India's state-run Chennai Petroleum Corp has announced plans to expand its refining capacity by one-third to 280,000 barrels per day, as reported in the company's 2025-26 annual report issued on Saturday. The expansion will increase the company's current capacity from its 210,000-bpd Manali refinery located in the southern state of Tamil Nadu. According to the annual report, the company didn't specify timelines for the implementation of this capacity expansion.
The company also announced plans to reconfigure its planned Cauvery refinery project in Tamil Nadu to "enhance petrochemical intensity," as reported in the annual report. Chennai Petroleum, along with its parent company Indian Oil Corp, the country's top refiner, had previously planned to establish a 180,000-barrels-per-day Cauvery Basin refinery project. The reconfiguration aims to optimize the project's focus on petrochemical production capabilities.
Chennai Petroleum, which opened its first retail fuel outlet in March, has outlined plans to establish 300 outlets across the country, according to the annual report. The retail expansion strategy represents the company's diversification beyond its core refining operations into the retail fuel distribution sector. However, the company didn't specify timelines for the expansion of both its refining capacity and retail fuel outlets.
The expansion plans reflect Chennai Petroleum's focus on enhancing its refining capabilities and petrochemical production capacity through both existing facility upgrades and new project developments. The company's strategic positioning aligns with India's growing energy demand and the need for increased domestic refining capacity to reduce import dependence.
