Chennai Petroelum Corporation (CPCL) is setting up a 9 million mtpa refinery at its existing facility at Nagapattinam in Tamil Nadu, the foundation stone for which was laid by Prime Minister Narendra Modi recently. The proposed refinery-cum-petrochemical complex will produce petrol and diesel meeting BS-VI specifications and polypylene as a value-added product. “Around 80% of the requirements for the refinery will be sourced indigenously,” says Rajeev Ailawadi, Director (Finance) and incharge Managing Director. Elaborating, Mr Ailawadi says, “This will be a joint venture between Indian Oil Corporation (IOC) and CPCL at an estimated cost of Rs 31,500 crore. Both companies will have a combined equity of 50% (25% each) and the balance will be held by financial/strategic public investors.” Incidentally, IOC holds a controlling stake of 51.89 per cent in CPCL.

Referring to the need for expanding the refinery, P Jayadevan, Executive Director, IOC, says, “The demand for oil is increasing and it is expected to reach a peak in India by 2040-45. By that time, electric vehicles are expected to account for 30% of the vehicle population. Moreover, if need be, the refinery can switch over to chemicals from fuel.” CPCL’s existing refinery at Manali near Chennai was started way back in 1969 with a 2.5 mtpa refining capacity which has now reached 12.1 mtpa with value-added petroleum products. It is playing the vital role of a mother industry, supplying feedstock to neighbouring industries, and is considered one of the most complex and integrated refineries in India.

LOW-SULPHUR GASOLINE

Pointing out that “the company has recently commissioned its new FCC gasoline desulphurisation unit of 0.6 mtpa capacity at a cost of around Rs 500 crore,” Mr Allawadi adds that “the unit will produce low sulphur, environmentfriendly gasoline to reduce emissions.” CPCL has also successfully completed a Regassified Liquefied Natural Gas (R-LNG) project by taking R-LNG as fuel and feed. He also reveals that in order to raise funds, the company’s board has approved an issue of secured/unsecured non-convertible redeemable domestic bonds/debentures/notes etc. up to Rs 2,500 crore during the current and next fiscal year on a private placement basis.