Chennai Petroleum Corporation Ltd hopes to strengthen its bottom line with the implementation of a Rs 3,110-crore resid upgradation project.
The oil refinery, a part of the Indian Oil Corporation, will see its yield of products from crude oil go up to 75 per cent from 68 per cent. The increase in efficiency will see it on par with more modern refineries and is key to improving its performance, according to R. S. Butola, Chairman, IOC and CPCL.
A slowdown in demand, foreign exchange fluctuation and an unplanned shutdown had hit the performance of the refinery.
Addressing shareholders at the CPCL annual general meeting, he said the global slowdown has hit the refinery sector globally. IOC’s profits had also dropped drastically during the year.
The CPCL project has received environment clearance earlier this year and will be in place by December 2015.
A 42-inch new pipeline between Chennai Port and the refinery at Manali to the North of Chennai is also to be implemented. The Union Environment Ministry has recommended the Rs 126-crore project for Coastal Regulatory Zone clearance.
Addressing media persons following the AGM, Butola said IOC’s proposed Rs 4,500-crore LNG import terminal at Ennore is on track.
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