Sign up
Log in Sign up
Mon 15 Jun 2009, 09:28 GMT

CPCL could double bunker volumes at Chennai


Oil firm aims to substantially increase marine fuel sales at southeastern port over the next 12 months.

Chennai Petroleum Corporation Ltd.(CPCL), a unit of India’s biggest refiner, is reportedly looking to substantially increase its bunker sales volumes at Chennai over the next 12 months, according to industry sources.

News of the company's plans follows CPCL's recent launch of 380-centistoke (cst) at the strategically-located southeastern port.

CPCL is said to be planning to supply the new grade of bunker fuel to its parent company Indian Oil Corporation (IOC) for direct sales to vessels calling at the port.

According to market estimates, CPCL's bunker sales at Chennai are currently at around 5,000 tonnes per month, and the company is reported to have the capacity raise the amount according to market demand. IOC is said to be looking to increase sales by 100 percent within a year to 10,000 tonnes.

News of CPCL's and IOC's future plans at Chennai follows the announcement earlier this month by leading marine fuels supplier Chemoil that it intends to begin supplying at Chennai by the end of the year.

Speaking at the Reuters Energy Summit, Sanjay Anand, Managing Director of Asia and Middle East operations, said "We are discussing with various parties about our expansion into Chennai, and we expect to start supplying 10,000 tons of bunker fuel by the end of the year."

Chemoil launched its joint venture supply service at Mundra with local firm Adani Enterprises Limited at the start of this year. Monthly sales volumes at Mundra reached 50,000 metric tonnes in both March and April 2009 and the company expects sales to double to around 100,000 tonnes per month by the end of this year, Anand said.

In May, CPCL announced that its profit fell by 21 percent during the fourth quarter after earning less from turning crude into fuels.

Net income in the three months ended March 31 dropped to 2.72 billion rupees ($57 million) from 3.43 billion rupees a year earlier. Net sales declined by 43 percent to 48.1 billion rupees.

Chennai Petroleum said it earned $6.6 on every barrel of crude turned into fuels, compared with $9.59 a barrel a year earlier.

Illustration of balance scale with cargo ship and penalty block. FuelEU penalties spark contract disputes as first-year compliance costs emerge  

Shipowners and charterers negotiate biofuel handling, payment timing, and multiplier penalties under new regulations.
Marina Bay Sands, Singapore. Singapore tops first global container port ranking by DNV and Menon Economics  

The port leads across all five assessment pillars in inaugural industry report.
Jack Spyros Pringle, Lloyd’s Register. Marine fuel procurement becomes strategic imperative as regulatory pressures mount: LR  

Operators must adopt comprehensive fuel strategies amid supply constraints and compliance costs, says Lloyd's Register.
Xinfu124 ultra-large LNG carrier. Private Chinese shipbuilder plans to deliver eight dual-fuel boxships  

Yangzi Xinfu is fully booked until May 2029 and expected to post annual sales revenue exceeding $1.4 billion.
Østensjø Rederi newbuild tug render. Østensjø Rederi orders methanol-ready tug from Spanish shipyard  

Norwegian operator contracts Astilleros Gondán for vessel with diesel-electric hybrid propulsion system.
Bound4blue worker in safety gear. Bound4blue establishes China production base for wind propulsion systems  

Spanish wind propulsion firm targets Asian shipbuilding market with outsourced manufacturing network.
Alfa Laval and Hanwha Ocean Ecotech sign MoU. Alfa Laval and Hanwha Ocean Ecotech partner on ammonia fuel systems  

Collaboration aims to develop ammonia fuel technology for dual-fuel vessels in the Asian market.
Meg Dowling, Lloyd's Register. Nuclear-powered boxships could deliver $68m annual savings: Lloyd's Register  

Small modular reactors could eliminate fuel costs and carbon penalties while boosting cargo capacity, says report.
Minerva Bunkering and Autoridad Portuaria de Las Palmas (APLP) signing ceremony. Minerva Bunkering extends Las Palmas terminal concession by 15 years  

Bunker supplier adds barge capacity and explores new terminal for energy transition fuels.
Liam Blackmore, Lloyd's Register. Ammonia Energy Association releases gas detection whitepaper with Lloyd's Register input  

Lloyd's Register contributed expertise to new guidance on ammonia detection systems for the maritime sector.




 Recommended