Hindustan Petroleum Corporation Limited announced on Monday, December 16, that its board of directors has approved a modernisation project at its Mumbai refinery. The lube modernisation and bottoms upgradation project will increase the production capacity and quality of the refinery's output at a total investment of ₹4,679 crore.
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The project aims to increase the production of lube oil base stocks (LOBS) from the current 475 kilotonnes per annum (KTPA) to 764 KTPA. The upgraded facility will produce superior-grade Group II+ and Group III LOBS, HPCL said. Additionally, the project will boost bitumen production by approximately 487 KTPA, utilising fuel oil for this upgrade. The timeline for mechanical completion is 36 months, with an additional three months for commissioning after the board’s approval.
On November 29, GP Petroleums Ltd announced that it has entered into a supply agreement worth approximately ₹223 crore with HPCL for the provision of bulk bitumen - VG30.
Shares of Hindustan Petroleum ended over 1% in the red on Monday, December 16.