Hindustan Petroleum Corp Ltd (HPCL) is actively seeking liquefied natural gas (LNG) import deals as it prepares to commence operations at its 5 million ton per year LNG terminal in Chhara, western India, by the end of this year, according to its head of finance, Rajneesh Narang. The commissioning activities are expected to take place in November or December, contingent on weather conditions.

Chairman Pushp Kumar Joshi announced that HPCL will import crude in March to commission the Rajasthan refinery, with the linked petrochemical project expected to be completed by September 2025. Additionally, HPCL anticipates an improvement of $3 per barrel in its gross refining margins once its 300,000 bpd Vizag refinery is fully operational. The company plans to begin boosting production of high-value refined products at the Vizag refinery in the December quarter.

HPCL's previous attempt to commission the Chhara LNG terminal in April was thwarted by adverse weather. The company is constructing a breakwater to protect the harbor and may lease capacity in the LNG terminal to other players post-commissioning. The Chhara terminal will cater to the gas needs of HPCL's two existing refineries and a new 180,000 barrels per day (bpd) refinery and petrochemical project in Rajasthan.

In the June quarter, HPCL increased the processing of Russian oil to approximately 35-40% of its overall crude intake, up from about 25% a year ago. HPCL operates a 190,000 bpd refinery in Maharashtra and holds a stake in the 226,000 bpd Bathinda refinery in northern India, operated by Hindustan-Mittal Energy Ltd, which is part-owned by LN Mittal.