Oil India shares gain on completion of pipeline project, agreement with NEEPCO

Oil India share price gained in the opening trade on October 14 following the company completed the Numaligarh–Siliguri product pipeline project and also signed a long-term agreement with NEEPCO.

At 09:17am, Oil India was quoting at Rs 419.45, up Rs 3.10, or 0.74 percent, on the BSE.

The company announced the upgradation of facilities of the Numaligarh–Siliguri Product Pipeline (NSPL), which aims to enhance the transportation capacity of the existing pipeline from 1.77 Million Metric Tonnes Per Annum (MMTPA) to 5.5 MMTPA, thereby strengthening company's midstream infrastructure to handle increased product flows from the Numaligarh refinery, company said in its exchange filing.

This achievement supplements the successful execution of the ongoing Numaligarh Refinery Expansion Project by Numaligarh Refinery (NRL) which will increase the refinery capacity from 3.0 MMTPA to 9.0 MMTPA, it added.

In another development the company signed a long-term firm gas sale and purchase agreement (GSPA) with North Eastern Electric Power Corporation (NEEPCO) for continued supply of 1.4 MMSCMD of natural gas to NEEPCO’s Assam Gas Based Power Station (AGBPS) at Bokuloni, Dibrugarh for another 15 years.

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Last week, Oil India and Mahanagar Gas signed a Memorandum of Understanding (MoU) to explore opportunities across the LNG value chain and in emerging clean energy areas.In the month of September, the company signed a MoU with GAIL (India) to strengthen cooperation across the natural gas value chain and unlock synergies for expanding access to cleaner energy across the country. Ans also announced the occurrence of natural gas in its 2nd exploratory well Vijayapuram-2 (Loc. OAEA), drilled in the Offshore Andaman Block AN-OSHP-2018/1 under the Open Acreage Licensing Policy (OALP).