Chennai Petroleum Plans Capacity Expansion of Manali Refinery to 280,000 BPD
Chennai Petroleum Corporation Limited (CPCL), a subsidiary of Indian Oil Corporation Limited, plans to raise the crude oil refining capacity of its Manali refinery in Chennai from 210,000 barrels per day (bpd) to 280,000 bpd, an increase of about a third. The plan was disclosed in the company's 2025-26 annual report, though no timeline has been given for completion.
CPCL managing director H Shankar has said the company expects a feasibility study on the expansion to be ready by October 2026, which will determine the cost and configuration of the new units. Executives have referred to the upgraded refinery plan as "CPCL 2.0," moving away from its earlier standalone-refinery configuration.
The Manali facility currently produces transportation fuels, lubricants, waxes and petrochemical feedstocks. Alongside the expansion, CPCL plans to enter fuel retailing, with 300 outlets planned by mid-2028.
Separately, CPCL is redesigning its earlier Cauvery Basin Refinery project in Nagapattinam, Tamil Nadu. Instead of rebuilding it as a 180,000 bpd refinery, the company is reconfiguring the project into a petrochemicals complex with greater petrochemical intensity, in which parent company Indian Oil Corporation will hold a 75% stake. The configuration of this unit is still being finalised.