Oil India Limited’s subsidiary Numaligarh Refinery Limited (NRL) is set to undergo a major capacity enhancement, expanding from the current 60,000 barrels per day (BPD) to 180,000 BPD by December 2025. This strategic upgrade marks a significant step in boosting production capabilities, refining efficiency, and addressing growing energy demands in Northeast India and beyond.
Key Highlights Of The Numaligarh Refinery Expansion
The refinery capacity will triple to 180,000 BPD by the scheduled commissioning date in December 2025, enhancing downstream oil processing capabilities.
The expansion involves an integrated refinery project costing approximately Rs 28,000 crore, with Oil India contributing a majority equity share of 69%.
Besides capacity augmentation, the project includes the development of a crude oil import terminal at Paradip port in Odisha and laying about 1,640 kilometers of pipeline to transport imported crude to Numaligarh.
Post-expansion, the refinery is expected to initially operate at around 50-60% capacity with full stabilization targeted by 2026-27.
Upgrading Refining Infrastructure And Enhancing Petrochemical Potential
The expansion not only amplifies crude processing volume but also boosts the refinery’s petrochemical intensity through upgrading and diversification of product slate. For instance, a 360 KTPA polypropylene plant foundation was laid recently to complement the refinery.
This shift supports India’s broader “Make in India” initiative and import substitution goals by enhancing domestic production capacity for refined petroleum products and petrochemicals.
Supply Chain And Logistical Strengthening
The addition of a crude oil import terminal at Paradip port ensures reliable inflow of imported crude grades, such as Arab Light and Arab Heavy, enabling feedstock flexibility.
Extensive pipeline infrastructure spanning 1,640 km from Paradip port to Numaligarh ensures secure and efficient transportation of crude, reducing dependency on land-based logistics and improving supply stability.
Economic Impact And Regional Development
The expansion acts as an economic catalyst for the region by:
Creating job opportunities both during construction and post-commissioning operational phases.
Enabling enhanced fuel supply to meet the growing energy demands of the Northeast states, supporting industrial, transportation, and household needs.
Stimulating ancillary industries including logistics, maintenance, and petrochemical manufacturing clusters.
Operational Performance And Future Growth Outlook
Numaligarh Refinery has demonstrated strong operational metrics with current refinery capacity utilization exceeding 100% on domestic crude feedstock. The expanded capacity project aligns with Oil India’s strategy to strengthen its downstream presence and diversify its energy portfolio.
Oil India’s upstream performance remains robust, with production growth in oil and gas reported in the 2024-25 fiscal year, including increased crude and natural gas outputs.
The commissioning of the expanded refinery with enhanced processing technology will improve yield quality and operational efficiencies, positioning NRL competitively in the evolving energy market.
Leadership Commentary On The Expansion
Oil India Chairman and Managing Director Ranjit Rath highlighted the strategic importance of this expansion: “Tripling the Numaligarh Refinery’s capacity will significantly boost our processing capabilities, meeting rising regional demand and supporting India’s energy security. The project also exemplifies collaboration with stakeholders and alignment with national priorities on energy transition.”
Conclusion: A Strategic Milestone In India’s Energy Landscape
The Numaligarh Refinery expansion represents a transformative leap forward for Oil India and the regional energy sector by increasing refining capacity, improving petrochemical production, and enhancing supply chain infrastructure. As the December 2025 commissioning approaches, this project will be closely watched for its impactful contribution to India’s energy self-reliance and industrial growth.
Sources: Economic Times, S&P Global Commodity Insights, Numaligarh Refinery Limited official statements, Reuters
