NEW DELHI: State-owned oil refiner Indian Oil Corporation (IOC) on Thursday informed that it is going to invest Rs 9,028 crore for a new crude oil pipeline system with a nameplate capacity of 17.5 MMTPA from Mundra (Gujarat) to Panipat (Haryana).
Under this project, Indian Oil will also build 9 crude oil tanks of 60,000 KL each at Mundra, which, apart from meeting operational requirements, would also help in enhancing crude oil storage capacity in the country.
“The total estimated cost of the project is Rs 9,028 crore. The Indian Oil Board, at its meeting held on December 20, 2021, has approved the investment proposal,” said the IOC in a statement.
The purpose of the company is to expand the Panipat refinery from 15 MMTPA to 25 MMTPA along with the installation of polypropylene unit and catalytic dewaxing unit with targeted completion in the second quarter of Financial Year 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 synchronisation with the commissioning of Panipat refinery expansion,” informed IOC.
Indian Oil 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.