Visakhapatnam Refinery Modernisation and Upgrades

The Visakhapatnam Refinery has undergone significant modernisation and upgrades over the years. The refinery's capacity has been expanded to 8.33 million tons per annum.

In 2016, the refinery underwent a major expansion project, which included the installation of a new 400,000 barrel per day crude distillation unit. This upgrade has enabled the refinery to process heavier and sourer crudes.

The refinery's modernisation has also led to the introduction of new technologies and processes, such as the use of advanced catalysts and digitalisation of operations. These improvements have resulted in increased efficiency and productivity.

The refinery's modernisation has also enabled it to produce a wider range of petroleum products, including diesel, petrol, and liquefied petroleum gas.

Visakhapatnam Refinery has a rich history dating back to 1957 when Caltex Oil Refining (India) commissioned it with an installed capacity of 0.675 million tonnes per year.

The refinery changed hands in 1976 when it was acquired by the Government of India, and then again in 1978 when it was amalgamated with HPCL.

The refinery's capacity was significantly increased in 1985 to 4.5 million tonnes per year under the Visakha Refinery Expansion Project-I (VREP-I), and again to 7.5 million tonnes per year in 1999 under VREP-II.

In 2010, the capacity was further increased to 8.3 million tonnes per year.

The refinery has undergone significant modernisation, with the Visakh Refinery Modernisation Project (VRMP) aiming to increase the refining capacity from 8.3 million tonnes per year to 15 million tonnes per year by 2020.

The project involves the installation of new primary processing units, including a 9 million tonne per year crude distillation unit, a 3.3 million tonne per year vacuum gas oil hydrocracker, and a 290,000 tonne per year naphtha isomerisation unit.

The modernisation project also includes the construction of a new utility system, comprising a re-circulating sea cooling water system and a demineralised water system featuring a new reverse osmosis system and water tanks.

HPCL received approval for the VRMP from the Ministry of Environment, Forest, and Climate Change in February 2016, and the project is estimated to involve an investment of approximately $3.1 billion.

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Visakha refinery was commissioned by Caltex Oil Refining (India) in 1957, with an installed capacity of 0.675 million tonne per year.

The facility was acquired by the Government of India in 1976 and later merged with HPCL in 1978.

Its refining capacity was increased to 4.5 million tonne per year after the first major expansion project in 1985.

The refinery's capacity was boosted again to 7.5 million tonne per year in 1999, following the second major expansion project, VREP-II.

By 2010, the refining capacity had reached 8.3 million tonne per year, marking significant growth from its initial capacity.

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The Visakh Refinery Modernisation Project (VRMP) is a significant expansion of the Visakh refinery in India, aiming to increase its refining capacity from 8.3 million tonnes per year to 15 million tonnes per year.

The project involves the installation of a new 9 million tonne per year crude distillation unit (CDU) to replace one of the three existing CDUs, a 3.3 million tonne per year vacuum gas oil hydrocracker, and a 290,000 tonne per year naphtha isomerisation unit (NIU).

The scope of the project also includes the installation of a 3.1 million tonne per year solvent de-asphalting (SDA) unit, a 2.5 million tonne per year slurry hydrocracker unit (SHCU), and a 96 t/day propylene recovery unit (PRU).

HPCL received approval for the VRMP from the Ministry of Environment, Forest, and Climate Change (MoEFCC) in February 2016.

The project will also involve the construction of a new utility system, including a re-circulating sea cooling water system and a demineralised water system featuring a new reverse osmosis (RO) system and water tanks.

A 300 t/h non-hydro-processing sour-water stripper (SWS-I), a 185 t/h hydro-processing sour-water stripper (SWS-II), two 540 t/h amine regeneration units (ARUs), a 112,000 tonne per year sulphur recovery LPG treating unit, and other auxiliary units will be installed as part of the modernisation.

The project is estimated to involve an investment of approximately $3.1 billion and is scheduled for completion in 2020.

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The Visakhapatnam Refinery is upgrading its technology to produce cleaner-burning fuels. The refinery will implement Honeywell UOP Penex process technology to produce isomerate, a high-octane gasoline component, and a Unicracking hydrocracking unit to produce cleaner-burning diesel fuel.

