Dhaka, Bangladesh (BBN)-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.
After the completion of the work, India’s first cross-country pipeline will connect to Bangladesh, reports energysector.in.
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.
The company 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.
Numaligarh Refinery is expanding from its current level of three million tonnes per annum (mtpa) to nine mtpa. BPCL will spend about INR 13,000 crores on expanding the refinery by 2017-18.
The company had also 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 in 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.
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.
BBN/ANS-02Sept14-9:30pm (BST)