NEW DELHI: State-run IndianOil is augmenting its crude storage facility at Adani Ports and Mundra Special Economic Zone (APSEZ) in Gujarat at an investment of Rs 9,000 crore as the threat of disruption in Russian supplies keeps the global oil market on the edge.
IndianOil will build nine additional tanks to add 10 million tonnes of storage capacity to the existing facility at the SEZ and raise the Mundra Panipat crude pipeline capacity to 17.5 million tonnes per annum, APSEZ said in a statement on Tuesday.
The expanded capacity will support the expansion of IndianOil’s refinery at Panipat in Haryana. The refinery capacity is being raised by 66% to 25 million tonnes per annum in view of the growing demand for fuels and other petroleum products.
“Mundra port is a major economic gateway that serves the northern hinterland of India by providing multimodal connectivity. As IndianOil’s trusted long-term partner, APSEZ is well equipped to handle the additional 10 million tonne per annum crude at our existing single buoy mooring (SBM) at Mundra,” an APSEZ statement quoted chief executive Karan Adani as saying.
IndianOil’s existing storage capacity stands at 720,000 kl (kilolitres). The additional tanks will augment the capacity to 1,260,000 KL, making Mundra Port the largest port-based crude oil storage facility for IndianOil.
The Mundra SBM is located 3-4 km off the coast where VLCCs (very large crude carriers) unload oil. An undersea pipeline then transports the oil from the SBM to the tank farm and thereafter to the Panipat refinery through the Mundra-Panipat pipeline.