The Penex process employs high-activity isomerisation and benzene impregnation catalysts from Honeywell UOP. This will significantly increase the refinery's capability to deliver petrol and diesel in compliance with the new BS-VI clean fuels standards.

The refinery's refining capacity will expand from 8.3 million tonnes per year to 15 million tonnes per year, enabling the production of Bharat Stage-VI (BS-VI)-compliant fuels. The project will also enhance gross margins by generating high-value transportation fuels from low-value raw materials.

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The Visakh refinery is getting a major technology upgrade. The VRMP will implement Honeywell UOP's Penex process technology to produce high-octane gasoline component called isomerate.

This technology employs high-activity isomerisation and benzene impregnation catalysts from Honeywell UOP. The Penex process will significantly increase the refinery's capability to deliver petrol and diesel in compliance with the new BS-VI clean fuels standards.

Unicracking processes will also be used to produce cleaner-burning fuels from a range of feedstock. These processes use highly effective catalysts to yield higher quantities of cleaner-burning fuels.

The planned integration of innovative technologies will also enhance gross margins of the refinery by generating high-value transportation fuels from low-value raw materials. The refinery's refining capacity will increase from 8.3 million tonne per year to 15 million tonne per year.

A 9 million tonne per year crude distillation unit (CDU) will be installed as part of the expansion project. This will replace one of the three existing CDUs, while the other two CDUs will continue to process 3 million tonne per year each.

A full conversion hydrocracker unit of 2.8 million tonne per year capacity will be installed to process excess gas oil after saturating the existing FCCs. All the sour gas oil will be processed in once through hydro-cracker unit (OHCU) and the FCC feed will comprise OHCU bottoms and sweet vacuum gas oil (VGO).

The modernisation project also includes the installation of new residue upgradation units to process the entire vacuum residue for the 15 million tonne per year capacity refinery. A new solvent deasphalting unit of 2.55 million tonne per year capacity will be installed to process the balance vacuum residue after saturating the existing VBU and BBU.

HPCL Visakh refinery modernisation will also involve the construction of a new utility system comprising a re-circulating sea cooling water system and a demineralised water system featuring a new reverse osmosis (RO) system and water tanks.

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Procurement is a crucial step in any project, and in the context of technology and upgrades, it's essential to get it right. The transportation of large equipment such as CDU/VDU columns, FCHCU reactors, and RUF Reactors from Hazira to Vizag through the sea route is a significant example of this.

These massive pieces of equipment are transported in single pieces, which requires careful planning and execution to ensure their safe arrival at the destination. The sheer scale of these items means that any mistakes during transportation could have serious consequences.

The sea route is often chosen for its cost-effectiveness and efficiency, but it also comes with its own set of challenges, such as navigating through busy shipping lanes and dealing with unpredictable weather conditions.

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The construction of the Visakhapatnam Refinery was a complex process that involved managing a peak workforce of 20,000 through various contractors. This massive undertaking was made even more challenging by the need to remobilize manpower after a mass exodus during the Covid 19 lockdown phase.

The construction process required extensive use of sheet piling for earth retention and supporting while excavation, due to space constraints and extremely poor sub-soil conditions. This innovative approach ensured the stability of the site and allowed for the completion of the project.

Here are some of the key contractors involved in the construction and upgrade of the refinery:

The HPCL Visakh refinery is an integrated refinery facility spread over 723 acres. It's a massive operation that requires careful planning and execution.

The refinery comprises three crude distillation units (CDUs), which are the heart of any oil refinery. These units are responsible for separating crude oil into various petroleum products.

An additional area of 50 acres will be used for petroleum storage units, leased by HPCL from the Vishakhapatnam Port Trust. This will help to optimize storage capacity and reduce congestion within the refinery.

The refinery also features a naptha hydrotreating (NHT) unit, which removes impurities from naptha to produce high-quality petrochemicals. This is just one of the many complex processes that take place within the refinery.

