IOC to construct 9 new crude oil tanks at Adani's Mundra port

Adani Ports and Special Economic Zone Ltd (APSEZ) on Tuesday said it has signed an agreement with Indian Oil Corp Ltd (IOC) for the latter to augment its crude oil volumes by building new tanks at APSEZ's Mundra port in Gujarat.   IOC currently operates 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 7,20,000 KL.   "The addition of 9 new tanks will augment the storage capacity to 12,60,000 KL, thus making Mundra Port by far the largest port based crude oil storage facility for IOCL," APSEZ said in a release.   The expansion will enable IOC to handle and blend additional 10 million metric tons per annum (mmtpa) crude oil at Mundra. This will support IOC's expansion of its Panipat refinery in Haryana.   IOC is raising the capacity at its Panipat refinery by 66 per cent to 25 mmpta to meet India's rapidly growing energy requirements. Part of IOC's current crude oil requirement of 15 mmtpa for its Panipat refinery is handled at the single buoy mooring (SBM) in Mundra port, the release said.

Also Read: Future Enterprises gets court nod for stake sale in Generali insurance venture   "The Mundra SBM is located 3-4 km off the coast where Very Large Crude Carriers (VLCCs) unload crude oil. An undersea pipeline then transports this crude oil from SBM to the Crude Oil Tank Farm and thereafter to the refinery at Panipat via the Mundra Panipat Pipeline (MPPL)," it added.   The addition of new crude oil tanks will be accompanied by augmentation of the MPPL pipeline capacity by IOC to 17.5 mmtpa. Its board had approved a capital expenditure of Rs 9,000 crore for the crude oil tanks and MPPL augmentation in December 2021.   Commenting on the partnership, APSEZ CEO and Whole Time Director Karan Adani said, "It gives us immense pride to strengthen our partnership further and support IOCL, which plays a vital role in ensuring the energy security of the nation. As IOCL's trusted long-term partner, APSEZ is well equipped to handle the additional 10 mmtpa crude oil at our existing single buoy mooring at Mundra."   Shares of APSEZ were trading 0.36 per cent higher at Rs 679.60 during the afternoon trade on Tuesday at the BSE, while IOC shares were trading at Rs 116, up 3.25 per cent from its previous close.

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