Indian Oil Group Company Chennai Petroleum Corporation will lay a new crude oil pipeline from Chennai Port Trust to Manali Refinery at an estimated cost of Rs 258 crore, a top official said.
The pipeline with additional safety features would be used as a replacement for the existing 30-inch pipeline, which was more than 45 years old, IOCL Chairman Sanjiv Singh said at the company's 51st Annual General Meeting here.
He said the company has already laid 7.5 km of crude oil pipeline till July 2017.
"All efforts are being made to mechanically complete this project by February 2018", he said.
Singh said that the new project would improve the 'safety and security aspects of crude transportation'.
On the intiatives taken to provide BS-VI automobile fuel, he said the existing diesel hydro-treating unit were being revamped to increase the capacity to 2.4 MMTPA (million metric tonne per annum) from the current 1.8 MMTPA.
"Further to meet the requirements of BS-VI petrol norms, installation of new FCC Gasoline Desulphurisation unit with a capacity of 0.6 MMTPA along with other associated facitlies is under implementation", he said.
The project was expected to be completed by September 2019, he said.
The company also proposed to revamp the hydrogen generation units, gas turbines and boiler at the Manali refinery at cost of Rs 421 crore to utilise natural gas as feed in hydrogen units and also as fuel, he said.
"The natural gas will be supplied by the LNG project being set up by IndianOil Corporation at Ennore. The project is expected to be mechanically completed phase wise from next year end onwards.", he said.
On the Manali Refinery Resid Upgradation work, he said the project has been taken up at an estimated cost of Rs 3,110 crore to increase distillate yield and maximise the processing of high-sulphur crudes and improve profitability.
"The project consists of new secondary processing units like Delayed Coker Unit, Sulphur Recovery Unit, revamp of once-through hydrocracker unit and addition of association utilities and offsite facilities", he said.
The commissioning of Delayed Coker Unit and other facilities would start from September 2017, he added.