NRL expansion project: 75% work done, expected to finish by year-end

Guwahati, Mar 24: Over 75 per cent of the mega expansion project of Numaligarh Refinery has been completed, and the project is expected to be completed by the end of this year. After completion, the NRL, in addition to catering to the needs of the Northeast, will also export petroleum products to the neighbouring countries.

Numaligarh Refinery Limited (NRL) sources told The Assam Tribune that after the completion of the expansion project, the refining capacity of the refinery would increase from 3 MMTPA to 9 MMTPA. The anticipated cost of the expansion project is around Rs 33,901 crore.

This strategic expansion aligns with India's growing energy demand and strengthens NRL's role as a key player in the petroleum sector.

As part of this project, NRL is establishing a new 6 MMT-PA refinery designed to process imported crude oil. The refinery's advanced configuration will enable the production of petrochemical feedstock – propylene – marking NRL's entry into the petrochemical sector. This will pave the way for a polypropylene production unit, reducing India's dependence on imports to meet domestic demand.

To facilitate the supply of imported crude oil, a 1,640 km pipeline from Paradip (Odisha) to Numaligarh is under construction. This pipeline, one of the longest crude oil pipelines in India, traverses through Odisha, West Bengal, Jharkhand, Bihar, and Assam and is expected to ensure a steady supply chain for the expanded refinery.

It is envisaged that this crude oil pipeline will create an energy corridor for the Northeast by connecting hinterland refineries in Assam with a seaport. The pipeline is designed to carry additional crude oil to facilitate future capacity expansion of other Assam refineries.

NRL's expansion project will significantly boost industrial growth, create employment opportunities, and contribute towards enhancing Assam's role in energy production and supply.

Sources said that as of February 28, 2025, the overall physical progress of the NRL's expansion project reached 75 per cent. The project is targeted for completion by December 2025, and production is expected to be stabilised in the next six months' time. All major engineering, procurement, and construction activities are progressing in full swing.

Out of the 16 over-dimensional and overweight consignments (ODC/OWC) required for the Numaligarh Refinery Expansion Project (NREP), 14 have already reached Numaligarh via a multi-modal transportation route. These consignments, originating from fabrication plants in Western India, have been transported through intricate sea-river-land logistical networks, travelling via the Arabian Sea, Bay of Bengal, and the Brahmaputra River before reaching the final destination at Numaligarh.

Successful multimodal transportation of ODC/OWC highlights a logistical marvel in waterways transportation, demonstrating the potential of India's inland water transport infrastructure in handling complex and heavy industrial cargo. The seamless movement of these consignments bears testimony to NRL's commitment towards adopting innovative logistical solutions for efficient project execution.

In the context of the progress of the Paradip-Numaligarh Crude Oil Pipeline (PNCPL), sources said that 1,267 km of the pipeline has already been laid. A significant engineering feat was achieved with the completion of India's longest horizontal directional drilling (HDD) – stretching over 4 km for a 26-inch pipeline, while crossing the Ganga River. This milestone highlights the project's technical excellence and reinforces the company's commitment towards executing large-scale infrastructure projects with minimal environmental impact.

Replying to a question of whether the NRL would also export products, sources said that products from NRL's expanded capacity will primarily cater to domestic markets in eastern India, including the northeastern states, West Bengal, Bihar, Jharkhand and eastern parts of Uttar Pradesh. Surplus products after meeting domestic demand are planned to be exported to neighbouring countries such as Bangladesh, Nepal, and Myanmar. The existing 'India-Bangladesh Friendship Pipeline' (IBFPL) will continue to be utilised for petroleum product export to Bangladesh.

The NRL would have to use imported crude to run the expanded refinery. To meet the increased crude oil requirement post-expansion, NRL has planned to process imported crude oil, for which the PNCPL project is being implemented. The NRL will diversify its crude sourcing strategy by procuring the raw material from international suppliers from global markets for cost efficiency and supply security.

The NRL will also continue sourcing crude from indigenous oil fields operated by the ONGC and OIL to the extent available to ensure a balanced crude mix.

By

R Dutta Choudhury