The pipeline is proposed to be constructed by Bharat Petroleum Corporation Ltd (BPCL), Oil India Ltd (OIL) and Numaligarh Refineries Ltd (NRL). BPCL and NRL boards have approved the proposal to conduct the feasibility study.
The feasibility study is expected to be completed by September and the pipeline construction in 24 months after the approval of the project. The pipeline will help save Rs 150 crore in freight.
While the funding arrangements of the project have not been announced, BPCL has, it is learnt, sought a commitment of offtake from Bongaigaon Refinery and Petrochemicals Ltd (BRPL) since it is expected to transport 600,000 tonnes of petroleum products through the pipeline.
The enhanced availability of crude oil from the Ravva field for refineries in the north-east has caused the need for a pipeline.
This is expected to increase throughput of all the refineries in the region from this financial year.
But because of the low demand for petroleum products in the region, 60-70 per cent of the north-east refineries' output is transported to consumption centres beyond Siliguri. So far, it is being done by the railways.
It is now being realised that the railways may not be able to provide additional rakes to transport the increased production.
