The Hindu Business Line : Reliance Petro plans storage unit in Paradip

The company, according to Paradip Port Trust sources, should not take more than a year or so to develop the facility and start operation from the time it gets land.

Kolkata , April 11

Reliance Petroleum Ltd proposes to build storage facility for petroleum products, namely, kerosene, diesel and motor spirit at Paradip port and has accordingly asked for land in the port area. The port authorities, it is learnt, will consider the proposal sympathetically.

Initially, the company will transport by the coastal route an estimated five-lakh tonnes of products annually from its Jamnagar refinery located on the west coast. The volume will increase as and when the market for the products grows in Orissa and around. A pipeline network will connect the tankage (storage) with the port's oil jetty.

The company, according to Paradip Port Trust (PPT) sources, should not take more than a year or so to develop the facility and start operation from the time it gets land. PPT's oil jetty, though ready for full-fledged operation, remains grossly under-utilised.

In 2005-06, the port handled an estimated 0.91 million tonnes (mt) of petroleum products compared to 0.84 mt in the previous year.

3.5 mt throughput likely

The throughput in the current fiscal is supposed to post a big jump as the Paradip-Haldia crude pipeline is due for commissioning during the course of the year. But the port sources are not sure when will the pipeline be ready for regular operation and how much crude to be imported through the oil jetty will flow into the pipeline in the current year. The throughput, it is estimated conservatively, may be around 3.5 mt, comprising 3 mt of crude and 0.5 mt of products.

Meanwhile, Deepak Fertilisers & Chemicals Ltd too has asked for 25 acres of land to set up at Paradip an ammonium nitrate fertiliser plant with a capacity of three lakh tonnes annually. The company will import about one-lakh tonnes of ammonia to produce an estimated two-lakh tonnes of fertiliser, of which 1.5-lakh tonnes will be exported, with the rest planned to be evacuated by rail/road route.

Lime plant in limbo

Lhoist, the Belgian firm which too had asked for a large chunk of land in the port area for setting up a huge lime plant, is believed to have developed cold feet about the project. There has been no progress of the project beyond initial inquiries.

PPT sources make it clear that the land to the prospective users of the port will be offered through the tender route as per the laid down rules and regulations.