New Delhi, Dec 18: Chennai Petroleum Corporation Ltd (CPCL) has unveiled an ambitious expansion and diversification plan, proposing to raise the capacity of its Manali refinery in Tamil Nadu to 280,000 barrels per day (bpd) from the existing 210,000 bpd, as part of a broader growth strategy aimed at transforming the company into an integrated energy player.
The Chennai based refiner will also enter the fuel retail business, with plans to establish 300 fuel stations across the country by mid-2028, marking a significant shift from its current model of selling most of its transportation fuels to its parent company.
Managing Director H. Shankar described the strategy as a major repositioning of the firm. “CPCL 2.0 will be a different version of what industry has seen it as a standalone refinery,” he said, highlighting the company’s intent to move beyond its traditional refining role.
A feasibility study for the Manali refinery expansion is expected to be completed by October 2026, which will determine the cost estimates and configuration of the new processing units, Shankar said.
CPCL is a subsidiary of state-run Indian Oil Corporation (IOC) and currently supplies the bulk of its diesel and petrol output to IOC, which operates one of the country’s largest fuel retail networks.
In parallel, CPCL is advancing plans for a new 180,000 bpd refinery with integrated petrochemical units at Nagapattinam in southern Tamil Nadu. The company is in the process of finalising the configuration of the proposed project, which is expected to further strengthen its downstream presence.
“Under the new growth initiative, the Chennai-based company will foray into the retail business with 300 fuel stations by mid-2028,” Shankar said, underscoring CPCL’s push to build its own marketing footprint.
The expansion plans come as India’s refining sector ramps up capacity to meet rising domestic fuel demand and strengthen its position in global energy markets.
