Chennai Petroleum Corporation Limited’s (CPCL) Financial and Physical performance for the year 2010-11 is given below:

Financial Performance

The Gross Sales for the year 2010-11 was 38,128.26 Crore as against 29,183.84 crore in the previous year.

The Profit Before Tax for 2010-11 is 763.52 cr as against 683.76 cr in the previous year. The Profit After Tax (PAT) for the current year is 511.52 cr as against 603.22 cr for the previous year.

CPCL achieved GRM of US $5.02 per barrel for the year 2010-11, net of under recoveries, as against US $ 4.75 per barrel for 2009-10.

The Board of Directors of CPCL has recommended a dividend of 120% for 2010-11.

Physical Performance

During 2010-11, CPCL achieved a Crude thruput of 10.73 Million Metric Tonnes (MMT) (highest ever) and also achieved the highest ever production of MS – 866 Thousand Metric Tonnes (TMT) – (Previous best – 845 TMT in 2008-09).

Achieved highest ever FCCU thruput at 1006 TMT (Previous best – 917 TMT in 2009-10).Achieved highest ever OHCU thruput at 1995 TMT (Previous best – 1856 TMT in 2008-09).

In Cauvery Basin Refinery (CBR), the highest ever gas intake of 33 TMT was achieved and resulted in highest ever Propane production of 1800 MT (Previous best 1763 MT 2009-10).

As a step towards widening the crude oil basket, CPCL processed 2 new imported crudes – Siri Export from Iran and Coco from Congo.

Euro-IV MS production commenced from June 2010.

Projects: New Units Commissioned in 2010-11

Crude Distillation Unit-III was revamped from 3.0 MMTPA to 4.0 MMTPA successfully and commissioned in May 2010 at a cost of 200.41 crore. With this, the Manali Refinery capacity has gone up 9.5 MMTPA to 10.5 MMTPA and CPCL’s total installed capacity (including CBR) has gone upto 11.5 MMTPA.

Catalytic Reformer Unit (Semi Regenerative) was revamped to Continuous Catalytic Regeneration unit (CCRU) and successfully commissioned in Q1 of 2010-11at a cost of 272.77 crore. This project will enhance MS production from Manali Refinery.

The Naphtha Hydro-treater / Isomerisation (NHDT/ISOM) unit for MS production of the EURO-IV Quality has been successfully commissioned in Nov 2010.

Innovative Project Execution - Hot tapping of Flare line:

The flare line from new Diesel Hydro-Treating Unit was required to be hooked up with the existing Refinery-I flare header. This was achieved ‘on-line’ through an innovative hot tapping approach. This innovative approach of CPCL has avoided a 16 day shutdown of Refinery-I.

Marketing

Higher sales was achieved during 2010-11 on the products directly marketed by CPCL. D irect sale of products was to the tune of 428 TMT, marking a growth of 12.7% over the previous year. The value of the same is 1765.22 Cr. An e xport of 716 TMT of Products was also achieved during the year 2010-11, the value of which was 3209 Cr

Product Pipeline

Chennai-Tiruchi-Madurai Pipeline (CTMPL) has achieved the highest thruput of 1960 TMT.

CAPEX plans:

The Capex plan for the year 2011-12 is 1335 crore (includes Plan outlay of 1053.90 crore).

MAJOR PROJECTS UNDER IMPLEMENTATION

  • Euro IV Auto Fuels Project :

As per the Auto Fuel Policy of the Government of India, Auto Fuel Quality Upgradation Project (to produce MS/HSD meeting Euro-IV specifications) has been undertaken at an outlay of 2615.69 crore in Manali Refinery

Euro-IV Preparedness on Auto Fuels – Offsites & Utilities & HGU
  • New DHDT Unit is under commissioning.
  • Utilities and Offsite packages are in progress and expected to be completed by September 2011
  • A new Hydrogen Generation Unit is under construction and expected to be mechanically completed by Dec. 2011.
Revamp of existing Crude Distillation Unit / Vacuum Distillation Unit - II from 3.7 to 4.3 MMTPA:

To enhance the unit capacity from 3.7 MMTPA to 4.3 MMTPA, a project is being implemented at an estimated cost of 333.99 Cr. This project is expected to be commissioned by first quarter of 2012-13.

