Sunday, October 2, 2022

EIL will help NRL set up 2,000-km pipeline from Paradip to Numaligarh

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New Delhi: Numaligarh Refinery Limited (NRL) has awarded a Rs 185-crore order to Engineers India Limited (EIL) for a pipeline that will be 2,000 Km long and will transport crude oil from Odisha’s Paradip port to Assam’s Numaligarh. “Numaligarh Refinery Limited has awarded Engineering, Procurement and Construction Management Services (EPCM) to Engineers India Limited (EIL) for Cross Country Crude and Product Pipelines and Crude Oil Terminal,” EIL said in a regulatory filing on Friday.

From Paradip to Numaligarh, NRL pipeline will be one of the largest

“With a total length of over 2000 Kms, it is one of the largest pipeline networks to be set up in the North-Eastern region. EIL’s award value of approx Rs 185 Crores is also one of the largest order values secured in pipeline segment,” the filing said.

The backdrop

The cross-country pipeline project from Paradip to Numaligarh was approved by the Cabinet earlier in January this year. Along with this pipeline, work has already started on another pipeline that will carry petroleum products from Siliguri to Bangladesh, a source aware of the development at the state-run refiner said.
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The news comes months after NRL’s Chairman D. Rajkumar told the shareholders at the annual general meeting in August, “The year 2018-19 will go down in the annals of NRL as a historic year. It was a watershed moment for the company when the Union Government gave its formal approval in January 2019 for enhancing NRL’s capacity from existing 3 MMTPA to 9 MMTPA at a project cost exceeding Rs. 22,000 Crore. Being the highest ever investment in North East India so far, it is indeed a harbinger and a loud signal for the immense economic growth and progress of the North East region apart from securing the future of a standalone refinery like NRL which has been facing supply-side constraints. This mega project also envisages laying of over 2,000 KM of pipelines for transporting imported Crude Oil from Paradeep port to Numaligarh and then to facilitate the evacuation of products from Numaligarh to Siliguri, making NRL an active player in the mid-stream section.”

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