Mundra (Kutch), Dec. 15
INDIAN Oil Corporation (IOC) has managed to save at least Rs 1,500 crore by converting the Kandla-Bhatinda products pipeline into a crude carrying facility and using it to feed its Panipat refinery.
"We realised that we would need to sink in at least Rs 2,200 crore if we wanted to set up a crude pipeline from our single point mooring (SPM) facility at Vadinar to Panipat. But now we will use the Mundra Port SPM to offload crude and carry it to Panipat," the IOC Director (Pipelines Division), Mr A.M. Uplenchwar, told reporters here.
IOC has spent about Rs 700 crore to set up a tank farm at Mundra port and connect it to the Kandla-Bhatinda pipeline. It has mandated Mundra port to handle six million tonnes of crude oil per annum for the next two years.
Mr Uplenchwar said that Adani's SPM would be used to offload nine million tonnes of crude per annum by 2008, by when the second phase of the Panipat refinery expansion will go on stream.
He also said that the Baroda-Hazira pipeline being laid by IOC will be ready by March 2006.