NRL is a joint venture between BPCL, Oil India and the Government of Assam


Numaligarh refinery expansion project aims to increase refining capacity to nine million metric tons per year. (Credit: SatyaPrem from Pixabay)

Numaligarh Refinery (NRL) has secured received environmental approval from the Indian Ministry of Environment, Forest & Climate Change for the INR225.94bn ($3.01bn), refinery expansion project.

NRL is a joint venture between Bharat Petroleum (BPCL) with 61.65% stake, Oil India holding 26% interest and the Government of Assam with 12.35% stake.

Planned to be completed by 2024, the Numaligarh refinery expansion project aims to increase the refining capacity from three to nine million metric tons per year.

SBI Capital selected for debt syndication of $2bn for expansion project

Additionally, NRL has appointed SBI Capital Markets for INR151.02bn ($2.01bn) of debt syndication for the refinery expansion project.

NRL said in a press statement: “Lining up of Technical Management Consultant for Refinery Expansion Project, EPCM for Pipeline project, licensors for Fluid Catalytic Cracking Gasoline Desulphurisation Unit (FCC-GDS) and Motor Spirit (MS) Block and allocation of 200 acres of land to set up Crude Oil Terminal in Paradip are other significant developments in implementation of the integrated mega refinery expansion project.”

The expanded facility will comprise a 6Mtpa combined crude distillation unit, vacuum distillation unit (VDU) for primary processing, a 1.98Mtpa hydrocracker unit (HCU), a 0.97Mmtpa naphtha hydrotreater, a 0.61Mtpa continuous catalyst regeneration unit and a 0.348Mtpa naphtha isomerization unit.

The refinery expansion project involves the construction of two cross-country pipelines, including a 654km product pipeline from Numaligarh to Siliguri (West Bengal) and a 1,398km crude oil pipeline from Paradip (Odisha) to Numaligarh.

NRL managing director S K Barua said: “Stringent monitoring of the aforesaid projects taking into consideration lockdowns, travel restrictions, logistic disruptions and migrant worker availability will be critical to ensure their scheduled completion and commissioning.”

The refinery expansion project forms part of the government’s Hydrocarbon Vision 2030 for North-East. The initiative aims to double the oil and gas production and expand the clean fuel production capacity in the region by 2030.