CPCL is starting to work on creating a specialized base stock of lubricating oils

ByTech Word News

Chennai Petroleum Corporation Limited’s (CPCL) Manali Refinery has started work to set up a base oil plant for Group II and Group III lubricants.

The lube oil base stock (LOBS) unit will cost ₹1,600 crore. Once completed, it will be able to supply the base for Indian Oil Corporation Ltd’s lubricants plant. in Manali, CPCL Managing Director H. Shankar told The Hindu.

CPCL is the only refinery in the country that produces fuels, LOBS and paraffin wax. “We supply base oil for Group I lubricants that are used in automobiles and other machinery. Group II and III lubricants are specialized variants and can be used in high-performance engines and automatic transmission fluids. They can withstand higher temperatures and have a higher viscosity. Premium LOBS Group II and III also have reduced sulfur content, which means they are cleaner than other lubricants,” he said.

While the demand for Group I base oils is expected to continue, the demand for Group II/III base oils is increasing in the country. “We are importing a large quantity of Group II LOBS and the demand is expected to increase further. In such a situation, CPCL is setting up this project to produce LOBS. We will help reduce the country’s dependence on imports,” added Mr. Shankar.

The project also aims to convert the existing flow-through hydrocracking unit to increase capacity and install a new catalytic dewaxing unit with a projected capacity of 270,000 tonnes per year.

The new units will process crude oil streams derived from vacuum gas oil from the refinery to produce high value base oils. On implementation of the project, CPCL will be able to produce approximately 2,42,000 tonnes per annum of Group II and III LOBS.

The project is also in line with the company’s broader strategy of adding value, diversifying products and increasing refining margins through the production of specialty petroleum products. The unit is being built on an area of ​​7,000 m2. piece of land inside the Manali refinery complex and no additional land will be required for it. A green belt will also be built around it.

Published – 17 May 2026 22:57 IST