Resid up-gradation Project

To improve the distillate yield of Manali refinery, Resid Upgradation Project has been approved. The Process Packages for all the Process units have been completed. Investment approvals have been obtained. Environment clearance is awaited. Anticipated completion of the project is 33 months from the date of environment clearance. The project cost is 3110.36 crore.

New Crude Oil Pipeline

This Project is envisaged to replace the existing 30” Crude Oil Pipeline by laying a new 42” Crude Oil Pipeline from Chennai Port to Manali Refinery, at a cost of 126 cr. The final central Coastal Regulation Zone (CRZ) clearance for this project is awaited. The Project schedule is 18 months from Zero date.

FUTURE PROJECTS

Brownfield Expansion Project

CPCL is planning to set up a brownfield 9MMTPA Refinery to replace the Refinery-I unit (2.8 MMTPA) at Manali. The order-of-magnitude cost of this brown-field project is about 14,000 crore. The process configuration will be chosen in such a way that the new units are integrated with the existing refinery complex for better energy/utilities management and to achieve optimal product pattern. CPCL is assessing various options available for locating this project and the Project Feasibility Report is under finalization.

Natural Gas

IOC has proposed to put up an LNG Terminal at Ennore with a capacity of 5 MMTPA at an estimated cost of 4320 Cr for supply of regassified natural gas. CPCL is gearing itself for receiving Natural Gas for its heaters and boilers and also for its Power Plant and Hydrogen Generation Units. CPCL and IOC have signed Heads of Agreement for supply of LNG.

Projects at CBR

CBR is implementing a crude oil pipeline project from Karaikkal Port connecting to the existing line to refinery at Panangudi at a cost of 10.0 Cr

Product pipeline to Trichy:

A 114 KM product pipeline between CPCL-CBR and IOCL – Trichy is being implemented by IOCL at an estimated cost of 98 Crore for reducing the under recovery in coastal movement of HSD at increased thruput, and for timely evacuation of product.

Awards

  • TPM – Excellence award by Japan Institute of Plant Maintenance (JIPM) has been given to CPCL – Manali Refinery for implementing all the 8 Pillars of TPM.
  • CPCL adjudged amongst the top 3 Companies in Manufacturing Category in AIMA-IOCL Award for Best Motivational Practices in Manufacturing & Services – 2010.
  • CPCL bagged the coveted FIRST PRIZE - Best Enterprise Award for 2011 constituted by Forum of Women In Public Sector (WIPS) - under the aegis of SCOPE, in MINI RATNA Category.
  • CPCL was awarded the “Highest Tax Payer Award-2010” for the seventh time in succession by the Central Excise Department for the contribution of Excise Duty in Chennai Zone.
  • CPCL has been adjudged as the "Significant Turnaround PSU" at the 3rd DSIJ PSU Awards function where select leading PSUs were recognised for their meritorious performance.
  • Petrofed Award 2010 - CPCL has won Special Commendation award “Petrofed Award 2010 : Environmental Sustainability : Company of the Year.
  • CPCL has been jointly awarded with IOC R&D, the Innovator of the year (Team) Award by Petrofed for commercializing the Ultra Low Diesel Hydrodesulphurisation Catalyst.
  • One of CPCL employees Mr.C.Ramadoss, Refinery Operator, CPCL CBR won the Prime Minister’s Shram Vir Award for 2009.

Corporate Social Responsibility

An amount of 380 lakh was spent towards for Corporate Social Responsibility Activities in and around Manali and CBR focusing on Education, Health Care and Sanitation, Women empowerment, skill development, Sports Development and other infrastructure development .