Indian Oil has officially begun construction work on a new 2 million L petroleum terminal near Kamarajar Port in Vallur, in Tamil Nadu, India.
The INR 90 billion (€1.02 billion) Vallur terminal is being built on a 40.5 ha site and will include a truck depot with 24 bays. It will receive products from the nearby Chennai Petroleum Corporation (CPCL) refinery and from Kamarajar Port. The terminal is expected to be completed by 2023.
The terminal will supply petrol, diesel, kerosene and aviation fuel by road to Chennai and nearby districts, while a pipeline will supply other areas of Tamil Nadu state, including Trichy, Salem, Madurai and Asanur. It will also supply Chittoor in Andhra Pradesh state and Bengaluru in Karnataka state. Indian Oil says that the terminal, which is situated between the refinery and the port, can be also used to move surplus refinery production to the port.
Indian Oil will also build a new captive jetty at Kamarajar Port to serve the new terminal and enhance its operational flexibility. It is also expected to cost INR 90 billion and will have a capacity of 2-3 million tpa. It will be connected to the Vallur terminal and the CPCL refinery by pipeline. All studies have been completed for the jetty and all agreements signed with the port authorities. It is expected to be commissioned in 2025.
‘IndiannOil is the leading supplier of fuels in Chennai as well as Tamil Nadu. Petroleum demand of Chennai markets of Indian Oil is currently being met from supply locations in North Chennai, i.e. Korukkupet and Tondiarpet terminals located between Chennai Port and CPCL Refinery, Manali. However, with the increasing population in these areas, it has become difficult to operate and move product from these locations. In view of this a new site at Vallur, away from the city, has been identified for re-siting the current terminals,’ says the company in a statement.