New Delhi: Oil India Limited (OIL) on Wednesday said that it has signed an agreement with Numaligarh Refinery Limited (NRL) for transportation of additional petroleum products through its Numaligarh-Siliguri Product Pipeline (NSPL) for 25 years.
"OIL’s material subsidiary company signed a new long-term Definitive Agreement for the transportation of additional petroleum products through OIL’s Numaligarh-Siliguri Product Pipeline (NSPL) following the commissioning of Numaligarh Refinery Expansion Project," it said in an official statement.
The agreement will be effective from the date of commencement of augmented pipeline operations for 25 years.
The agreement has been signed by OIL's Director (Operations) Pankaj Kumar Goswami and NRL's Director (Finance) Sanjay Choudhury in the presence of OIL's Chairman & Managing Director (CMD) and NRL's Chairman Dr Ranjit Rath, NRL's Managing Director (NRL) Bhaskar Jyoti Phukan and Functional Directors, CVO and senior officials from both the companies in a ceremony held on May 20 in New Delhi.
On the occasion, Rath lauded the efforts of both companies in framing the Definitive Agreement, which will go a long way in the transportation of petroleum products to Siliguri & beyond, thus fuelling the growth trajectories of energy availability in the days to come.
Currently, OIL evacuates 1.72 MMTPA of petroleum products through NSPL, delivering to the Marketing Terminal of NRL at Siliguri. Since its commissioning in 2008-09, the NSPL has served as the lifeline for evacuating products from NRL’s Refinery to Siliguri Marketing Terminal for onward distribution to various demand centres in eastern and northern India. In line with Hydrocarbon Vision 2030 for Northeast India, NRL is executing Numaligarh Refinery Expansion Project to enhance capacity from 3 to 9 MMTPA.
To evacuate NRL’s additional petroleum products through existing NSPL, OIL & NRL entered into an MoU in December 2020 under which, OIL agreed to invest for augmenting the capacity of the NSPL from 1.72 MMTPA to 5.50 MMTPA by way of establishing additional booster pump stations and other facilities at different pump stations along its right of way.
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