Indian Oil Corporation Limited (IOCL), together with other equity partners, has signed a joint venture (JV) agreement with its subsidiary Chennai Petroleum Corporation (CPCL) to build a refinery in Tamil Nadu, India.

The JV will construct a nine million tonne per annum (MMTPA) refinery and petrochemicals project at Nagapattinam in Tamil Nadu.

IOCL and CPCL will each hold a 25% equity stake in the JV, with the remaining 50% stake held by strategic investors, to be finalised later.

The other equity partners include Axis Bank and ICICE Bank, SBI CAPS, and are expected to subscribe to a 10% equity share each in the JV.

The refinery complex is estimated to entail an investment of INR315.8bn ($3.8bn).

Once operational, the facility will address the demand for petroleum products in Southern India and bring economic development to the region, stated CPCL.

In 2019, IOCL teamed up with India’s state-owned Oil and Natural Gas Corporation (ONGC) to implement a carbon capture utilisation and storage project (CCUS project) in India.

The two companies signed a memorandum of understanding (MOU) to build a CO2-based enhanced oil recovery (EOR) programme to capture CO2 from IOCL’s Koyali Refinery in the western Indian state of Gujarat.

The MoU aims to improve hydrocarbon production from domestic fields and reduce the country’s carbon emission targets.