Business Daily from THE HINDU group of publications
Thursday, Aug 10, 2006


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Corporate - Mergers & Acquisitions
Industry & Economy - Petroleum
CPCL to pick up stake in SPV for Chennai-Bangalore pipeline project

M. Ramesh

To invest Rs 50 crore in the 290-km pipeline


Overview
CPCL is on a mini-expansion project under which its capacity will increase by 1.7 million tonnes (mt) from the present 9.5 mt.
It will invest Rs 56 crore in putting up two more tanks to store crude oil, to meet the additional need for storage capacity after the expansion.

Chennai , Aug. 9

The Chennai Petroleum Corporation Ltd (CPCL) will pick up a stake in the company that would put up the Chennai-Bangalore pipeline project, CPCL's Managing Director, Mr K.K. Acharya, told Business Line.

The 290-km-long pipeline, meant to carry petrol, diesel and kerosene from CPCL's refinery in Chennai to "Bangalore-fed areas", will be put up by a special purpose vehicle created by CPCL's parent company, Indian Oil Corporation.

It is learnt that CPCL will invest up to Rs 50 crore in the project.

The Chennai-Bangalore pipeline is the second of two pipelines meant to evacuate the products of the refiner. The other one is the 683-km Chennai-Tiruchi-Madurai pipeline, which became operational in June.

CPCL is on a mini-expansion project under which its capacity will increase by 1.7 million tonnes (mt) from the present 9.5 mt. The Rs 330-crore project consists of two parts — de-bottlenecking of the Unit-III at a cost of Rs 130 crore, which will add 1 mt, and revamping of the old Unit-I at a cost of Rs 200 crore, which will raise capacity by another 0.7 mt.

A formal approval of the board of directors for the first part of the project will be sought on August 25, Mr Acharya said.

Once the expansion project is through the need for easy evacuation of the products will be more acutely felt. The Chennai-Bangalore pipeline will help reach the products to consumption points.

Investment in tankage

In the meantime, CPCL will invest Rs 56 crore in putting up two more tanks to store crude oil, to meet the additional need for storage capacity after the expansion. Each of the proposed two tanks can hold 50,000 kilo litres of crude oil.

At present, the company has 15 tanks, each with a capacity of 62,000 kilo litres. They can store 22 days' requirement of crude oil, the company's Director-Technical, Mr S. Chandrasekaran, said.The company will further be spending Rs 65 crore on replacing the existing 30-inch crude pipeline connecting the port and the refinery, with a 42-inch pipeline. The project is awaiting a formal right-of-way approval from the Tamil Nadu Road Development Company.

Mr Chandrasekaran said that nearly half of the 17-km pipeline would run along the Ennore expressway that is being built by the company.

The pipeline revamp project is expected to be completed by December 2007.

More Stories on : Mergers & Acquisitions | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Hyundai offers special finance scheme for Getz


CSL launches 3 vessels
Rayalaseema Hi-Strength changes name
Some vesting issues in share-based payments
Color Chips plans pref allotment
Madras Cements rejects Crisil's rating downgrade
CPCL to pick up stake in SPV for Chennai-Bangalore pipeline project
Royal Classic to ramp up manufacturing potential
`Market yet to gauge impact of overseas acquisitions'
ONGC Videsh looking for opportunities in Venezuela
ONGC plans revamp of security system
Bet on corporate social responsibility portfolio: ITC
Reliance scouts for retail space in Mumbai
Parsvnath gets in-principle nod for SEZ projects
Aurobindo Pharma gets UK nod for antidepressant
Tata Ryerson plans to hike steel processing capacity
Madras Cements on expansion mode
Ford India expects to double sales this year
CFM bags 1,270 aircraft engine orders till June
Innova captures 15 pc market share in the South
Large corporates not affected by interest rate hikes


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line