Chennai Petroleum Corporation Ltd (CPCL) plans to undertakenew projects to expand its portfolio and revenue streams and maintain competitive edge and sustainable growth.

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

It also plans to implement a project for the production of Group II/III lube oil base stocks. It received first-stage approval for this project. Preparations, including the basic design and engineering package (BDEP) and detailed feasibility report, are complete, and environmental clearance was obtained in January 2024. Final investment approval is pending.

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

It has also taken up a feasibility study for the installation of a new de-oiling unit to produce microcrystalline wax. The job was awarded to Engineering India Ltd in March 2024. The study is in progress and the final report is expected to be submitted by September 2024.

Water pipeline

Meanwhile, the company is laying a 22-km long new 28-inch desalination water pipeline and a new 10-inch RO reject water pipeline between 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.

In 2010, CPCL inaugurated a 5.8 MGD desalination facility at Kattupalli. The plant plays a pivotal role in fulfilling the growing water demands of the refinery’s processes. By tapping into seawater, CPCL has substantially cut down on its use of freshwater, easing the pressure on the region’s freshwater resources. CPCL was the first refinery in Asia to adopt desalinated seawater for its operations.

Providing an update on its upcoming 9 mtpa Cauvery Basin refinery at Nagapattinam in Tamil Nadu, the company said site-enabling activities are underway, laying the groundwork for the refinery’s physical establishment. The project is scheduled to be completed in 39 Months following statutory approval. Petrol and diesel of Bharat Stage-VI specifications and polypropylene as a value-added product are to be produced from the refining process.

The cost of the project is estimated at ₹36,354 crore, excluding BOO/BOOT (Build, Own, Operate and Transfer) Infrastructure facilities. CPCL and IOCL Board accorded approval for the revision in project cost and capital structure of the Joint Venture with 75 per cent equity from IOCL & 25 per cent equity from CPCL.

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