Hindustan Petroleum Corp. Ltd. (HPCL) awarded French engineering company Technip Energies an engineering, procurement and construction contract for two processing units at its Mumbai refinery as part of a project to increase production of higher-quality lubricant base oils, according to a Technip press release dated Oct. 12.
India has substantial domestic base oil production, led by HPCL, whose Mumbai refinery has capacity of 475,000 metric tons per year. However, the expansion is unlikely to reduce import dependence in the near term. According to Argus, India was the world’s largest base oil importer in 2025, bringing in more than 3 million metric tons, up 11% from 2024.
Domestic production is mostly API Group I, while lubricant blenders rely heavily on imports of Group II and Group III stocks, particularly from South Korea and Singapore.
The contract covers a 550,000 t/y integrated hydrocracker and catalytic dewaxing unit and an 850,000 t/y solvent deasphalting unit. Both will be integrated into the existing 9.5 million t/y refinery.
HPCL’s Lube Modernization and Bottoms Upgradation project aim to increase annual base oil production capacity to 764,000 t/y from 475,000 t/y, including Group II+ and Group III base oils.
Technip Energies described the contract as a large award, representing between €250 million and €500 million in revenue. The wider project is scheduled for completion in March 2028.