CPCL takes up Rs 3,110 cr residue upgradation project

Company has also received approval for the proposed 42 inch new crude oil pipeline in Tamil Nadu

Chennai Petroleum Corporation Ltd, an IOC group firm, has undertaken a 'Resid Upgradation Project' at a total outlay of Rs 3,110 crore that will be completed by the end of next year, a top official said today.

"To increase the value addition by maximisation of distillates production, your company has embarked on setting up Resid Upgradation Project, using the vacuum Residue as the feedstock available in the company," Indian Oil Corporation Ltd Chairman B Ashok said at the company's 48th Annual General Meeting here.

"The total outlay for the project is estimated at Rs 3,110 crore and the project is scheduled for completion by December 2015", he said.

The implementation of the project is "progressing in line with project schedule", he said, adding that the delivery of construction materials at project site would commence "shortly".

Besides the Resid project, he said the company had received the coastal regulatory zone (CRZ) approval for the proposed 42 inch new crude oil pipeline in Tamil Nadu.

"Your company has received the CRZ clearance for proposed 42" new crude oil pipeline with enhanced safety features, as a replacement for existing old crude pipeline, which will reduce pumping time and demurrage incidence," he said.

The estimated cost of the pipeline is Rs 257 crore and schedule time for completion 18 months, he said.

CPCL is also implementing a "Mounded Bullet Storage" facility for LPG and Petrochemical products, as part of risk mitigation measures and in line with norms prescribed by Oil Industry Safety Directorate at an estimated cost of Rs 279 crore, he said, adding that it was expected to be 'mechanically completed' by the end of 2014.

The company had also initiated measures to achieve improvement in both physical and financial performance.