Asia/Pacific News
Chemoil Adani Plans Chennai Bunkering Facility
A Chemoil joint venture is looking into developing a bunkering facility at Chennai port, Indian business newspaper the Hindu Business Line reports.
Chemoil, which is working with Indian logistics and energy player Adani through the joint venture Chemoil Adani, said the pricing of IFO380 at Chennai, where the Indian Oil Corp. is now the only bunker supplier, is not in line with international price movements.
Chemoil said the port, which now sells about 3,540 tonnes of bunker per month, could greatly expand its activity.
"We can replicate the success of Mundra in Chennai," the company said.
"We can reach 10,000 tonnes within 12 months."
Chemoil supplies nearly 50,000 tonnes of bunker from Mundra, serving the Gujarat coast.
A member of the Chennai Port Trust board said the port is an ideal location for a bunkering facility on the east coast.
Chemoil said there are major challenges around bunkering in India including the non-availability of pipelines for bunkering at cargo jetties and of dedicated bunkering terminals.
The Chennai Port Trust is already planning a new Rs 26 crore ($4.2 million) barge facility to meet increased demand for bunkering.
Citing growth in the Indian market, GAC Bunker Fuels, OW Bunker, and International Bunkering have all expanded their operations in the country this year.
