BPCL arm to build India's first cross-country pipeline

Numaligarh Refineries' project to ensure sustained supply of petroleum products to Bangladesh

India's first cross-country pipeline will connect to Bangladesh. Assam-based Numaligarh Refineries Limited (NRL), a subsidiary of Bharat Petroleum Corporation Limited (BPCL), will shortly begin work on laying a product pipeline from Siliguri in West Bengal to Parbatipur in Bangladesh.

The pipeline would allow BPCL to penetrate the Bangladeshi market and ensure sustained supply of petroleum products to Bangladesh.

The length of the pipeline would be approximately 170 km and NRL would export high speed diesel (HSD), and motor spirit to Bangladesh.

"NRL is preparing a detailed feasibility report, which is expected to be completed by December 2014," company spokesperson said in an emailed reply. NRL will also begin exporting petroleum products to Nepal, Bangladesh and Myanmar next year. The company's proximity to these three countries offers a natural market for its products.

"NRL is expanding; so we will be able to export our products to our neighbours - Nepal, Myanmar and Bangladesh," said an official from the company.

NRL is expanding from its current level of three million tonnes per annum (mtpa) to nine mtpa. BPCL will spend about Rs 13,000 crore on expanding the refinery by 2017-18. Earlier this year, the company had signed an agreement with Nepal-based Birat Petroleum Pvt Ltd (BPPL) for sale of HSD and motor spirit. The products will be sent from Siliguri marketing terminal to Biratnagar, Nepal. NRL is expected to sell about 100 kilo litres of MS and 5,000 Kilo litres of HSD a month to BPPL. NRL's foray into Nepal markets is a strategic move to generate market for its products in view of its proposed expansion. The total demand of petroleum products in Nepal is about 1 mtpa.

Till now, Indian Oil Corporation (IOC) was the only supplier of petroleum products to Nepal. IOC sells petroleum products to Nepal Oil Corporation.

The Nepal petroleum products market is one million tonnes. "Initially, we plan to sell 100,000 tonnes of petroleum products - mainly high speed diesel and to a smaller quantity, petrol. We are looking at it more as a strategic move," said the NRL official quoted above.

BPCL also plans to lay a 1,338-km, 6-mtpa pipeline from Dhamra Port in Odisha to Numaligarh to feed the expanded refinery with imported crude oil. NRL has so far been dependent on crude from the oil fields in the north-eastern region.