CPCL ramps up LPG output

Distributors have seen spike in bookings for refill cylinders

With the demand for liquefied petroleum gas (LPG) on the rise from domestic users because of the lockdown, Chennai Petroleum Corporation Limited (CPCL) refinery has increased its production.

CPCL’s Manali refinery complex, which has three refineries, produces around 28,000 tonnes of LPG every month.

“We usually produce 3 to 4% of LPG from crude oil. That has now been increased to 7 to 8%. LPG is the lightest product and it is one of the first to get in the process of refining. The secondary cracking unit too is producing LPG,” said an official source in CPCL, which is a subsidiary of Indian Oil Corporation Ltd.

The Centre recently decided to import more LPG to meet the higher demand. Oil marketing companies had to put in place a few restrictions to stop panic bookings by consumers.

Distributors have been witnessing a spike in demand for refill cylinders with people staying home.

Demand goes up

“We don’t see this demand coming down any time soon. It will continue even if the lockdown is lifted since many people don’t seem to be comfortable eating out. And with salary cuts that option will be put on the back burner as much as possible,” said a distributor.

Indian Oil Corporation Ltd., which is the market leader in supply of cooking gas in the State, requires around 1 lakh tonnes of LPG a month.

Around 80,000 to 90,000 tonnes are imported every month through its Ennore terminal.

The State consumes around 2 lakh tonnes of LPG every month. However, this number varies slightly according to the demand, said oil industry sources.

https://www.thehindu.com/news/cities/chennai/cpcl-ramps-up-lpg-output/article31496434.ece