Indian Oil to build new terminal to move products from CPCL refinery

Indian Oil Corporation (IOC) plans to build a new oil terminal at Vallur and a captive jetty near Kamarajar Port to handle petroleum products. The new terminal is expected to be completed by 2023. 

The new site at Vallur, away from the city, has been identified for re-siting the current terminals as it will enhance operational flexibility. Currently, it is difficult to operate and move products from Korukkupet and Tondiarpet Terminals located between Chennai Port and the Chennai Petroleum Corp. Limited (CPCL) Refinery in Manali, Chennai. 

The new Vallur terminal, which will have a storage capacity of 200,000 kilo litres, would receive products from the CPCL Refinery and also through a petroleum jetty at Kamarajar Port. CPCL is the largest oil refinery in South India, with 11.5 million metric tons per annum (MMTPA) of capacity. CPCL has two refineries in the southern state of Tamil Nadu — Manali, Chennai with 10.5 MMTPA and Cauvery Basin with 1.0 MMTPA. CPCL is a group company of Indian Oil Corp.

The terminal in Vallur will be built in an area spanning 100 acres near Kamarajar Port, to supply petrol, diesel, kerosene and aviation fuel by road to Chennai and the adjoining districts and through pipelines to Trichy, Salem, Madurai and Asanur. The terminal will have a facility to fill trucks in 24 bays at a time. 

Built at an estimated cost of INR900 crore (USD122 million), the terminal will also have the operational flexibility to receive petroleum products through tanker ships from India’s Chennai Port during an emergency.

The terminal can also supply outside the state to Chittoor and Bengaluru. The terminal can facilitate moving out surplus refinery production to the Kamarajar Port as it is to be located between the port and the refinery.  

The project is part of the three Memorandum of Understandings (MoU) signed with the Industrial Guidance Bureau during the Global Investors’ Meet held in Chennai in 2019. The laying of the foundation stone was held recently by Home Minister Amit Shah during his visit to the city.