Chennai Petroleum to double Nagapatinam capacity
Indian Oil has signed a five-year marketing agreement to sell the entire production of Chennai Petroleum's 12,000 barrels a day refinery at Nagapatinam in southern India.
The agreement, signed on 3rd May, gives Indian Oil rights to the refinery's product mix of diesel, LPG, kerosene, naphtha and LSHS. On 27th March Chennai Petroleum became a fully owned subsidiary of Indian Oil when the corporation paid $144m for the government's 51.8% stake.
In a press release, Chennai Petroleum said it will double capacity at Nagapatinam to 24,000 b/d by the year-end. The company also operates a bigger 124,000 b/d refinery at nearby Manali.