CPCL Board recommends investment approval for refinery at Nagapattinam

The project will help increase the refining capacity in T. N.

The Board of Directors of Chennai Petroleum Corporation Ltd. (CPCL) has recommended to the Board of Indian Oil Corporation Ltd. (IOCL), its holding company, investment approval for the construction of the 9 million metric tonnes per annum (MMTPA) refinery at its Cauvery Basin Refinery (CBR) in Nagapattinam.

The project will help increase the refining capacity in Tamil Nadu and ensure uninterrupted supplies to the southern parts of the State and neighbouring States. It will also aid in economic development of these areas.

CPCL has also notified the National Stock Exchange of its board’s recommendation for the project that would be a joint venture between IOCL and CPCL, where the two companies would hold 25% of shares each. The balance would be held by financial or strategic or public investors who would be identified later. The project would cost an estimated ₹28,980 crore, said a company source.

Now, the investment proposal awaits the approval of the board of the IOCL. The environmental clearance for the project is awaited. As far land acquisition, a team of Revenue Department officials, formed by the Tamil Nadu government, has started its work, said a company official. CPCL already owns 650 acres in the area since the CBR had been functioning there with a capacity of one MMTPA.

The first-stage approval for the project was received from CPCL/IOCL Boards in September 2017. Subsequently, selection of technology and preparation of process packages were completed. A detailed feasibility report has also been completed.

The company has plans to install a single-point mooring to source crude oil for the project. Crude oil will be transported to the refinery through a pipeline from the mooring. The bulk of the refined products will be despatched through a cross-country pipeline to Tiruchi, and the balance through coastal evacuation using nearby port facilities.

CPCL’s refinery at Manali has a refining capacity of 10.5 MMPTA. Its products include fuel, wax, naphtha and LPG. The CBR was set up in 1993 with a capacity of .5 MMPTA, which was later enhanced to 1 MMPTA. The refinery at the CBR is being replaced with a state-of-the- art refinery of 9 MMTPA.

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