Chennai Petroleum Corporation Limited (CPCL) has created a joint venture with its parent company Indian Oil Corporation Limited (IOCL) and others to construct a 9 million metric tonne per annum (MMTPA) refinery at a cost of $3.95bn (Rs315.80bn) in Indian state of Tamil Nadu, reported Reuters.
National Iranian Oil Company has around 15% stake in CPCL.
CPCL was running a refinery at the Cauvery Basin at Nagapattinam.
The new facility will also be built at Nagapattinam.
It will be built following the dismantling of the current 1 MMTPA refinery, according to CPCL’s website.
This new facility will generate liquefied petroleum gas, BS VI quality gasoline, diesel and aviation turbine fuel.
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CPCL will have 25% stake in the new refinery for an investment of $320m (Rs25.70bn), while IOCL and other seed equity investors including Axis Bank , HDFC Life Insurance , ICICI Bank ,ICICI Prudential Life Insurance and SBI Life Insurance will own the remaining interest.
IOCL owned a 51.89% stake in CPCL, as of the end of June this year.
In 2021, PTI reported that IOCL had plans to invest $13.5bn over the next five years to increase its annual refining capacity by over 25 million metric tonnes to 106.7 million tonnes.
Image: The new facility will also be built at Nagapattinam in the Indian state of Tamil Nadu. Credit: John R Perry from Pixabay.