For new Mundra-Panipat crude oil pipeline, Rs 9,028 Cr to be invested by IndianOil

IndianOil is investing Rs 9,028 crore to build a new crude oil pipeline system from Mundra, Gujarat, to Panipat, Haryana, with an installed capacity of 17.5 million metric tonnes per annum (MMTPA).

IndianOil will also construct 9 crude oil tanks at Mundra, each with a capacity of 60,000 kiloliters (KL), which will improve the country’s crude oil storage capacity in addition to satisfying operating needs. The investment plan was accepted by the IndianOil Board of Directors during its meeting on December 20, 2021, according to a company representative.

IndianOil is working on a project to increase the capacity of the Panipat refinery from 15 to 25 MMTPA, as well as add a polypropylene unit and a catalytic dewaxing unit, which is expected to be completed in the second quarter of FY 2024-25.

Due to the development of the Panipat refinery, the new pipeline infrastructure and crude oil tank storage will assist fulfil the increased demand for crude oil. The crude oil pipeline project is planned to be finished in time for the Panipat refinery expansion to be commissioned.

IndianOil administers one of the world’s biggest oil pipeline networks, with a network of more than 15,000 km of crude oil, petroleum product, and gas pipelines. IndianOil was a pioneer in oil pipelines in the nation. During the fiscal years 2020-21, IndianOil added 337 kilometres to its pipeline network, with intentions to continue expanding the network in accordance with corporate development.