Chennai Petroleum plans capex of Rs.760 crore this fiscal

Chennai, Aug 14 (IANS) Oil refining company Chennai Petroleum Corporation Ltd (CPCL) plans a capital expenditure of Rs.760 crore this fiscal on various projects, said a top company official.

Speaking to reporters here Tuesday, CPCL managing director A.S. Basu said: "Nearly 50 percent of the investment will go towards the company's resid upgradation project. The company will also invest in laying the crude oil pipeline connecting Chennai port with the refinery."

The resid upgradation project, expected to go on stream next year, is awaiting the environmental clearance from the central government, he said.

He said once the environmental clearance is obtained, the project would be completed in 30 months time.

The project would help CPCL to increase its gross refinery margin by around $1-2 per barrel, said D. Lilly, director (finance).

The crude oil pipeline project would involve an outlay of around Rs.126 crore replacing the existing pipeline but is waiting for the Coastal Regulatory Zone (CRZ) nod from the central government.