HPCL expands base oil capacity at Mumbai Refinery by 61%
India’s Hindustan Petroleum Corporation Limited (HPCL) has announced a significant investment of INR4,679 crore (USD551 million) to expand its lube oil base stocks (LOBS) production at the Mumbai refinery by 61%. The initiative, approved by HPCL’s Board of Directors, is part of the “Lube Modernisation and Bottoms Upgradation Project” aimed at bolstering premium base oil output and meeting growing market demand for Group II and Group III base oils.
Project details
The expansion will increase LOBS production from 475,000 tonnes per year to 764,000 tonnes per year, with a focus on Group II+ and Group III base oils. This will be achieved through the installation of a new integrated hydrocracker and catalytic dewaxing unit, expected to be operational by 2027-2028.
In addition to boosting LOBS output, the project will also increase bitumen production by approximately 487,000 tonnes per year by upgrading fuel oil to bitumen. The mechanical completion of the project is targeted within 36 months, with an additional three months allocated for commissioning.
Strategic context
HPCL’s Mumbai refinery, commissioned in 1954, has undergone several upgrades to reach its current capacity of 9.5 million metric tonnes per annum (MMTPA). The refinery sources crude oil from both domestic and international suppliers and produces a wide range of products, including LPG, motor spirit, aviation turbine fuel, and lubricants.
HPCL operates India’s largest lube refinery in Mumbai, accounting for more than 40% of the country’s installed LOBS capacity. The company’s broader refining portfolio includes the Visakhapatnam refinery (13.7 MMTPA) and joint ventures such as HPCL-Mittal Energy Limited and the Mangalore Refinery and Petrochemicals Limited.
Industry impact
The upgrade aligns with HPCL’s strategy to support India’s growing demand for high-quality lubricants while addressing stringent emission and performance standards. The investment underscores HPCL’s commitment to innovation and its leadership in India’s refining and lubricants sectors.
This move follows a year of record performance for HPCL, with its refineries processing a combined 22.33 million metric tonnes of crude in 2023-24, marking the highest throughput in the company’s history.
