"CPCL to Launch New Projects to Expand Portfolio and Revenue Streams".

Chennai Petroleum Corporation Ltd (CPCL) is set to undertake several new projects to expand its portfolio and revenue streams, ensuring a competitive edge and sustainable growth.

One of the key projects involves producing pharma-grade hexane in the isomerisation unit at an estimated cost of ₹67.15 crore. This project, which includes replacing existing conventional column internals with divided wall column (DWC) technology, aims to produce 35,000 mtpa of pharma-grade hexane and is expected to be completed this quarter, according to the company’s annual report for FY24.

CPCL also plans to implement a project for the production of Group II/III lube oil base stocks. The project has received first-stage approval, with preparations including the basic design and engineering package (BDEP) and a detailed feasibility report completed, along with environmental clearance obtained in January 2024. Final investment approval is pending.

To enhance its Fluid Catalytic Cracking Unit (FCCU) and maximize propylene production, CPCL is conducting a revamp scoping study. The study, awarded to UOP last year, is in progress, with the final report expected this month.

Additionally, CPCL is undertaking a feasibility study for a new de-oiling unit to produce microcrystalline wax. Engineering India Ltd was awarded this project in March 2024, and the final report is expected by September 2024.

In infrastructure development, CPCL is laying a new 22-km, 28-inch desalination water pipeline and a 10-inch RO reject water pipeline between the Manali Refinery and its desalination plant at Ennore, at an estimated cost of ₹205 crore. This project is expected to be completed by September 2025.

CPCL’s 5.8 MGD desalination facility at Kattupalli, inaugurated in 2010, plays a crucial role in meeting the refinery’s water demands by utilizing seawater and reducing freshwater consumption, easing pressure on the region's resources. CPCL was the first refinery in Asia to adopt desalinated seawater for its operations.

Regarding its upcoming 9 mtpa Cauvery Basin refinery at Nagapattinam in Tamil Nadu, CPCL reported that site-enabling activities are underway. The project, scheduled to be completed 39 months after statutory approval, will produce Bharat Stage-VI petrol and diesel and polypropylene as a value-added product. The project cost is estimated at ₹36,354 crore, excluding BOO/BOOT infrastructure facilities, with CPCL and IOCL boards approving the revised project cost and capital structure, featuring 75% equity from IOCL and 25% from CPCL.

HBL