Oil India Sees No Issues with Diesel Exports and Equipment Imports

18 Sep 2024 CW Team

Oil India has reported uninterrupted operations in both its diesel exports to Bangladesh and the receipt of equipment for its refinery expansion project, according to Chairman Ranjit Rath.

Rath confirmed that there have been no payment issues for diesel exports, thanks to a secured letter of credit. Numaligarh Refinery Ltd (NRL), a subsidiary of Oil India, currently exports 0.1 million tonnes per annum (mtpa) of diesel to Bangladesh via a pipeline with an annual capacity of 1 million tonnes.

The expansion of NRL's refining capacity from 3 mtpa to 9 mtpa at Numaligarh in Assam is progressing as planned. Required over-dimensional cargoes for the expansion are imported through Haldia port and transported across Bangladesh to Numaligarh. Rath assured that these shipments have encountered no transit problems.

In a related development, the Adani Group has sought assistance from Bangladesh's new interim government to expedite payments for electricity supplied to the Bangladesh Power Development Board. This follows the recent transition of government in Bangladesh after the removal of Prime Minister Sheikh Hasina.

NRL aims to complete its expanded refining capacity by December 2025, with an additional six months needed for stabilization. The 1,635-km crude pipeline linking Paradip port to Numaligarh is also on track for completion by then. NRL anticipates importing approximately 5.5 mtpa of crude oil for its expanded refining operations.

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