Chennai plans upgrade

Chennai Petroleum Corp. Ltd. (CPCL) plans to invest US$1 billion to upgrade its 130,660 barrel-per-day refinery at Manali, Tamil Nadu. The investment program includes plans for a US$647 million residue upgrade, a US$61 million expansion of refinery capacity to 11.2 million tons per year from the current 9.5 million tons. The residue upgrade, which will increase the refinery’s distillate yield and reduce fuel oil production, is due to be completed by 2010. Chennai plans to spend US$359 million to build a 1.5 million ton diesel hydrotreater and a 150,000 ton naphtha hydrotreater at the refinery. The hydrotreaters will allow the refinery to produce fuels to European standards. (September 18, 2006)