Chennai Petroleum Corporation of India announced that its board of directors has approved a proposal for a joint venture to build a $3.95 billion refinery in the southern state of Tamil Nadu.

The joint venture will include its parent company Indian Oil Corporation and financial institutions Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance Company, the company said in a stock exchange filing.

The 9 Mtpa refinery project will be located at the Cauvery Basin refinery in the Nagapattinam district. According to Reuters, it will be developed after dismantling the existing 1 MMTPA refinery. The new refinery will produce LPG, BSVI grade gasoline, diesel and jet turbine fuel, among others.

CPCL will invest Rs 25.7 crore in the joint venture for a 25% stake in the new refinery. The remaining stake will be held by Indian Oil and other seed equity investors.

The project is expected to be completed by June 2025. Recently, L&T was awarded a new engineering, procurement, construction and commissioning contract from Indian Oil Corporation. Keywords: engineering news, overseas news

Indian Oil is currently implementing the Panipat refinery expansion project to increase the refining capacity from 15MMTPA to 25MMTPA. The oil and gas onshore division of L&T Energy has been selected to supply a residual hydrocracking unit for the P-25 project.Editor/XingWentao