Indian Oil Subsidiary CPCL Plans 280,000 Bpd Manali Refinery

Chennai Petroleum Corporation Limited, an Indian subsidiary of the top state-owned refiner Indian Oil Corporation, is set to expand its crude oil refining capacity at the Manali refinery by a third to 280,000 barrels per day. This plan, outlined in CPCL's 2025/2026 report, does not specify a timeline for the expansion. The Manali refinery is currently capable of producing fuels, lubricants, waxes, and petrochemicals, with its current capacity standing at 210,000 bpd.

In the past, CPCL owned another refinery in Nagapattinam called Cauvery Basin Refinery, but it was decommissioned in 2019 due to challenges in meeting product specifications. However, CPCL has now shifted its focus from a potential refinery upgrade to a petrochemicals complex. This strategic pivot aligns with the rising demand for petrochemicals and specialty chemicals both domestically and internationally.

The Cauvery project in Tamil Nadu will be repurposed to increase petrochemical intensity, according to the company's annual report. The International Energy Agency predicts that planned expansions in oil refining capacity, alongside solar installations, will be key drivers of India's energy investments this year and in the coming years.

In the past five years, India's energy investment has grown by an average of 11% annually, with solar PV investment up by 25% and oil refining investment jumping by 23%, contributing to a quarter of the total energy investment growth in the country. Collectively, these two sectors have been instrumental in driving India's energy investment growth by a fifth.