India's Manali refinery to raise capacity by a third to 280,000 barrels per day

India's Chennai Petroleum Corporation Limited (CPCL) said in its 2025/2026 report, reported on Monday 3 August 2026, that it plans to raise crude refining capacity at its Manali refinery in Chennai by a third, from 210,000 barrels per day to 280,000 barrels per day. The company did not give a timeline for the expansion. CPCL is a subsidiary of India's top state controlled refiner, Indian Oil Corporation, and the Manali plant produces fuels, lubricants, waxes and petrochemicals.

The company's smaller Cauvery Basin Refinery in Nagapattinam was decommissioned in 2019 because its existing configuration could not meet product specifications. CPCL had planned to rebuild it, but earlier this year shifted the plan's focus from a refinery to a petrochemicals complex, a project in which Indian Oil Corporation holds a 75% stake.

According to the International Energy Agency's World Energy Investment 2026 report, planned expansions of oil refining capacity are set to lead India's energy investment this year and in the coming years, alongside solar installations. India's energy investment has risen by an average of 11% over the past five years, with oil refining investment up 23%, putting the country on track for a 15% increase in refining capacity by 2030. India is one of Asia's largest oil buyers and a key driver of global crude demand.