Punj Lloyd to build Rs 330 cr process facilities for crude

Punj Lloyd Group, a leading engineering, procurement and construction (EPC) conglomerate, today announced winning an order for process facilities & utilities at an upcoming crude oil storage cavern in Mangalore, Karnataka aggregating Rs 330 crore.

This is the first cavern project for the Group and has been awarded by Indian Strategic Petroleum Reserves Limited, a wholly owned subsidiary of Oil Industry Development Board, Ministry of Petroleum and Natural Gas, a company statement said here.

The scope of work for the project involves engineering, procurement, construction and commissioning of systems for crude oil receipt, pumping out, metering, recirculation, heating, waste water treatment, utilities production, flaring and operation buildings. The Mangalore crude oil storage will comprise two separate but identical underground caverns, each approximately 900 metres long, having a total capacity of 1.5 MMT (Million Metric Tonnes) of crude oil.

The project, located near Mangalore Refinery and Petrochemicals Limited, is scheduled to be completed within a period of 29 months, the release said.

 "Punj Lloyd has turnkey in-house expertise of working on storage facility projects. We have constructed over 300 tanks globally, with over eight million m3 of storage capacity. We are proud to be a part of this strategic initiative of the Government of India to build reserves of crude oil at important locations, which will feed a cluster of refineries," Punj Lloyd's Director, P K Gupta said.

The Ministry of Petroleum and Natural Gas plans to store 5.33 million tonnes of imported crude oil in these crude reserves, based on a 15 day crude oil requirement of all the refineries in the country. The crude oil reserve near Mangalore will cater to the requirements of refineries of Mangalore Refineries & Petrochemicals Ltd (MRPL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).

With this contract, the order backlog for the Punj Lloyd Group on  consolidated basis has gone up to Rs 25,739 crore.

The Punj Lloyd Group is a diversified international conglomerate offering EPC services in energy and infrastructure, along with engineering and manufacturing capabilities in the defence sector.