Oil India Completes Pipeline Upgrade And Signs 15-Year Gas Deal With NE-EPCO

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Oil India Has Achieved Mechanical Completion Of Its Numaligarh–Siliguri Product Pipeline, Boosting Capacity To 5.5 MMTPA. Simultaneously, It Has Signed A 15-Year Gas Supply Agreement With NE-EPCO For 1.4 MMSCMD, Marking A Strategic Step Toward Strengthening Northeast India’s Energy Infrastructure.

Oil India Limited (OIL) has announced the mechanical completion of its Numaligarh–Siliguri Product Pipeline (NSPL) upgradation project. Completed on October 12, 2025, the pipeline’s capacity has been expanded from 1.77 Million Metric Tonnes Per Annum (MMTPA) to 5.5 MMTPA. This upgrade is part of the broader Numaligarh Refinery Expansion Project and is expected to significantly improve the transportation of petroleum products across Northeast India.

The enhanced pipeline will support smoother and more efficient supply chains, reduce logistical bottlenecks, and contribute to national energy security goals. The project also aligns with India’s push for infrastructure modernization in strategic regions.

Long-term gas supply agreement signed

In a parallel development, Oil India has inked a 15-year gas sale agreement with North Eastern Electric Power Corporation (NE-EPCO). Under the deal, OIL will supply 1.4 Million Metric Standard Cubic Meters per Day (MMSCMD) of natural gas to NE-EPCO’s power generation facilities.

The agreement is designed to ensure consistent fuel supply for electricity generation in the Northeast, supporting regional development and energy reliability. It also reflects Oil India’s commitment to long-term partnerships and sustainable energy distribution.

Key highlights:

Numaligarh–Siliguri pipeline capacity upgraded to 5.5 MMTPA
Mechanical completion achieved on October 12, 2025
15-year gas supply agreement signed with NE-EPCO
Daily supply commitment of 1.4 MMSCMD of natural gas
Supports Northeast India’s energy infrastructure and power generation

Strategic implications and outlook

These developments mark a significant milestone in Oil India’s infrastructure and commercial strategy. The pipeline upgrade and gas agreement are expected to enhance operational efficiency, reduce carbon footprint through cleaner fuel usage, and stimulate economic growth in the region.

Industry analysts view the dual announcements as a signal of Oil India’s expanding role in India’s energy transition, particularly in underserved regions. The company’s shares (OILI.NS) may benefit from improved investor sentiment and long-term revenue visibility.

Sources: Business Upturn, ScanX News, Oil India Limited

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