News | January 5, 2026

HPCL Commissions Residue Upgradation Facility With World's First LC-Max Unit At Visakh Refinery, Advancing Deep-Conversion Refining Capability And Enhancing Profitability

  • Residue Upgradation Facility (RUF) commissioned at HPCL’s Visakh Refinery.
  • India’s first Resid Hydrocracking Unit – a hydrogen-based bottom-of-the-barrel upgradation unit.
  • World’s first LC-Max Unit achieving about 93% conversion of bottom oils into high-value products.
  • Facility significantly enhances refinery complexity, distillate yield and substantially improves margins.

Hindustan Petroleum Corporation Limited (HPCL) has successfully commissioned the Residue Upgradation Facility (RUF) at its Visakh Refinery, marking a major milestone in India’s deep-conversion refining capability and contributing meaningfully to national energy security.

Aligning fully with the Hon’ble Prime Minister’s vision of Aatmanirbhar Bharat, several critical project equipment were indigenously manufactured, thereby strengthening India’s refining self-reliance. This first-of-its-kind facility in India showcases unprecedented engineering scale, housing among the world’s heaviest three LC-Max reactors of approximately 2,200 MT each.

With a capacity of 3.55 MMTPA, the RUF employs advanced LC-Max based residue hydrocracking technology to achieve about 93% conversion of bottom oils into high-value products. The Visakh Refinery will now have the capability to enhance its distillate yield by up to 10% from pre-VRMP (Visakh Refinery Modernization Project) levels.

The Gross Refining Margins (GRMs) of the Visakh Refinery are set to increase substantially owing to a superior product slate, flexibility to process heavier and opportunity crudes, and higher value realisation per barrel. The increase in middle-distillate output reduces the gap between HPCL’s HSD marketing and refining volumes, lowers dependence on external sourcing, strengthens the supply chain, and enhances profitability.

Improved heat integration and process efficiency have reduced the Refinery’s Energy Intensity Index (EII), lowering operating costs while advancing sustainability objectives. The Nelson Complexity Index of the Visakh Refinery now stands at an impressive 11.6, positioning it among India’s most advanced deep-conversion refineries.

Complementing the physical commissioning, HPCL has deployed the RUF (LC-Max) Digital Suite — an industry-first in Indian refineries. The suite integrates real-time monitoring, predictive analytics using proprietary thermodynamic models, and AI-driven optimisation to ensure stable, efficient, and optimised operations.

HPCL expresses its sincere gratitude to the Ministry of Petroleum & Natural Gas, other Ministries of the Government of India, the Government of Andhra Pradesh, statutory bodies, project partners, licensors CLG, turnkey contractor L&T, PMC EIL, vendors, contractors, and dedicated teams whose collective efforts enabled the successful commissioning of the RUF.

Source: Hindustan Petroleum Corporation Limited