Hindustan Petroleum Corp. (HPCL) is set to start operating its new 180,000 barrels per day Barmer refinery in India’s desert state of Rajastha by December using Middle East oil.

“The new refinery can process 100% heavy grades, so we will buy Middle Eastern heavy oil and will also bid to buy Mangala oil as we have a dedicated pipeline from the field to the refinery,” S. Bharatan told Reuters.

Notably, Mangala oil is produced at an oil block operated by a unit of Vedanta Resources in Barmer.

HPCL is also looking to commission an integrated petrochemical project at the same site in the second quarter of 2025.

The project, in which HPCL holds a 74% stake and the Rajasthan government holds the remainder, was initially scheduled to be completed by December 2022. However, due to pandemic-related shutdowns, the plans have been delayed.

Currently, HPCL operates a 300,000 bbl/d Vizag refinery in southern Andhra Pradesh state and a 196,000 bbl/d Mumbai refinery in western India. With the addition of the Barmer refinery, HPCL will significantly increase its refining capacity and strengthen its position in the Indian market.