IOCL to construct nine new crude oil tanks for Adani Ports -; SEZ

8 Mar 2022 , 03:43 PM

Adani Ports and Special Economic Zone Ltd. (APSEZ) has signed an agreement with Indian Oil Corp Ltd. (IOCL) towards the augmentation of IOC’s crude oil volumes at Mundra. IOCL will be extending its existing Crude Oil Tank Farm at APSEZ’s Mundra Port. This will enable APSEZ to handle and blend an additional 10 MMTPA oil at the Mundra Port.

This partnership will also further IOCL’s expansion of Panipat Refinery, Haryana. IOCL is looking forward to raising its capacity at its Panipat Refinery by 66% to 25 MMTPA to cater to India’s rapidly growing energy requirements.

Currently, IOCL has a refining capacity of 80.55 MTPA and over 15,000 Km of the pipeline network. IOCL’s crude oil requirements of about 15 MMTPA for its Panipat Refinery are handled at the SBM Mundra Port. It is operating a crude oil tank farm in an exclusive area in Adani’s Mundra Special Economic Zone, consisting of 12 tanks with a total capacity of 720,000 KL. The addition of 9 new tanks will increase the total storage capacity to 1,260,000 KL. This will make the Mundra Port by far the largest port-based crude oil storage facility for IOCL.

The total capital expenditure to be infused in the project will be ~Rs9000 crore, which has been approved by IOCL’s board earlier in December 2021.

Adani Ports & Special Economic Zone Ltd ended at Rs689.05 up by Rs11.9 or 1.76% from its previous closing of Rs677.15 on the BSE. While IOCL ended at Rs117.05 up by Rs4.7 or 4.18% from its previous closing of Rs112.35 on the BSE.