Numaligarh Refinery to Commission 120,000 bpd Crude Unit by December, Full Ramp-Up Expected by Q2 FY27

Numaligarh Refinery Ltd (NRL), a subsidiary of Oil India Ltd, is set to commission a new 120,000 barrels-per-day crude processing unit at its Assam facility by December 2025. The unit is part of the ₹28,026 crore Numaligarh Refinery Expansion Project (NREP), which aims to triple the refinery’s capacity from 3 MMTPA to 9 MMTPA. The facility is expected to reach full operational capacity of 180,000 bpd between July and September 2026.

 

Key Highlights:

 

The new unit will initially process locally sourced crude, with imported crude integration planned via a 1,640 km pipeline from Paradip Port in Odisha.

 

The expansion includes advanced units such as Diesel Hydrotreater, Sulphur Recovery, PetroFCC, and Hydrogen Generation, with global licensors like UOP, Axens, and Lummus onboard.

 

The refinery’s enhanced output will cater to domestic demand and support exports to Bangladesh and other neighboring countries.

 

Strategic Context:

 

The project aligns with India’s Hydrocarbon Vision 2030, aiming to boost fuel access and infrastructure in the Northeast.

 

NRL’s expansion is expected to generate significant employment, stimulate ancillary industries, and improve regional energy security.

 

The refinery will also support green initiatives, including a 2G bio-refinery using bamboo biomass and a polypropylene unit awaiting environmental clearance.

 

Market Outlook:

 

Analysts anticipate improved refining margins and strategic leverage for Oil India in the regional energy market.

 

The full ramp-up to 180,000 bpd will position NRL as the largest refinery in Northeast India, enhancing its role in India’s energy supply chain.

 

Sources: Hydrocarbon Processing, Financial Express, Indian Chemical News, PolymerUpdate, Numaligarh Refinery Corporate Filings