Once referred to the Board of Industrial and Financial Reconstruction (BIFR), Chennai Petroleum Corporation Limited (CPCL) has managed to report the profit for the second year in a row. Factors behind the turnaround include operational performance and favourable market and price conditions.
Gross Refining Margin improved to $6.42 per barrel as compared to $6.05 per barrel in the previous financial year. With an optimistic outlook, CPCL has lined up brownfield projects worth Rs 24 billion, besides a Greenfield project at Rs 270 billion at Cauvery Basin. The Chennai-based company has roped in Engineers India Ltd to do a feasibility report. The projects, slated for commissioning during the third quarter of 2018-19, include a new crude oil pipeline to replace the existing 46-year-old pipeline between Chennai Port and Manali Refinery.
Sajiv Singh, chairman, CPCL said that it has achieved a good physical performance in 2017-18 including highest ever crude oil output of 10.789 million metric tonnes per annum (MMTPA) as against the previous best of 10.779 MMTPA during 2014-15 (FY15).
Highest ever distillates yield of 73.2 per cent as compared to the previous best of 72.6 per cent in 2016-17 (FY17).
Lowest ever Energy Intensity Index (EII) was 100.7 for Manali Refinery as against the previous lowest of 101.3 in the year 2016-17. Highest ever Motor Spirit production of 1,107 thousand metric tonnes (TMT) was achieved as compared to the previous best of 1,105 TMT in 2016-17.
Highest ever high-speed diesel production of 4,599 TMT as against the previous best of 4,474 TMT in 2014-15.
Energy conservation measures implemented during the year resulted in an annualised benefit of 11,000 SRFT (standard refinery fuel tonnes). Production and sale of petcoke commenced in December 2017 with the commissioning of Delayed Coker Unit.
These factors have led to further improvement in financial performance including 9 per cent growth in turnover at Rs 441.35 billion as compared to Rs 405.86 billion in the previous financial year due to increase in both the number of products sold and price variation.
As part of BS-VI auto fuels quality upgradation project, CPCL is revamping the existing Diesel Hydro-Treating (DHDT) unit to increase its capacity from 1.8 to 2.4 MMTPA along with a new Sulphur Recovery unit.
A new 0.6 MMTPA capacity Fluid Catalytic Cracking (FCC) gasoline desulphurisation unit with associated facilities is also being installed to comply with the directives of the Government of India (GoI) for the supply of diesel and petrol meeting BS-VI quality norms with effect from 1st April 2020. The estimated cost of the project is Rs 18.58 billion and is expected to be mechanically completed by September 2019.
CPCL is implementing a Re-gassified LNG (R-LNG) project at an estimated cost of Rs 4.21 billion to utilise R-LNG as feed in the Hydrogen Generation Units and as fuel in Hydrogen Reformer, Gas Turbines, Utility Boilers & Process Heaters. The project is expected to be mechanically completed in phases from November 2018 onwards.