Numaligarh Refinery Limited inks pipeline ‘Right to Use’ sharing agreement with Indradhanush Gas Grid Limited

New Delhi: A pipeline ‘Right to Use (RoU)’ sharing agreement was inked between Numaligarh Refinery Limited (NRL) and Indradhanush Gas Grid Limited (IGGL), which is a joint venture of NRL with Indian Oil Corporation (IOCL), Oil & Natural Gas Corporation (ONGC), Gas Authority of India Limited (GAIL) and Oil India Limited (OIL), on 21st October 2021.

The agreement, a mutually beneficial arrangement for both organizations, was signed by General Manager (Project), NRL Shri P J Sarmah and Chief Project Manager, IGGL Shri Pankaj Patowary in the presence of Director (Technical), NRL Shri B J Phukan; Director (Finance), NRL Shri Indranil Mittra; CEO, IGGL Shri A K Thakur and senior officials from both organizations.

NRL is in the process of laying the 1,630 KM long ParadipNumaligarh Crude Pipeline (PNCPL), a crude pipeline originating from Paradip Port in Odisha and traversing through West Bengal, Jharkhand, Bihar, before terminating at its refinery in Numaligarh (Assam). The pipeline project is a crucial part of NRL’s mega Integrated Refinery Expansion project for capacity expansion from 3MMTPA to 9 MMTPA, which is being executed with an investment of more than Rs. 28,000 crores.

IGGL is executing the laying of a natural gas pipeline from Guwahati to Numaligarh as part of its marquee project for connecting India’s North-east Region (NER) with the National Gas Grid. IGGL’s natural gas pipelines will connect Guwahati to major cities of NER like Itanagar, Dimapur, Kohima, Imphal, Aizwal, Agartala, Shillong, Silchar, Gangtok and Numaligarh.

NRL and IGGL’s pipeline sharing agreement leverages synergies between the PNCPL project and NER Gas Grid project as the pipelines share a common route from Baihata (North Guwahati) to Numaligarh for around 386 KM. The RoU model streamlines land acquisition and resource sharing for optimal execution of pipeline laying work and subsequently, efficient operations of the pipeline. This pact follows NRL’s earlier pipeline RoU sharing agreement with GAIL, signed on 14th October 2020, for a 550 KM stretch from Purnia in Bihar to Baihata, also a part of the Pradhan Mantri Urja Ganga Project.

These agreements form important milestones in the Government of India’s Hydrocarbon Vision 2030 for North-east India which seeks to leverage the region’s hydrocarbon potential for enhancing access to clean fuel in line with NER’s growing demand for petroleum products, and also underline NRL’s key role in ushering in socio-economic development of the region.