No disruption in diesel export to Bangladesh: Oil India Chairman

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The export of diesel to Bangladesh from the Assam-based Numaligarh Refinery Limited (NRL) remains unaffected despite the crisis ongoing in the country, said Chairman Ranjit Rath on September 14. State-run Oil India Limited’s (OIL) subsidiary NRL exports diesel to Bangladesh via a pipeline.

Rath said a letter of credit is in place for supplies of diesel to Bangladesh. The Assam-based refinery supplies diesel to the country through a pipeline connecting its Siliguri marketing terminal with Parbatiput in Bangladesh.

NRL’s Managing Director Bhaskar Jyoti Phukan had told Moneycontrol in August that he expects business with Bangladesh to be unaffected by the crisis as the two countries are closely linked by vital trade relations.

Rath also confirmed that its subsidiary’s refinery expansion plans are on track and are set to be commissioned by December 2025. NRL is increasing capacity at its refinery by 6 million tonnes per annum to 9 MTPA to support India's rising energy needs.

Apart from refinery expansion, NRL is also setting up a crude oil import terminal at Paradip on the Odisha coast and laying a 1,640 km pipeline to transport imported crude oil to its home base Numaligarh, in Golaghat district.

NRL is also setting up the country’s first biofuel refinery which would use bamboo as feedstock. When asked if government would introduce new pricing system for 2G ethanol, Rath declined to comment, stating the government would take a call on the matter.

Rath said that the exploration and production giant OIL is targeting to drill more than 75 wells during the current financial year 2024-25, compared to 61 wells drilled in the previous year by the company.