Indian Oil Malkapur terminal likely to go on stream in 2023

02 Jan 2023 CW Team

With an investment of $6110 million, Indian Oil Corporation is building a petroleum terminal in Malkapur, close to Hyderabad, and it's expected to start operating in 2019.

The terminal is anticipated to provide Indian Oil power over Telangana's fuel supplies because it will serve as the terminus for the 1,212-km product pipeline from Paradip to Hyderabad. Executive Director and State Head of India Oil for Telangana and Andhra Pradesh B.Anil Kumar stated on Wednesday that "by December 2023, we will be able to commission the terminal... deliver our own product.

The $3.3 billion pipeline will transport gasoline and diesel from the public sector oil company's Paradip refinery in Odisha to Hyderabad, one of the key consumption zones, and connect Visakhapatnam, Vijayawada, and a few other places in Andhra Pradesh along the way.

Beginning this month, Vijayawada will begin receiving diesel supply via pipeline. In his first media interview since taking over as Executive Director in September, Mr. Anil Kumar stated, "The pipeline work has been finished and tankage work is ongoing in Malkapur." 0.180 million kiloliters of storage space will be available at the terminal.

The pipeline and terminal are anticipated to lessen Indian Oil's reliance on Hindustan Petroleum Corporation's Visakhapatnam-Hyderabad pipeline for fuel supplies in Telangana once they are operational. Indian Oil will also relocate the operations of its Cherlapally terminal, which is close to Hyderabad. But it's unlikely that the Cherlapally complex will be shut down, he continued.

In response to questions, he stated that Telangana's consumption of gasoline and diesel exceeded pre-COVID retail sales levels. In comparison to the same period last fiscal year, gasoline consumption from April through November increased by 13.2%. In the same time frame, retail diesel usage increased by 10.2%. Around 0.123 million tonnes of gasoline and 0.266 million tonnes of diesel are sold on a monthly average.

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