Country's largest oil firm, Indian Oil Corporation (IOC), on Thursday said it will invest Rs 9,028 crore in laying a new crude oil pipeline from Mundra in Gujarat to Panipat in Haryana and will have a capacity of 17.5 million tonnes per annum (mmtpa).
The pipeline will transport imported crude oil from the Gujarat coast to the firm's refinery in Haryana, the company said in a regulatory filing.
''Under this project, IOC would also build 9 crude oil tanks of 60,000 kilometres each at Mundra, which, apart from meeting operational requirements, would help in enhancing crude oil storage capacity in the country," the company said in a statement.
"The total estimated cost of the project is Rs 9,028 crore,'' it further said, adding the board of the company approved the investment proposal at its meeting held on December 20.
IOC is implementing a project for capacity expansion of Panipat refinery from 15 million tonne per annum to 25 million tonne along with the installation of polypropylene unit and Catalytic Dewaxing Unit with targeted completion in second quarter of FY 2024-25.
''The new pipeline system and crude oil tank storage would help in meeting the enhanced need of crude oil requirement due to the expansion of the Panipat refinery. The crude oil pipeline project is expected to be completed in synchronization with the commissioning of Panipat refinery expansion,'' it said.
IOC operates a network of more than 15,000 km long crude oil, petroleum product and gas pipelines and, as a pioneer in oil pipelines in the country, manages one of the world's largest oil pipeline networks. It added 337 km of additional pipeline length during 2020-21 and plans to continuously expand the network in line with growth in business.
Shares of IOC ended 2.80 per cent up at Rs 112.15 apiece on BSE today.