HPCL’s Rajasthan refinery restarts key crude unit after fire in April

Hindustan Petroleum Corp Ltd (HPCL) on Thursday said its joint venture refinery in Rajasthan has restarted its crude distillation unit (CDU) after completing restoration work following a localised fire in April, paving the way for a phased ramp-up of fuel production.

In a stock exchange filing, HPCL said the CDU at HPCL Rajasthan Refinery Ltd (HRRL) was successfully restarted after repairs were completed, with all product streams from the CDU and vacuum distillation unit (VDU) now being produced and routed for downstream processing.

The refinery has already commenced production of key petroleum products, including Bharat Stage VI-compliant high-speed diesel (HSD), liquefied petroleum gas (LPG), petroleum coke (petcoke) and naphtha, the company said.

Sales of LPG and petcoke have begun, while dispatches of BS-VI diesel are expected to start by the end of this week. Production and dispatch of BS-VI motor spirit, or petrol, are slated to commence next week. The restart follows a localised fire in a heat exchanger stack of the CDU on April 20, which had temporarily disrupted commissioning and ramp-up activities at the 9 million tonnes a year refinery.

A major fire broke out near the main unit of the newly built Rs 79,450-crore refinery of HPCL Rajasthan Refinery Ltd on April 20, a day before the scheduled inauguration by Prime Minister Narendra Modi. The fire in the crude distillation unit -- the main unit of a refinery -- was likely caused by a hydrocarbon leak from a valve or flange in a heat exchanger circuit.

"The CDU restoration work has been completed, and the Unit has been successfully started. All product streams from the CDU/VDU are being produced and routed to the respective tanks for downstream processing,”HPCL said. "With this, and operations of various downstream Units, HRRL refinery has already commenced production of some of the main petroleum products, such as BS-VI high speed diesel (HSD), LPG, petcoke and naphtha, etc."

HPCL said management remains focused on ensuring safe, stable and efficient operations as the refinery progressively increases production toward optimal capacity utilisation.

The refinery project was scheduled to begin commercial operations from July 1, according to a Government of India statement issued on April 8, announcing approval of the Union Cabinet to enhance the cost of the project.

This is not the first time a fire has broken out at a refinery under commissioning. On January 30, 2016, a major fire broke out at Indian Oil Corporation’s (IOC) Paradip refinery’s atmospheric vacuum unit (AVU), just over a week before its scheduled inauguration by Prime Minister Modi on February 7, 2016. No injuries were reported even then.

The Rajasthan refinery will be India’s 24th and the second most complex unit yet in India.

The refinery-cum-petrochemical complex, located in Rajasthan’s Balotra district, is designed as a 9 million tonnes per annum facility with a strong petrochemical focus, reflecting India’s strategy to boost value-added output and reduce import dependence.

It features a Nelson Complexity Index of 17 and petrochemical yields exceeding 26 per cent, aligning with global benchmarks for efficiency and sustainability, according to an official statement.

Refinery complexity -- often measured by the Nelson Complexity Index -- indicates the capability to handle heavier, dirtier crude oil (which is cheaper) and turn it into high-value products like gasoline and diesel.

Reliance Industries Ltd’s Jamnagar refinery in Gujarat is the world’s most complex and largest refinery, featuring a complexity index of 21.1 and the capability to process over 216 different crude oil grades. It is designed to convert low-value heavy/sour crude into high-value fuels, processing 1.24-1.4 million barrels per day (Rajasthan refinery has a processing capacity of 180,000 barrels per day).

HRRL is a joint venture between HPCL, which holds a 74 per cent stake, and the Government of Rajasthan owning the remaining 26 per cent.

Once operational, the complex will produce fuels, including petrol and diesel, along with petrochemicals such as polypropylene, polyethylene variants and key industrial chemicals like benzene and butadiene.

These products are widely used across sectors ranging from transportation and packaging to pharmaceuticals and construction.