IndianOil invests on new crude oil pipeline for infrastructure expansion

The facility will connect the cities of Mundra and Panipat to expand the fuel storage capacity of the company in the country.

IndianOil has announced it is setting up a new crude oil pipeline system with a nameplate capacity of 17.5 million metric tonnes per annum (MMTPA) from the cities of Mundra to Panipat. Under this project, the firm would also build nine crude oil tanks of 60,000 kilolitres each at Mundra, which, apart from meeting operational requirements, would also help in enhancing crude oil storage capacity in the country.

Its construction estimated an investment of 9,028 crore rupees, which translates into roughly 1.200.00 million US dollars, an amount that was approved by the IndianOil Board in their last meeting.

The company is currently implementing a project for capacity expansion of the Panipat-located refinery from 15 MMTPA to 25 MMTPA along with the installation of Polypropylene Unit and Catalytic Dewaxing Unit. The new crude oil pipeline is expected to help in meeting the enhanced need of crude oil requirement of this process and to be completed in synchronization with the commissioning of this expansion, expected by the second quarter of the 2024-2025 fiscal year.

Currently, IndianOil operates a network that consists of more than 15,000 kilometres long of crude oil, petroleum product and gas pipelines. During 2020 and 2021, the company added a total of 337 kilometres of additional pipeline length in order to continuously expand the network in line with growth in business.