CHENNAI: Chennai Petroleum Corporation Limited (CPCL), a subsidiary of Indian Oil Corporation, has been accused of a major oil spill in Chennai by regulatory agencies of Tamil Nadu. State pollution control board (TNPCB) and State of Oil Spill Crisis Management Group (SOS-CMG) have attributed the oil spill to CPCL Manali refinery, near Chennai.
The oil mixed with floodwaters in the aftermath of the Michaung cyclone on December 4 and spread into the sea through water bodies. According to Indian Coast Guard estimation the spillage is spread across 20 sq. km. State pollution control board in its report has stated that CPCL is liable to pay environmental compensation under Water (Prevention and Control of Pollution Act, 1974. It is also liable to pay compensation to the families adversely affected impacted by the oil spillage, including loss of livelihood. All of these could have financial implication for the company.
State-owned CPCL is also directed to carry out a leak detection and repair study and take necessary remedial measures where oil deposits/slick is stagnated. Indian Oil Corporation owns 51.89% of stake in CPCL. Naftiran Intertrade company, a subsidiary of government-owned National Iranian Oil Company, owns 15.4% shares.
Responding to the query sent by this newspaper, CPCL said there is no pipeline leak at Manali Refinery and is investigating the matter. CPCL said, “mixing of floodwater with the contaminated rain water system of the refinery is suspected”. The rise in storm water level could have caused reverse flow, slippage of oil traces into Buckingham Canal, it said. “CPCL has taken the lead to remove the oil slick near Ennore creek in coordination with state authorities.”
CPCL said booms are being deployed to prevent slippage of oil near the Ennore creek and elaborated various mitigation efforts. Manali Refinery has a capacity of 10.5 MMTPA with three Crude Distillation Units. It supplies LPG, petrol, diesel, aviation turbine fuel, naphtha, and also provides petrochemical feedstock to various industrial units in north Chennai. CPCL in a joint venture with IOC is also executing a 9MMPTA refinery project at Nagapattinam in Tamil Nadu.