M/s DNP Limited (Natural Gas Pipeline Project from Duliajan to Numaligarh)

NRL has initiated actions for substitution of Naphtha by natural gas as feed and fuel. Substitution of Naphtha by natural gas is expected to improve net refining margin of the Company. In this regard, NRL has signed agreements with M/s OIL for supply of 1.0 MMSCMD of natural gas to Numaligarh Refinery and with M/s Assam Gas Company Limited (AGCL) for transportation of natural gas from Duliajan to Numaligarh through a new pipeline. For implementation, operation and maintenance of the natural gas pipeline, a joint venture Company was incorporated on 15 th June’07 in the name and style of M/s DNP Limited with equity participation of 51% by AGCL, 26% by NRL and 23% by OIL. The estimated project cost is Rs 318 crores. During 2008-09, NRL had completed entire payment towards its share capital amounting to Rs. 27.56 crores in the joint venture project. The Natural Gas Pipeline project is expected to be completed within 2009-10.

In order to implement the proposed Assam Gas Cracker Project at an estimated cost of Rs. 5461 crores, a new joint venture company M/s Brahmaputra Cracker & Polymer Company Limited (BCPL) was incorporated on 08.01.07 with equity participation from GAIL (70%), OIL (10%), Government of Assam (10%) and NRL (10%). NRL will also supply 160 TMT of petrochemical grade Naphtha per annum to the proposed Gas Cracker project as feed. The ‘Feed-Stock-Supply-Agreement’ was signed between NRL and M/s BCPL on 19.09.07. NRL’s total equity contribution in the joint venture is estimated at Rs. 110.00 crores and upto 30.06.09 the Company had contributed Rs. 32.47 crores towards its share capital. The Gas Cracker project is scheduled for completion by 2012.