Key facts
- CPCL plans to expand its Manali refinery capacity from 210,000 bpd to 280,000 bpd.
- The company is a subsidiary of Indian Oil Corporation.
- CPCL is shifting its Cauvery Basin Refinery project focus from refining to petrochemicals.
- India's energy investment has seen significant growth, with oil refining investment up 23% in five years.
Chennai Petroleum Corporation Limited (CPCL), a subsidiary of Indian Oil Corporation, has announced plans to significantly increase the crude oil refining capacity at its Manali refinery. The refiner aims to boost capacity by one-third, from the current 210,000 barrels per day (bpd) to 280,000 bpd, according to its 2025/2026 report. The timeline for this expansion was not provided.
CPCL's facility in Manali, Chennai, is equipped to produce a range of products including fuels, lubricants, waxes, and petrochemicals. The company previously operated a smaller refinery, the Cauvery Basin Refinery (CBR) in Nagapattinam, which was decommissioned in 2019. Earlier this year, CPCL shifted the focus for the Cauvery site from a refinery upgrade to a petrochemicals complex, a move reflecting strong domestic and global demand for these products. Indian Oil Corporation holds a 75% stake in this reconfigured project.
This planned expansion aligns with broader trends in India's energy sector. The International Energy Agency (IEA) noted in its World Energy Investment 2026 report that oil refining capacity expansions are set to drive India's energy investments in the coming years, alongside solar installations. Over the last five years, India's energy investment has grown by an average of 11% annually, with solar PV investment up 25% and oil refining investment up 23% in the same period. These sectors together account for a quarter of India's energy investment growth, positioning the country for a 15% increase in refining capacity by 2030.