Chennai Petroleum to expand capacity by 6 million tonnes
18 May 2010
Oil major Indian Oil Corporation-owned Chennai Petroleum Corporation Limited (CPCL) today announced plans to expand its annual refining capacity by 6 million tonnes, at a cost of Rs10,000 crore.
Company managing director K Balachandran said that though the proposed expansion would be actually for 9 million tonnes, it would be offset by the scrapping of the outdated first unit of the refinery, that has installed capacity for refining 3 million tonnes of crude oil.
Balachandran made the announcement while releasing the company's financial results at a media conference in Chennai.
The proposed expansion would take the total effective capacity of the refinery to 16 million tonnes.
Balachandran said that the CPCL was also taking up the proposal for laying a new 42" crude oil pipeline vigorously. The pipeline would be laid from Chennai Port to its Manali Refinery.
The new route, along the Chennai-Ennore Express Corridor would be adjacent to the shore and the proposal for the 11.5 km pipeline is at an advanced stage of obtaining of clearances. It would be completed in under a year at a cost of about Rs100 crore.
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