CPCL Plans Manali Refinery Expansion to 14 MTPA Amid High Utilization.

Chennai Petroleum Corporation Ltd (CPCL), a standalone refining arm of Indian Oil Corporation, is exploring a substantial capacity expansion of its Manali plant in North Chennai, aiming to increase its refining capability from the current 10.5 million tonnes (MT) to 14 MT. This move comes as the refinery consistently operates at exceptionally high utilization rates, frequently exceeding 110 percent.

In the first quarter of the current fiscal year, CPCL reported an impressive 114 percent capacity utilization at the Manali facility, highlighting the pressing need for expansion to meet demand and optimize operations.

"We have initiated internal studies to expand our refining capacity," CPCL Managing Director H Shankar informed businessline. "If we are to sustain 115 percent capacity utilization year-round, we will need to invest in hardware, tankage, and infrastructure."

Shankar added that a feasibility study for the expansion was launched last month, and the company anticipates having a clearer understanding of project specifics, including the estimated expenditure, within the next couple of months. The proposed expansion underscores CPCL's strategy to enhance its operational efficiency and cater to growing energy demands in the region.