Infrastructure player Punj Lloyd today said it has bagged a Rs 330 crore order from Ministry of Petroleum and Natural Gas for process facilities & utilities at an upcoming crude oil storage cavern in Mangalore.
"This is the first cavern project for the Group and has been awarded by Indian Strategic Petroleum Reserves (ISPR), a wholly owned subsidiary of Oil Industry Development Board, Ministry of Petroleum and Natural Gas," Punj Lloyd said in a statement.
The project, located near Mangalore Refinery and Petrochemicals Limited, is scheduled to be completed within a period of 29 months.
The scope of work for the project involves engineering, procurement, construction and commissioning of systems for crude oil receipt, pumping out, metering, recirculation, heating, waste water treatment, utilities production, flaring and operation buildings, it said.
The Mangalore crude oil storage will comprise two separate but identical underground caverns, each about 900 metres long, having a total capacity of 1.5 million tonnes of crude oil.
On winning the contract, Director, Punj Lloyd, P K Gupta, said: "We have constructed over 300 tanks globally, with over eight million m3 of storage capacity. We are proud to be a part of this strategic initiative of the Government of India to build reserves of crude oil at important locations, which will feed a cluster of refineries".
The Ministry of Petroleum and Natural Gas plans to store 5.33 million tonnes of imported crude oil in these crude reserves, based on a 15 day crude oil requirement of all the refineries in the country.
The crude oil reserve near Mangalore will cater to the requirements of refineries of Mangalore Refineries and Petrochemicals Ltd (MRPL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).
With this contract, the order backlog for the Punj Lloyd Group on a consolidated basis has gone up to Rs 25,739 crore, the company said.