IOC set to expand Chennai refinery in JV

Indian Oil Corporation (IOC) is set to expand through a joint venture with its subsidiary Chennai Petroleum Corporation Ltd (CPCL) and strategic financial investors, at a cost of Rs 31,500 crore, said Chairman Shrikant Madhav Vaidya.

IOC and CPCL will hold a 25% stake each in the joint venture that will set up the 9 million tonne per year refinery. The remaining 50% equity would be with financial investors, the Chairman told media sources.

CPCL also plans to build a 475,000 tonne per annum capacity petrochemical plant. A detailed feasibility report for the expansion project is underway.

Formerly known as Madras Refineries Ltd, CPCL was formed as a joint venture in 1965 between the Government of India, AMOCO, and the National Iranian Oil Corporation (NIOC) having a shareholding in the ratio of 74%, 13%, and 13% respectively.

As we have reported earlier, Indian Oil is also building a new oil terminal in Vallur, north of Chennai, along with a captive jetty based near Kamarajar (Ennore) port. The aim is primarily to handle its petroleum products.

Image Source: Facebook/ Chennai Petroleum Corporation Limited


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