Guwahati, April 16: Numaligarh Refinery Limited (NRL) today signed a memorandum of understanding (MoU) with Paradip Port Trust and Indian Oil Corporation (IOCL) for import of crude oil at Paradip port in Odisha for its proposed expansion from existing 3 million metric tonnes per annum to 9 million metric tonnes per annum.

The tripartite MoU was signed between Paradip Port Trust chairman Rinkesh Roy, NRL director (technical) B.J. Phukan and IOCL executive director (pipelines) A.K. Tiwari in the presence of Union minister for road transport, highways and shipping Nitin Gadkari and minister of state (in-charge) for petroleum and natural gas Dharmendra Pradhan in Bhubaneswar today.

The Assam government was represented by finance minister Himanta Biswa Sarma and commerce and industry minister Chandra Mohan Patowary. NRL managing director P. Padmanabhan and IOCL director (pipelines) Aneesh Agarwal were also present.

A NRL statement said under the project, a 28-inch diameter 1,400km crude oil pipeline of 1 million metric tonnes capacity will be laid for transporting 6.0 million million metric tonnes of imported crude oil from Paradip Port to Numaligarh.

The NRL has planned to increase refining capacity from three to 9 MMTPA by installing a new train of process units on its existing refinery premises at Numaligarh in order to meet the growing demand of petroleum products in eastern India and to achieve economic scale of operation.

The expansion proposal also includes a product pipe-line from Numaligarh to Siliguri of around 650km. The project completion timeline is four years from the date of obtaining investment approval.

Sources said the cost involved in the project is estimated to be Rs 22,788 crore.

The board of directors of both NRL and its holding company, Bharat Petroluem Corporation Limited, has accorded in-principle approval for pursuing the project and recommended to seek financial assistance from the government.

The refinery expansion proposal is currently under consideration at the ministry of petroleum and natural gas for financial assistance and investment approval.

The detailed feasibility report for the refinery expansion project has been completed by EIL and financial feasibility study was carried out by SBI Capital Markets Ltd.

Paradip Port Trust will extend land space for installation of crude storage tanks, pump house and township .