IOC to invest ₹9,028 cr for new crude oil pipeline from Mundra
Premium- Indian Oil is implementing a project for capacity expansion of Panipat refinery from 15 million tonne per annum to 25 million tonne
Indian Oil Corporation (IOC), the nation's largest oil firm, on Thursday said it will invest ₹9,028 crore in laying a new crude oil pipeline from Mundra in Gujarat to Panipat in Haryana.
The pipeline, which will have a nameplate capacity of 17.5 million tonne per annum, will transport imported crude oil from the Gujarat coast to the firm's refinery in Haryana, the company said in a statement.
"Under this project, IOC would also build 9 crude oil tanks of 60,000 kilolitres each at Mundra, which, apart from meeting operational requirements, would help in enhancing crude oil storage capacity in the country.
The total estimated cost of the project is ₹9,028 crore," it said adding the board of the company approved the investment proposal at its meeting on December 20.
IOC is implementing a project for capacity expansion of Panipat refinery from 15 million tonne per annum to 25 million tonne along with the installation of polypropylene unit and Catalytic Dewaxing Unit with targeted completion in second quarter of FY 2024-25.
"The new pipeline system and crude oil tank storage would help in meeting the enhanced need of crude oil requirement due to the expansion of the Panipat refinery. The crude oil pipeline project is expected to be completed in synchronization with the commissioning of Panipat refinery expansion," it said.
IOC operates a network of more than 15,000 km long crude oil, petroleum product and gas pipelines and, as a pioneer in oil pipelines in the country, manages one of the world's largest oil pipeline networks.
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It added 337 km of additional pipeline length during 2020-21 and plans to continuously expand the network in line with growth in business.
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