Oil India Limited and Numaligarh Refinery sign long-term agreement for petroleum transportation


In a significant development for India’s energy sector, Oil India Limited (OIL), India’s oldest oil and gas company and the youngest Maharatna Central Public Sector Enterprise, and its material subsidiary, Numaligarh Refinery Limited (NRL), have solidified their partnership. The two entities signed a new long-term Definitive Agreement to manage the transportation of additional petroleum products via the Numaligarh-Siliguri Product Pipeline (NSPL). This follows the completion of the Numaligarh Refinery Expansion Project which aims to significantly boost the refinery’s capacity.

The agreement, effective from the commencement of the augmented pipeline operations, will span 25 years, securing a long-term logistical pathway for petroleum products from Numaligarh Refinery Limited. This strategic move comes as a response to the increased production capabilities of NRL, which is set to rise from 3 million metric tons per annum (MMTPA) to 9 MMTPA. The expansion is part of the broader Hydrocarbon Vision 2030 for Northeast India, aiming to enhance the region’s energy infrastructure and meet growing demands.

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Currently, OIL manages the evacuation of 1.72 MMTPA of petroleum products through NSPL, delivering to NRL’s Marketing Terminal at Siliguri. Since its inception in 2008-09, the NSPL has been crucial for transporting NRL’s refinery products to the Siliguri Marketing Terminal, from where they are distributed across eastern and northern India.

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The agreement was signed by Shri Pankaj Kumar Goswami, Director (Operations) of Oil India Limited, and Shri Sanjay Choudhury, Director (Finance) of NRL, in a ceremony attended by prominent figures including Dr. Ranjit Rath, Chairman & Managing Director of OIL and Chairman of NRL, and Shri Bhaskar Jyoti Phukan, Managing Director of NRL, among other senior officials from both companies.

Dr. Ranjit Rath expressed optimism about the future implications of this agreement, stating, “This long-term agreement is not just a business transaction; it is a strategic alliance that will enhance the transportation of petroleum products to Siliguri and beyond, fueling the growth trajectories of energy availability in the upcoming days.”

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This definitive agreement marks a milestone in the collaboration between Oil India Limited and Numaligarh Refinery Limited, emphasizing their commitment to enhancing energy availability in India, particularly in the northeastern region. The enhanced capacity of NSPL is expected to play a pivotal role in supporting the distribution of petroleum products, thereby contributing to regional and national energy security.

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