CPCL’s residue upgradation refinery inaugurated

Dharmendra Pradhan, Union Minister of Petroleum and Natural Gas, inaugurated Chennai Petroleum Corporation Ltd’s (CPCL) residue upgradation project. The value addition project, for upgradation of the residue of crude oil to high-value distillates such as diesel and LPG, will improve the margins and profitability of CPCL.

About 70 percent of gas and liquid distillates, with around 30 percent petroleum coke, constitute the main products from this project. An overall increase of 700 TMT of LPG and diesel is expected on an annual basis. The residue project comprises a delayed coker unit of 2.2 million tonnes a year, a coker LPG treatment unit of capacity 8.8 TPH (total petroleum hydrocarbons), sulphur recovery unit of 200 tonnes per day capacity, associated other process units, utilities and offsite facilities.

“The project is a major step in improving the efficiency of the refinery, which will be able to process cheaper and high sulphur crude now,” said Sanjiv Singh, Chairman, Indian Oil Corporation Ltd.

The refinery will reduce the production of fuel oil and increase the percentage of high sulphur crude oil processing in the crude mix, resulting in lesser feed cost.