India’s BPCL plans $2.6-billion expansion to Assam refining network

India's state-run refiner Bharat Petroleum (BPCL) is planning to boost capacity of its Numaligarh refinery in Assam's Golaghat district from 3 million tpy to 9 million tpy at an investment of $2.66 billion (Rs 16,600 crore), The Times of India reported.

The project includes a 1,350-km pipeline to bring in crude from an East Coast port. The refinery expansion is expected to cost about $1.41 billion (Rs 8,800 crore), with the remaining investment planned for laying the pipeline and other related items.

Company sources said the project would mark biggest investment in Assam and also unlock potential for exporting fuels to India's eastern region, according to the report.

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Engineers India Ltd. (EIL) was selected to prepare a feasibility report for the project and the pipeline.

The present capacity of 3 million tpy of the Numaligarh refinery is considered too small to ensure efficient operations, according to company officials. 

Though the refinery is capable of running at 3.3 million tpy, it operates at only 2.5 million tpy due to short supply of crude from Oil India Ltd., according to the report.

A capacity of 9 million tpy, however, would allow BPCL to produce more products and a higher quality of fuels required for meeting more stringent vehicle emission norms.