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Current Initiatives

1.      Installation of Diesel Hydrotreater Unit

India is rolling out Bharat Stage IV emission norms in the entire country from April 2017.  To meet the upgraded emission requirements, NRL is installing a new Diesel Hydrotreater (DHT) Unit of 0.7 MMTPA capacity for production of BS IV grade HSD at 100% capacity of the refinery. The new DHT unit is being set up at a cost of Rs. 1,031.37 crores and is targeted to be completed by January 2018. As on 31.08.2016, overall physical progress has reached 34.9% and 32 milestones have been achieved against total 61 milestones for the project.

2.      Refinery Capacity Expansion from 3.0 to 9.0 MMTPA

Demand of auto fuel has increased rapidly during the past 14 years. While HSD consumption is growing at a steady CAGR of 4.6%, MS growth has increased rapidly at a CAGR of 7.6% during this period. To meet the growing demand, particularly in the North East and Eastern part of the country where NRL supplies its products, NRL has planned for expansion of its refinery from 3.0 to 9.0 MMTPA. Through this expansion, the refinery will also achieve economic scale of operation. In addition to increasing refining capacity, the expansion project includes construction of two cross-country pipelines: a) crude pipeline of 6 MMTPA capacity and 1,398 km length from Paradip (Odisha) to Numaligarh (Assam) for transporting imported crude oil to the refinery, and b) product pipeline of 6 MMTPA capacity and 650 km in length from Numaligarh to Siliguri for evacuation of product. It is envisaged that construction of the crude pipeline will ensure crude oil security to all four North East refineries at a time when these refineries are operating below their installed capacities due to declining domestic crude oil production in the region. The estimated cost for implementing the expansion project and associated pipelines is in the range of Rs. 22,000 crore. The expansion proposal has been approved by both the Boards of NRL and its holding company BPCL. The Ministry of Petroleum and Natural Gas (MoPNG) will put up the proposal for the Public Investment Board's (PIB) approval and for which the draft PIB note is being circulated within various departments of the Ministry.

3. Bio-refinery Project

NRL plans to set up a bio-refinery at Numaligarh for production of fuel grade Ethanol from Bamboo which is locally available in abundance in this region.The technology for the bio-refinery will be provided by M/s Chempolis Oy of Finland. This initiative is a pioneering effort which will use this new technology for conversion of ligno-cellulosic bio-mass to ethanol for the first time in the country in a commercial scale. Besides ethanol, the bio-refinery will also produce furfural, acetic acid and bio-coal. The plant shall have capacity to process 300 TMT of Bamboo (Bone Dry) and shall produce 49 TMT of Ethanol together with associated platform chemicals.The feedstock will be sourced primarily from Assam, Nagaland, Arunachal Pradesh and Meghalaya. The bio-refinery is proposed to be set up by way of a Joint Venture company with 50:50 equity participation of NRL and Chempolis Oy & Associates at an estimated cost of Rs. 950 crores.Term sheet for the JV has been signed. JV agreement is expected to be finalised shortly.

4. Product Pipeline from Siliguri (India) to Parbatipur (Bangladesh)

NRL and Bangladesh Petroleum Corporation has entered into a MoU for setting up a 130 KM product pipeline from Siliguri Marketing Terminal in India to Parbatipur in Bangladesh. Route survey and detailed feasibility report for the pipeline has been completed. The estimated cost involved in laying the pipeline is Rs. 321 crores. The project is under Ministerial consultation between the two countries. In the meantime NRL has dispatched a rake of around 2200 MT of High Speed Diesel to Bangladesh on 17th Mar'16. Product for export to Bangladesh on a sustained basis will be available after expansion of Numaligarh Refinery from 3 to 9 MMTPA.

5.      Marketing and other initiatives

NRL has taken up initiatives to export its product to its neighboring countries. Paraffin wax produced from the recently commissioned wax plant at Numaligarh has been exported to Nepal, Kenya and Mexico. Potential markets in Brazil, Americas, Mozambique and other East African countries are also being explored for exporting wax.

6.      Investment in Exploration and Production

NRL plans to enter into the upstream E&P sector and has initiated action to participate in the Discovered Small Oil & Gas Field bid round 2016 issued by the Directorate General of Hydrocarbons (DGH) of the Govt. of India.

7.      Nursing School at Numaligarh

As part of its CSR initiative, NRL is setting up a Nursing School at Numaligarh, Assam. The proposed 'VK NRL Nursing School' shall be managed by the 'VK-NRL Nursing School Trust' comprising of members from NRL and Vivekananda Kendra. Construction of the school building has started and the school building is expected to be completed by December 2017. The school is targeted to be opened from 2018-19 academic sessions. In addition to the above initiative, NRL has already provided full sponsorship to a batch of 14 girl students for undertaking ANM (Auxiliary Nursing & Midwifery) & GNM (General Nursing & Midwifery) courses during 2015-16. For 2016-17, 20 seats in GNM and three in B.Sc. Nursing courses have also been reserved for aspiring students from surrounding areas of the refinery.

Current initiatives as on September, 2016

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