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The diesel hydro desulphurisation unit is another critical component of the refinery, responsible for removing sulphur from diesel fuel to produce cleaner-burning fuel. This is essential for meeting environmental regulations and reducing air pollution.

The refinery also includes a propylene recovery unit, which extracts propylene from refinery streams and produces high-purity propylene for use in various applications. This is a valuable byproduct that can be used in the production of plastics and other chemicals.

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Construction projects often involve working in challenging environments, and the HPCL refinery modernisation project was no exception. The construction team had to work in a brown field environment.

The project required a large workforce, with a peak of 20,000 people engaged through various contractors. This is a significant number, and it's not surprising that the project required careful management.

One of the biggest challenges the construction team faced was the remobilization of manpower after a mass exodus during the Covid 19 lockdown phase. This must have been a complex and time-consuming process.

To address space constraints and extremely poor sub-soil conditions, the construction team made extensive use of sheet piling for earth retention and support during excavation.

Here are some of the notable construction activities:

The HPCL Visakh refinery is a major player in the region, and its modernisation project is a significant upgrade. The project includes the installation of a new CDU/VDU-IV with a processing capacity of 9Mtpa.

This new unit will replace one of the existing CDUs, which have a processing capacity of 3Mtpa each. The existing CDUs will continue to process 3Mtpa each, while the new unit takes over the remaining capacity.

A full conversion hydrocracker unit of 2.8Mtpa capacity will be installed to process excess gas oil. This unit will saturate the existing FCCs.

The refinery will also get a new solvent deasphalting unit of 2.55Mtpa capacity to process vacuum residue. This unit will help upgrade the entire vacuum residue for the 15Mtpa capacity refinery.

An additional alkylation unit with a capacity of 200ktpa will be installed. This will increase the refinery's production capacity.

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The Visakhapatnam Refinery has had to overcome several challenges to operate efficiently. One of the biggest hurdles is its low energy consumption, which is the lowest among all other CDU/VDUs operating in India, giving it the flexibility to operate over an extreme wide range of crude types.

Producing MS and Diesel that comply with BS VI Standards is another significant achievement. This means that the refinery is able to meet the stringent environmental regulations in place.

The refinery's execution of India's first Residue Upgradation Facility with a 90% conversion rate is a remarkable feat, showcasing its capabilities in innovation and efficiency.

Operating in extreme conditions can be a challenge, especially when dealing with a wide range of crude oils. This is evident in the lowest energy number among all CDU/VDUs operating in India.

Producing MS and Diesel that comply with BS VI Standards is a significant achievement. This ensures that the products meet the highest standards of quality and safety.

The execution of India's first Residue Upgradation Facility with a 90% conversion rate is a testament to the company's innovative approach to energy production.

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A fire at the HPCL refinery in Visakhapatnam was quickly doused out on Tuesday evening.

No casualties took place, according to the HPCL, which immediately activated safety measures and firefighting procedures.

The fire occurred in one of the crude processing units, specifically in the overhead system of a distillation unit.

A loud explosion was heard from the site, and emergency services were quickly alerted.

Teams from HPCL, the Eastern Naval Command, and the AP State Disaster Response and Fire Services Department worked together to put out the fire.

The cause of the incident is yet to be ascertained, but fortunately, there was no risk to the public.

The affected unit will be brought back online after a necessary inspection and repairs are carried out.

There will be no disruptions in the supply of products, according to the HPCL.

The Visakhapatnam Refinery is a massive facility with a total project cost of $3.2 billion. It took 43 months to complete.

The refinery's overall capacity is 9 MMTPA, which is a significant increase from its initial capacity. The capacity was increased to 4.5Mtpa in 1985, to 7.5Mtpa in 1999, and to 8.3Mtpa in 2010.

Here are the major processing units at the refinery: CDU/VDU, FCHCU, RUF, NIU, MS block, DHT, HGU, SRU, CPP, Utilities & Offsites, and Crude and Product storage tanks.

The refinery is currently undergoing a modernisation project, which will enable the production of BSVI-compliant fuels and boost its overall processing capacity. This project is in the advanced stage of completion.