IOC opens bulk storage facility for lube base stocks
New Delhi   24-May-2011


Mr R.S. Butola, Chairman, IOC, flagging off the first lube base stock tanker, after inaugurating the lube oil bulk storage facility, in Chennai on Monday. Mr K. Balachandran, Managing Director, CPCL, and Mr D.S.L.Prasad, Executive Director, IOC (Tamil Nadu State Office), are also seen

Mr R.S. Butola, Chairman, IndianOil, inaugurated a lube oil bulk storage facility on May 23, 2011 at Chennai, built at a cost of Rs 23.36 crore. The terminal will make it easier for the company to supply base stocks to its customers.

Companies like Castrol buy lube base stocks, blend them in some proportion and produce a variety of lubricants for automotive and industrial applications. While IOC itself in the lubricants business — it is the largest player — but it also supplies raw materials to its competitors.

Earlier, IOC's competitor-customers were given their supplies out of the refinery complex of Chennai Petroleum Corporation Ltd, which is a subsidiary of IOC. Now, with the new bulk storage facility in place, the lube base stocks from the refinery will be piped to the facility, from where it would be supplied to customers.