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State-run oil refiner, Indian Oil Corporation said on Thursday that it will invest ₹9,028 crore for setting up a new crude oil pipeline system with a nameplate capacity of 17.5 mmtpa from Mundra to Panipat. Under this project, IOC will also build nine crude oil tanks of 60,000 KL (kilo litres) each at Mundra, which, apart from meeting operational requirements, would also help in enhancing crude oil storage capacity in the country.
The Indian Oil Board, at its meeting on December 20, has approved the investment proposal. The oil refiner is implementing a project for capacity expansion of Panipat refinery from 15 MMTPA to 25 MMTPA along with the installation of Polypropylene Unit and Catalytic Dewaxing Unit with targeted completion in second quarter of FY24-25, the company said in a statement.
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 synchronisation with the commissioning of Panipat refinery expansion, it added.
Earlier this week, IOC in a regulatory filing to stock exchanges informed that it has acquired 4.93 per cent equity stake in spot power exchange, Indian Gas Exchange (IGX). The IOC’s Board on December 20 approved the acquisition. IGX is India’s first automated national level “Gas Exchange”, which ensures transparent price discovery in natural gas and facilitates growth of natural gas in India’s energy basket. The acquisition of equity stake in IGX is a strategic opportunity for IndianOil to become part of India’s natural gas market and to increase its presence in the market.
The company operates a network of more than 15,000 km long crude oil, petroleum product and gas pipelines as well as manages one of the world’s largest oil pipeline networks. Indian Oil added 337-km of additional pipeline length during the financial year 2020-21 and plans to continuously expand the network in line with growth in business.
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