Adani Ports & Indian Oil Corp to build on relationship at Mundra Port

Adani Ports and Special Economic Zone Ltd (APSEZ) has signed an agreement with Indian Oil Corp Ltd (IOCL) towards augmentation of IOC's crude oil volumes at Mundra. IOCL shall expand its existing Crude Oil Tank Farm at APSEZ's Mundra Port, thus enabling it to handle and blend additional 10 mmtpa crude oil at Mundra. This will support IOCL's expansion of its Panipat Refinery (Haryana). IOCL is raising the capacity at its Panipat Refinery by 66% to 25 MMPTA to meet India's rapidly growing energy requirements.

"Mundra Port is a major economic gateway that serves the northern hinterland of India by providing multimodal connectivity. 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 (SBM) at Mundra." said Mr Karan Adani, CEO and Whole Time Director of APSEZ.

IOCL, which accounts for nearly half of India's petroleum products' market share, has a refining capacity of 80.55 MMTPA and over 15,000 KM of pipeline network. Part of IOCL's current crude oil requirement of 15 MMTPA for its Panipat Refinery is handled at the SBM at Mundra Port. 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).

IOCL is currently operating 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 720,000 KL. The addition of 9 new tanks will augment the storage capacity to 1,260,000 KL, thus making Mundra Port by far the largest port based crude oil storage facility for IOCL. This shall be accompanied by augmentation of the MPPL pipeline capacity by IOCL to 17.5 mmtpa. IOCL Board had approved a capital expenditure of INR 9000 crore for the crude oil tanks and MPPL augmentation in December 2021.

This expansion project at Mundra Port underlines the trust of state-run IOCL in APSEZ, earned through its strategic approach of modernizing its ports, improving turnaround time, and thus creating value for its customers.

Shares of Adani Ports and Special Economic Zone Limited was last trading in BSE at Rs. 677.15 as compared to the previous close of Rs. 699.55. The total number of shares traded during the day was 538227 in over 13289 trades.

The stock hit an intraday high of Rs. 690.05 and intraday low of 664.00. The net turnover during the day was Rs. 363733921.00.

Shares of Indian Oil Corporation Limited was last trading in BSE at Rs. 112.35 as compared to the previous close of Rs. 113.25. The total number of shares traded during the day was 1673182 in over 15065 trades.

The stock hit an intraday high of Rs. 113.95 and intraday low of 111.30. The net turnover during the day was Rs. 188182266.00.

Source : Equity Bulls

Keywords

AdaniPortsandSpecialEconomicZone INE742F01042 IndianOilCorporation INE242A01010 CrudeOilTank MundraPort