Chennai Petroleum Corp (CPCL), a subsidiary of IndianOil Corp has received environment clearance for upgradation of Manali refinery in Chennai district of Tamil Nadu.

The MoEF has accorded the approval to the upgradation project which is expected to cost Rs 3,350 crore. The plan includes revamp of the existing NHT/CRU to a continuous catalytic reformer will be undertaken to achieve higher yields of MS and auto fuel quality upgradation projects to meet Euro-IV specifications. The expansion project includes a coker unit (2.2 million tpa). CPCL is also proposing to set up a petroleum coke storage facility about 3.5 km from the refinery.

The project also includes CDU/VDU-III upgradation of (3.7 million tpa to 4.3 million tpa expansion) and Diesel hydro-treating unit of 1.5 million tpa, new Naptha hydro-treating unit of 21 million tpa, sour water striper of 15 m/3hr, Sulpher recovery unit revamp from 60 million tpa to 73.2 million tpa.

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The refinery will produce more high value distillates and enable the company to process more of the cheaper high-sulphurous crude. It will help process heavier, high sulphur crude, which is also cheaper. The distillate yield will go up by seven per cent and it will mostly be in the form of more petrol, diesel and liquefied petroleum gas.

The project is expected to be commissioned by 2016.