"An Iranian team has already started a feasibility project and now we are looking at a bigger project, which may cost 800 to 1,000 million dollars," CPC chairman Ashantha de Mel said.
"The feasibility will be completed by May.
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CPC now has a 50,000 bpd refinery and also imports refined products from abroad but doubling its capacity will allow the utility to stop imports. A 50,000 bpd expansion with was expected to cost around 500 to 700 million dollars.
Boosting total capacity to 150,000 bpd will allow CPC to export refined products.
"We can even sell to LIOC," he told LBO.
CPC has a more than two thirds of the market and is the only retailer of kerosene, while LIOC, a unit of the Indian Oil Corporation has the balance.
CPC's existing refinery, built in 1968 with Soviet help, is not very efficient as it yields a large volume of furnace oil.
De Mel wants to install a hydro cracker which will allow CPC to produce less furnace oil and more diesel and petrol which are mor