Chennai Petroleum Corporation Limited and Indian Oil Corporation
are open for having a strategic investor as their partner
for their 15 million tonne per annum (mtpa) grass root
greenfield refinery cum petrochemical project planned
at Ennore, Chennai.
to Chennai Petroleum''s managing director K K Acharya,
"We have selected Engineers India Limited to study
the process configuration and prefeasibility studies.
Their report is expected this June."
Chennai Petroleum is a refinery company, it decided to
add petrochemical project to make the project commercially
viable. The whole project would involve an outlay of Rs35,000
to director, finance, N C Sridharan, the investment requirement
for the project would peak only during fiscal 2008-09.
"We have ample time to decide on the strategic investor.
Projects like this would have a debt: equity ratio of
2:1." Similarly it has not been decided whether the
project should be promoted under a new joint venture company
or under Chennai Petroleum.
the company has asked the Tamil Nadu government for 3000
acres land at Ennore.
mega investment apart, Chennai Petroleum has chalked out
around Rs6,000 crore worth of projects over the next five
years. The major project being the resid upgradation project
at its Manali refinery needing an outlay of Rs3,000 crore.
The refinery hopes to increase distillates yield by 10
per cent after this project. According to Acharya, pre-project
activities have begun. The project will have a delayed
coker unit along with associated facilities and is expected
to go on stream in 2010.
refinery company is also planning a Rs2000 crore investment
to meet the Euro IV norms for auto fuel quality. "For
meeting the Euro IV norms of motor spirit and high speed
diesel before April 1, 2010 the company has taken up three
projects (a) Progression to a continuous catalytic reformer
(b) installation of new diesel hydro treating unit and
(c) installation of a new isomerisation unit." The
company has completed the licenser selection process and
the project is expected to be commissioned by the end
company has also taken up a project to de-bottleneck the
refinery III unit at Manali to increase the capacity by
1 mtpa to 4 mtpa at an outlay of Rs134 crore. On completion
the total refining capacity at Manali would go up to 10.5
mtpa by March 2009. The other projects are: (a) a propylene
recovery unit at Manali at an outlay of Rs300 crore (b)
laying of new 42" crude oil pipeline from Chennai
Port to Manali (c) setting up of 17.6MW capacity windmill
farm at Palghat pass near Pollachi at an investment of
have been placed for the windmills with Enercon. Already
four mills have been commissioned this month and the project
will be fully operational this August," said Acharya.
the company closed FY07 with a turnover of Rs29349 crore
and a net profit of Rs565 crore as against Rs25409 crore
and Rs481 crore respectively. The gross refining margin
for the year was $5. The company board has recommended
a dividend of 120 per cent.
about the company''s performance for the last fiscal Acharya
said, "The throughput achieved was 10.40 mtpa as
against 10.36 mtpa the previous year. The Manali refinery
operated at 103 per cent of design capacity." During
the year under review, the Cauvery Basin refinery processed
highest ever natural gas of 71.6 tmt for LPG recovery,
compared to the previous best of 63.9 TMT during the year
to him the company was able to maintain the distillate
yield even at the enhanced crude throughput. "This
was possible by higher secondary processing," he
added. As a step towards widening the crude oil basket,
Chennai Petroleum processed three new crude oils last
fiscal viz Marib Light from Yemen, Azeri Light from Azerbaijan
and Girassol from Angola.
company''s efforts to bring down the energy index at its
Manali refinery is yielding good results. Last year the
energy index was 76. "We have identified 22 energy
conservation actions to bring down the energy consumption
index to about 72 in next two to three years," remarked
Acharya. An external consultant has been appointed for
its integrated refinery business improvement programme.
to him, the boom in the aviation sector has resulted in
25 per cent growth in the consumption of aviation turbine
fuel. While Chennai Petroleum has sent its products to
markets like Kolkatta and Mumbai within India, it has
exported products worth Rs1533 crore to countries like
China, Japan, Malaysia, Singapore and Bangladesh.