New Delhi: The Board of Directors of Indian Oil Corporation (IOC) has approved a Rs 9,028-crore investment proposal for a new crude oil pipeline from Mundra to Panipat, along with the augmentation of the crude oil tank farm at Mundra, Indian Oil said on Tuesday. The pipeline will have a capacity of 17.5 MMTPA and will help India's second largest oil retailer in meeting the enhanced crude oil requirement arising due to the expansion of Panipat Refinery.
In a regulatory filing to the stock exchanges, IOC said, "… it is hereby informed that the Board of IndianOil at its meeting held on 20th December, 2021 has accorded approval for investment proposal of new crude oil pipeline system with nameplate capacity of 17.5 MMTPA from Mundra to Panipat, alongwith with augmentation of crude oil tank farm at Mundra, at an estimated cost of Rs 9,028 crore."
IOC told the bourses that the project is expected to be completed within three years and would be synchronised with the commissioning of Panipat Refinery expansion project. It added, "The project will meet the enhanced crude oil requirement arising out of capacity expansion of Panipat Refinery from 15 MMTPA to 25 MMTPA."
The Panipat Refinery expansion project will entail an investment of Rs 32,946 crore and will involve expansion of the capacity of Indian Oil's Panipat Refinery from the current 15 MMTPA to 25 MMTPA. The project will also involve the installation of a Polypropylene Unit and Catalytic Dewaxing Unit. The expansion plan will increase the capacity of Indian Oil's Panipat Refinery from 300,000 barrels per day to 500,000 barrels per day. And the project is expected to be commissioned by September 2024.
The Panipat Refinery expansion project would not only improve the ability of the state-run refiner to meet the domestic fuel demand but will also enhance its petrochemical intensity which will allow the company to de-risk its fuel business from the vagaries of the oil market.
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