India’s Chennai Petroleum Corporation (CPCL) has formed a joint venture (JV) with its parent company Indian Oil Corporation (IOC) and others to build a 9 Mt/year capacity refinery, for INR316bn (US$4bn) in the Tamil Nadu state (southern India).
CPCL is already operating a small 1 Mt/year refinery at the Cauvery Basin, in the city of Nagapattinam, eastern Tamil Nadu, which will be dismantled to allow the building of the new refinery at the same location. The new refinery is expected to produce liquefied petroleum gas, BS VI quality gasoline, diesel and aviation turbine fuel.
CPCL will hold 25% stake in the new refinery for an investment of INR26bn (US$326m), while IOC and other seed equity investors including Axis Bank, HDFC, Life Insurance Co, ICICI Bank, ICICI Prudential Life Insurance Co and SBI Life Insurance Co, will hold the rest.