India HPCL's high sulphur oil imports to rise after refinery upgrade

NEW DELHI (Reuters) - Indian state refiner Hindustan Petroleum Corp's import of high sulphur crude oil will rise after expansion of its Vizag plant to 300,000 barrels per day along with bottom upgradation units by end-2022, its chairman M.K. Surana said on Thursday.

The company sees expansion of its 166,000 barrels per day Vizag refinery to 300,000 bpd by March next year while bottom upgradation project would be completed by end-2022.

HPCL is expanding refining capacity to meet rising fuel demand in the country.

HPCL hopes to start its Mumbai refinery after capacity expansion to 190,000 by mid-August while full scale runs would be achieved by mid-October.

"There will be no change in crude diet of Mumbai refinery after expansion. Vizag refinery will have the flexibility to process 100% high sulphur crude oil after commissioning of bottom upgradation units," Surana said in the analysts call. Surana said upgradation will raise Vizag refinery's distillate yield to 90% and a double digit gross refining margins.

The refinery will operate at about 260,000 bpd capacity by March-2022 and runs would be gradually raised, he said.

(Reporting by Nidhi Verma)