State-run Chennai Petroleum Corporation, in which Iran has a stake, hopes to invest Rs 20,000 crore for a nine-fold capacity boost at one of its refineries in India.
As per ‘Bloomberg’ report, the unit of Indian Corporation plans to expand capacity at the Nagapattinam plant in Tamil Nadu to as much as 180,000 barrels per day from present 20,000 barrels.
"We will complete studying the expansion plan by early next year and then seek approval from the board," he said in an interview in New Delhi. "We have land available at the refinery site for expansion, " it quoted Gautam Roy, the managing director of Chennai Petroleum as saying
Chennai Petroleum along with its parent Indian Oil, Bharat Petroleum Corporation and Hindustan Petroleum Corporation are racing to add refining capacity amid rising fuel consumption in the country, which is expected to surpass all other nations in few decades.
Country's 23 plants have a total capacity of 230 million metric tons per year, while total fuel demand was 183.5 million tons during the financial year that ended on March 31, said oil ministry.
Increasing demand amidst low oil prices has enhanced earnings of Chennai Petroleum in the 12 months through March 31.
Profits from turning crude into petroleum products boost investments in projects such as capacity expansion.
"The capacity expansion will help increase the availability of petroleum products in Tamil Nadu and other southern states," Roy said.