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NRL inks pipeline ‘Right to Use’ sharing agreement with IGGL

Numaligarh Refinery Limited (NRL) has signed a pipeline ‘Right to Use’ sharing agreement with Indradhanush Gas Grid Limited (IGGL)
NRL inks pipeline ‘Right to Use’ sharing agreement with IGGL
NRL inks pipeline ‘Right to Use’ sharing agreement with IGGL

New Delhi: A pipeline ‘Right to Use’ (RoU) sharing agreement was signed between Numaligarh Refinery Limited (NRL) and Indradhanush Gas Grid Limited (IGGL) on October 21, NRL said in an official statement on Friday. IGGL is a joint venture of NRL with Indian Oil Corporation (IOCL), Oil & Natural Gas Corporation (ONGC), Gas Authority of India Limited (GAIL) and Oil India Limited (OIL). The agreement was signed by NRL’s General Manager (Project) PJ Sarmah and IGGL’s Chief Project Manager Pankaj Patowary in the presence of NRL’s Director (Technical) BJ Phukan, NRL’s Director (Finance) Indranil Mittra, IGGL’s CEO AK Thakur and senior officials from both the organisations.

NRL is in the process of laying down 1,630-km-long Paradip Numaligarh Crude Pipeline (PNCPL), a crude pipeline originating from Paradip Port in Odisha and traversing through West Bengal, Jharkhand, Bihar, before terminating at its refinery in Numaligarh (Assam). The pipeline project is a crucial part of NRL’s mega integrated refinery expansion project for capacity expansion from 3 MMTPA to 9 MMTPA, which is being executed with an investment of more than Rs 28,000 crore.

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IGGL is laying a natural gas pipeline from Guwahati to Numaligarh as part of its marquee project for connecting India’s North-Eastern Region (NER) with the National Gas Grid. IGGL’s natural gas pipelines will connect Guwahati to major cities of NER like Itanagar, Dimapur, Kohima, Imphal, Aizwal, Agartala, Shillong, Silchar, Gangtok and Numaligarh.

NRL and IGGL’s pipeline sharing agreement leverages synergies between the PNCPL project and NER Gas Grid project as the pipelines share a common route from Baihata (North Guwahati) to Numaligarh for around 386 Km. The RoU model streamlines land acquisition and resource sharing for optimal execution of pipeline-laying work and subsequently, efficient operations of the pipeline.

This pact follows NRL’s earlier pipeline RoU sharing agreement with GAIL, signed on October 14, for a 550-Km stretch from Purnia in Bihar to Baihata, also a part of the Pradhan Mantri Urja Ganga Project.

These agreements are important milestones in the government's Hydrocarbon Vision 2030 for North-East India which seeks to leverage the region’s hydrocarbon potential for enhancing access to clean fuel in line with NER’s growing demand for petroleum products, and also underline NRL’s key role in ushering in the socio-economic development of the region.

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