Oil India and Numaligarh Refinery Join Forces to Strengthen Northeast India’s Energy Landscape

Oil India Limited (OIL), India’s oldest oil and gas company and a Maharatna Central Public Sector Enterprise (CPSE) under the Government of India, has joined forces with its subsidiary, Numaligarh Refinery Limited (NRL), to bolster the transportation of petroleum products in Northeast India significantly. This strategic collaboration is marked by the signing of a new long-term Definitive Agreement for transporting additional petroleum products through OIL’s existing Numaligarh-Siliguri Product Pipeline (NSPL).

The agreement was signed on May 20, 2024, in New Delhi by Shri Pankaj Kumar Goswami, Director (Operations), OIL, and Shri Sanjay Choudhury, Director (Finance), NRL. Dr Ranjit Rath, Chairman & Managing Director, OIL & Chairman NRL, Shri Bhaskar Jyoti Phukan, Managing Director (NRL), Functional Directors, CVO, and senior officials from both Companies were also present. For a duration of 25 years, the Agreement will be in effect as of the date when pipe operations are expanded.

Lifeline for Northeast India’s Energy Needs

Since its commissioning in 2008-09, the NSPL has played a critical role in evacuating refined petroleum products from NRL’s refinery in Numaligarh, Assam, to the marketing terminal in Siliguri, West Bengal. This vital pipeline serves as the lifeblood for delivering essential fuels to various consumption centres across eastern and northern India.

Scaling Up Capacity to Meet Growing Demand

Aligned with the ambitious Hydrocarbon Vision 2030 for Northeast India, NRL is currently undertaking a significant expansion project to enhance its refining capacity from 3 million metric tonnes per annum (MMTPA) to 9 MMTPA. To ensure efficient transportation of the increased production volume, OIL and NRL entered into a Memorandum of Understanding (MoU) in December 2020.

This MoU outlined OIL’s commitment to invest in augmenting the NSPL’s capacity from 1.72 MMTPA to 5.50 MMTPA. This expansion will be achieved by establishing additional booster pump stations and related facilities strategically positioned along the pipeline’s right of way.

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