FACTBOX: India's HRRL, first greenfield refinery in a decade, to process diverse crude grades

India's first greenfield integrated refinery complex in nearly a decade has commenced commercial operations, marking a milestone in the country's emergence as a global refining hub.

The complex is expected to process a diverse range of crudes due to its relatively high Nelson Complexity Index. Feedstocks from the Middle East, Russia and West Africa could dominate the import basket, according to S&P Global Energy CERA.

HPCL Rajasthan Refinery Ltd., dubbed the "jewel of the desert," features high petrochemical integration and is expected to reduce India's reliance on imported petrochemicals. The complex, jointly built by state-run Hindustan Petroleum Corp. and the Rajasthan government, commenced operations at a time when conflict in the Middle East prompted Indian refiners to diversify their crude sourcing.

The following are key facts about India's new Rajasthan refinery complex:

Trade flows

• The HRRL refinery was inaugurated by Indian Prime Minister Narendra Modi on July 4, though it has been importing crude oil cargoes since December 2025.
• The refinery is designed to process a diverse crude basket, while reducing India's dependency on petrochemical imports and catering to demand-intensive northern markets.
• The refinery has been importing trial crude cargoes for test runs since December 2025, including Azerbaijan's Azeri Light, Libya's Mesla and Sarir, and West African grades such as Cabinda, Okwuibome and Forcados.
• HRRL will process 83% imported crude and 17% domestic crude from Rajasthan's Mangla oil fields.
• HPCL currently sources crude from more than 170 grades produced in nearly 40 countries worldwide. The company plans to gradually increase spot contract purchases to take advantage of temporary discounts and arbitrage opportunities, thereby reducing its reliance on the traditional 80:20 term-to-spot procurement mix, according to HPCL.

Prices

• Earlier in July, HPCL, on behalf of HRRL, issued a tender seeking up to 2 million barrels of crude at its Mundra Terminal on India's west coast.
• The delivery will take place over Sept. 5-15 and will be based on the August average of Platts Dated Brent crude assessments.
• The integrated project is expected to have a cost advantage over standalone petrochemical facilities that source raw materials from other refineries.
• The flexibility in using a mix of imported and Rajasthan crude should help improve HPCL's profitability, according to CRISIL, a unit of S&P Global.
• HPCL management expects gross refining margins of about $20/barrel. The operational expense for its Rajasthan refinery could be in line with other refineries at $2/b-$3/b, according to Kotak Securities.
• The project's high complexity could enable gross refining margins higher than those of HPCL's existing Mumbai and Visakhapatnam refineries, CRISIL said.

Infrastructure

• The complex is jointly owned by HPCL, which holds 74% equity, and the Rajasthan government, which holds the remaining 26%.
• HRRL has a Nelson Complexity Index of 17, indicating high processing sophistication.
• The refinery has an annual capacity of 9 million metric tons and 2.4 million mt of petrochemicals.
• Petrochemical intensity stands at 26%, among the highest integrations globally, according to HPCL.
• India's cabinet approved an 84% cost increase to Rupees 794.59 billion ($8.31 billion) from the original Rupees 431.29 billion.
• Pipeline connectivity with the Mundra crude import terminal on the western coast and with the Mangla oil fields has been completed.
• The refinery's strategic location positions it to serve growing demand in western, northern and central India.
• The refinery will produce Euro 6-grade high-speed diesel, gasoline and value-added petrochemical products such as polypropylene, linear low-density polyethylene, high-density polyethylene, benzene, butadiene and toluene.
• The refinery features large vacuum distillation, delayed coker and petrofluid catalytic cracking units, which would enable processing of heavier crude grades.
• The facility is the first standalone refinery developed in India since Indian Oil Corp.'s 15 million mt/y Paradip Refinery in 2016.
• With the addition of HRRL, HPCL's total refining capacity will rise to 45 million mt/y from 36 million mt/y.