Commercial Production At Barmer Oil Refinery Set To Start By January 2025

State-owned Hindustan Petroleum Corporation Limited (HPCL) is set to commence commercial production at a new oil refinery in Rajasthan's Barmer district by January 2025.

"The 9 million tonnes a year refinery is 76 per cent mechanically complete and will be completed by year end or so. First product from the refinery will flow in December or January next year," HPCL director for refineries S Bharathan told reporters on the sidelines of India Energy Week.

In its first year, the Barmer refinery is expected to operate at 75 per cent to 80 per cent capacity as different units are commissioned. Full capacity is anticipated to be attained by 2027.

HPCL owns and operates refineries in Mumbai and Visakhapatnam with a capacity of 9.5 million metric tonnes per annum (MMTPA) and 15 MMTPA respectively. Further, it operates a 11.3 MMTPA capacity refinery at Bhatinda in Punjab in a joint venture with Mittal Energy Limited (HMEL).

The ambitious 9 MTPA oil refinery project was conceived in 2008 and received initial approval in 2013. However, owing to a political quagmire, the project remained on hold until 2018 when Prime Minister Narendra Modi inaugurated the commencement of work at the project site.

Estimated to cost Rs 72,937 crore, the refinery will manufacture BS-VI grade petrol and diesel alongside an array of petrochemical products including polypropylene, butadiene, linear low-density polyethylene, high-density polyethylene, benzene and toluene.

It is earmarked to address the growing demand for petroleum and petrochemical products across northern, western, and central India.