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Chennai Petroleum Corpn to infuse Rs 1,850 cr in BS VI auto fuel

The pre-commissioning activities have already commenced

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Chennai Petroleum Corporation, Indian Oil Corporation, IOCL, Diesel hydro-treating, BS VI revamp project, FCC gasoline de-sulphurisation unit, Sulphur recovery block, Natural gas, Liquid fuel, Naphtha, R-LNG conversion, Hydrogen Generation Unit, CO2 emissions, Cauvery Basin Refinery, Nagapattinam, IOC pipeline network, Environmental clearance

The Chennai Petroleum Corporation (CPCL), a subsidiary of the Indian Oil Corporation (IOC), is planning to invest about Rs 1,850 crore in BS VI auto fuels to cater to the demand in southern parts of the country.

In November 2019, the company completed the diesel hydro-treating (DHDT) BS VI revamp project (from 1.8 to 2.4 million tpa), a new FCC gasoline de-sulphurisation unit of 0.6 million tpa capacity. The pre-commissioning activities have already commenced and mechanical completion of the unit is expected by Q2/FY21. The commissioning of the project is expected by Q3/FY21.

A new sulphur recovery block is expected to be completed by Q4/FY21. CPCL has undertaken a project to use natural gas as an internal fuel, replacing the existing materials like liquid fuel and naphtha, at an estimated cost of Rs 421 crore. Apart from improving profitability, implementation of the project will also improve the environment conditions. CPCL has successfully commissioned RLNG in three GTs (GT 2, 3 and 4), and two boilers (Boiler 1 and 2) during FY20. The remaining equipment will be converted into RLNG in 2021.

The company has completed R-LNG conversion in one of the Hydrogen Generation Unit (HGU-214) by taking R-LNG as fuel and feed. R-LNG has been taken as fuel in Ref-III furnaces, three out of five gas turbines and three out of six utility boilers. R-LNG conversion in the remaining gas turbines and utility boilers, and HGU-205 is expected to be completed by Q4/FY21 in phases. The conversion will have a positive impact on carbon footprint, with reduction in CO2 emissions.

It will reduce specific feed and fuel consumption for production of hydrogen. It will also enable processing of additional high sulphur crude. The total cost of the project is estimated at about Rs 350 crore. On the proposed new nine million tpa refinery at Cauvery Basin Refinery, Nagapattinam, which is proposed along with holding company IOC. The project will be an integrated state-of-the-art modern refinery-cum-petrochemical complex, including a polypropylene unit, to start with.

The process packages have been finalised and detailed feasibility report (DFR) for the project has been completed. The project also includes SPM facility for receipt of crude oil and desalination plant for meeting water requirements of the refinery. The Board of CPCL at a meeting held on 3 June 2020 recommended the project to the IOC Board. The estimated cost of the project is around Rs 28,983 crore. The project will also benefit from the land already in possession by CPCL. The proximity to highways and coastal location of the refinery are added advantages.

The project location is also apt for crude oil receipt by installation of SPM facility and product evacuation through the nearby port and also by connectivity to IOC’s pipeline network. The project is in line with the expected growth in demand for petroleum products in the southern region. Environmental clearance for the project is also at an advanced stage of review and approval by MoEF and CC. Cauvery Basin nine million tpa project will also stand as an anchor for feedstock generation for downstream industries.

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