Numaligarh Refinery Logs Record Throughput in FY26; Operates Above Capacity for Second Year

Why It Matters

The surge in throughput underscores Numaligarh’s growing role in India’s energy security, especially in the Northeast, while the expansion and green hydrogen tie‑up signal a shift toward higher‑value, low‑carbon refining. The roughly $4 billion investment will boost domestic fuel supply and generate significant downstream economic activity.

Key Takeaways

• Processed 3.113 million tonnes, 103% capacity utilisation.
• LPG output rose 22% in March 2026.
• Green hydrogen supply contract secured with BP‑Sembcorp JV.
• Expansion to 9 MMTPA costs ~US$4 billion.
• Project slated for completion by Dec 2026.

Pulse Analysis

Numaligarh Refinery’s FY26 performance highlights a broader trend of capacity maximisation among Indian refineries. By pushing throughput beyond its designed 3 MMTPA limit, the plant not only meets rising domestic demand for gasoline and LPG but also improves asset utilisation, a key metric for profitability in a commodity‑sensitive sector. The refinery’s strategic location in Assam strengthens energy security in the Northeast, a region historically dependent on imported fuels, and aligns with the government’s push to develop regional industrial hubs.

The 10,000‑tonne‑per‑year green hydrogen agreement with the BP‑Sembcorp joint venture marks a pivotal step toward decarbonising India’s refining landscape. Green hydrogen can be blended into refinery processes to lower carbon intensity, supporting the country’s net‑zero ambitions while creating a new revenue stream. This partnership also showcases how traditional oil majors are collaborating with renewable‑focused firms to diversify feedstock sources, a model likely to be replicated across other large‑scale refineries seeking to future‑proof their operations.

Looking ahead, the three‑fold capacity expansion to 9 MMTPA, slated for completion by December 2026, represents a $4 billion capital outlay—one of the largest brownfield projects in the region. The investment will increase domestic fuel output, reduce reliance on imports, and stimulate ancillary industries such as petrochemicals and logistics. Moreover, the expanded capacity positions Numaligarh as a critical node in India’s broader energy infrastructure, potentially attracting further private and foreign investment as the country accelerates its transition to a more resilient, low‑carbon energy system.