CHENNAI: Indian Oil Corporation will be building a new oil terminal at Vallur and a captive Jetty near Kamarajar Port to handle petroleum products.
The Petroleum Terminal in Vallur will come up in an area of 100 acres near Kamarajar Port would supply petrol, diesel, kerosene and aviation fuel by road to Chennai and the adjoining districts and through pipeline to Trichy, Salem, Madurai and Asanur (Villupuram).
The terminal, which will have a storage capacity of 200,000 Kilo litres, would receive products from CPCL Refinery and also through petroleum jetty at Kamarajar Port.
It will have a facility to fill trucks in 24 bays at a time.
Built at an estimated cost of Rs 900 Crore, the terminal will also have the operational flexibility to receive petroleum products through tanker ships from Chennai Port during contingency.
the terminal would also supply outside the state to Chittoor and Bengaluru. The spokesman said that the terminal can facilitate moving out surplus refinery production to the Kamarajar Port as it is to be located between the port and the refinery.
The project is part of the three Memorandum of Understandings (MoU) which was signed with the Industrial Guidance Bureau during the Global Investors’ Meet held at Chennai in 2019.
The foundation stone for the project was laid by Home Minister Amit Shah during his recent visit to the city.
The need for the project arose as it was difficult to operate and move products from Korukkupet and Tondiarpet Terminals located between Chennai Port and CPCL Refinery, Manali.
The new site at Vallur, away from the city has been identified for re-siting the current terminals as it will enhance operational flexibility, said a Indian Oil Corporation spokesman. It is expected to be completed by 2023.