Last Updated on: 08/04/2024

1. Refinery Expansion from 3 to 9 MMTPA: NRL is executing a major expansion project of capacity augmentation from present 3.0 MMTPA to 9.0 MMTPA. The expansion proposal was approved by the Cabinet Committee on Economic Affairs (CCEA) on 16.01.2019. The approved cost of the project to Rs. 28,026 crores. Govt. of India has also approved an amount of Rs. 1,020 crores as capital subsidy for the project. This is one of the biggest investments in Oil & Gas sector of Northeast India and is a part of Government of India’s Hydrocarbon Vision 2030 for the Northeast region to help meet growing demand of petroleum products in the region. NRL’s refinery expansion will increase overall crude oil processing capacity and it is scheduled to be completed by July 2024. The expansion project has been segregated into two parts, namely, a) 6 million refinery at Numaligarh and b) Paradip-Numaligarh Crude pipeline (1630 KM length) along with crude oil import terminal at Paradip in Odisha. Financial closure for the project has been achieved on 30.12.2021 with signing of rupee term loan agreement of Rs. 18,904 crores with a consortium of 12 banks led by State Bank of India.

a) Setting up a new 6 MMTPA refinery at Numaligarh, Golaghat, Assam.

NRL is executing a major expansion project of capacity augmentation from present 3.0 MMTPA to 9.0 MMTPA by installing a new train of processes of 6 MMTPA capacity refinery by processing of Arab Light (AL) and Arab Heavy (AH) crude oil (AL: AH=30:70). Approved cost of the project is Rs. 18,968 crores. As on 29th February 2024, the physical progress is 53.4% and financial progress is 49.77%.

b) Construction of Paradip-Numaligarh Crude Oil pipeline of 1630 km in length and 8 MMTPA capacity.

The required additional quantity of crude oil is planned to be imported through Paradip Port in Odisha. A cross country pipeline of around 1630 km shall be laid from Paradip Port to Numaligarh for transporting 8 MMTPA of imported crude. Approved cost of the project is Rs. 9,058 crores. As on 29th February 2024, the physical progress is 66.8% and financial progress is 76.07%.

2. Petrochemical Project:

NRL is implementing its first petrochemical project to set up a Poly Propylene Unit (PPU) of 360 KTPA capacity at an approved cost of Rs. 6,555 crores. The investment approval for the project was obtained in March 2022 and licensor for the process unit has been selected. The project is anticipated to be completed in FY 2025-26.

3. Bio-Refinery Project: NRL, in collaboration with two other foreign investors, have formed the Joint Venture Company - “Assam Bio-refinery Private Limited (ABRPL)’ which is setting up a second-generation bio-refinery at Numaligarh, Assam to produce ethanol from non-food grade feed stock bamboo. The shareholding pattern of the JV Company is- NRL 50% and remaining 50% between Fortum BV3 and Chempolis Oy of Finland. The plant shall have a capacity to process 300 TMTPA of Bamboo (dry basis) and shall produce 49 TMTPA of ethanol along with associated chemicals and power. The bio refinery project aims to reduce greenhouse gas emissions, reduce crude oil import dependency, and achieve forex savings, provide remunerative income to farmers, and create employment opportunities by way of engagement of local population in the region. It is envisaged that large scale livelihood employment opportunity will be generated in bamboo farming, harvesting and transportation. Ethanol produced from the plant will substitute petrol and thereby reduce import of crude required for production of petrol in the country. The approved cost of the project is Rs. 3,250 crores. The project has received sanction of Rs 150 crore from the Central government under viability gap funding. The project is anticipated to be completed by July 2024. As on 29th February 2024, the overall physical progress was 94% and financial progress was 76.38%.

4. North East Gas Grid (JV investment): A Gas Grid connecting all State capitals in the North Eastern region is being constructed to supply PNG and CNG in the region. A trunk gas pipeline from Barauni to Guwahati will connect NE Gas Grid to the National Gas Grid. A JV Company has been incorporated as “Indradhanush Gas Grid Limited” with equal equity participation from IOCL, GAIL, ONGC, OIL and NRL. NRL’s refinery expansion has been considered as an anchor customer, constituting around 50% of the total throughput of the pipeline grid. The Cabinet Committee of Economic Affairs (CCEA) of the Government of India, in January 2020, has approved the project for implementation at a cost of Rs. 9,265 crores out of which Rs. 5559 Cr 60% granted as Viability Gap Funding (VGF). A total of 1,656 km of gas pipeline will be laid as part of the project. The project is being implemented in three phases: Phase-I: Sections with plain agricultural terrain and no EC requirement (Guwahati, Numaligarh, Itanagar, Dergaon /Jorhat, Dimapur) Phase-II: Section in hilly terrain and having requirement of EC (Shillong, Silchar, Panisagar, Banaskandi, Agartala, Aizawl) Phase-III: Sections in hilly terrain, requirement of EC and feasibility of laying pipeline linked to highway width widening (Dimapur, Kohima, Imphal). The project is scheduled to be completed by March 2025. As on 29th February 2024, the overall physical progress was 80.40% and financial progress was 57.77%.