cost escalations due to rising commodity prices, expanded project scope, and pandemic-related delays, pushing the completion timeline back.

The refinery will primarily produce Euro 6-grade high-speed diesel, gasoline, and petrochemical products such as polypropylene, butadiene, benzene, and polyethylene variants.

This project marks India’s first standalone refinery development since the Paradip Refinery by Indian Oil Corporation in 2016, which has a 15 MTPA capacity. Since then, refiners have focused on expansion projects, making HRRL a significant milestone in the country’s energy landscape.

“The Rajasthan refinery will cater to demand-intensive northern India, which currently faces a deficit in refined oil product supplies,” Ranjan noted.

As operations commence, the refinery is poised to bolster India’s refining capacity, support economic growth, and strengthen energy security.

HBL