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IOC to invest Rs 9,028 cr on Crude Oil Pipeline

Indian oil

Indian Oil Corporation, India’s largest oil refinery, on Thursday announced that it is planning to construct a crude oil pipeline system which will have a capacity of 17.5 million tonnes per annum from Mundra in Gujarat to Panipat in Haryana.

Furthermore, it will also build 9 crude oil tanks of 60,000-kiloliters each at Mundra which will not only meet its operational requirements but will also help in improving crude oil storage capacity in the country. And the Pipeline system is designated to transport imported crude oil from the Gujarat coast to the firm’s refinery in Haryana.

It is estimated that this project will cost 9,028 crores. The Board has approved this investment proposal in a meeting held on December 20.

The new pipeline system and crude oil tank storage would help in meeting the enhanced need of crude oil requirement due to the expansion of the Panipat refinery. This pipeline project is expected to be completed in synchronization with the commissioning of the Panipat refinery expansion.

The company aims to raise the capacity of the Panipat refinery from 15 million tonnes per annum to 25 million tonnes along with the installation of a Polypropylene unit and Catalytic Dewaxing unit by the second quarter of 2024-25.

Presently, IOCL operates a network of more than 15,000 km long crude oil, petroleum product, and gas pipelines and as a pioneer in oil pipelines in the country, manages one of the world’s largest oil pipelines. It has expanded its pipeline network by 337 km in 2020-21 and plans to expand it further as the business grows.

The Company made a throughput of 76.019 million metric tonnes during 2020-21.

Its existing pipeline network has a throughput capacity of 94.56 million metric tonnes per annum of oil and 21.69 million metric standard cubic meters per day of gas. Projects under implementation will further increase the length of the pipeline network to about 21,000 km and throughput capacity to 102 million tonnes per annum.

Indian Oil also plans to lay a 1,244 km pipeline to reach Liquified Natural Gas(LPG) imported at Ennore to Nagapattinam, Tuticorin, Madurai, and Bengaluru. In July 2019, IOCL also commissioned Motihari-Amlekhganj Pipeline, the first transnational pipeline in the country.

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