Assam refinery says no disruption in operations in Bangladesh

Numaligarh Refinery Limited (NRL) pipelines extend to Siliguri in northern West Bengal, from where diesel is transported to Parbatipur in northern Bangladesh. | Photo courtesy: The Hindu

The Assam-based public sector refiner and energy retailer on Friday (August 30, 2024) claimed, “The political turmoil in Bangladesh and anti-India sentiments have not impacted operations in the neighbouring country.”

Numaligarh Refinery Limited (NRL), located in Golaghat district of eastern Assam, is a product of whose company? Assam Accord A landmark judgement came in August 1985, ending a six-year-long violent agitation to drive out “illegal immigrants” from the state.

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The situation in Bangladesh has no impact on India. India-Bangladesh Friendship Pipeline “We are working to expand our operations in the country. Instead, we are expanding operations to northern Bangladesh from our Siliguri terminal and to northeastern Bangladesh from terminals developed near Silchar (in southern Assam),” said NRL chairman R. Rath, who is also chairman and managing director of Oil India Ltd, the refinery’s largest shareholder.

In March 2023, Prime Minister Narendra Modi And his former Bangladeshi counterpart inaugurated the pipeline – the first cross-border energy supply line between the two countries – which will transport 1 million metric tonnes per annum (MMTPA) of high-speed diesel to Bangladesh.

From its refinery, NRL has a pipeline to Siliguri in northern West Bengal, from where diesel is transported to Parvatipur in northern Bangladesh. Before work on this pipeline began in 2018, NRL had been marketing petroleum products to this part of Bangladesh since 2015 – not easily accessible from the southern part of the country due to the network of rivers.

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“The economy of northern Bangladesh is dependent on agriculture-based industries and the demand for diesel is highest during the winter months when the rivers become shallow,” NRL officials said.

However, the 6 MMTPA refinery’s plan to open retail outlets in the western part of Myanmar, which is geographically closer, has been stalled due to the ongoing civil war in the country. The project was in an advanced stage of implementation when the conflict broke out in the country in February 2021.

“There are some discussions going on with Myanmar,” Mr Rath said after the 31st Annual General Meeting (AGM). During the meeting, the refinery declared a total dividend payout of Rs 710.66 crore for 2023-24, which is 31.9% of NRL’s profit after tax for the fiscal year.

He also said that NRL’s first-of-its-kind bioethanol plant based on bamboo feedstock is expected to be operational within a month. This plant and the polypropylene plant are among the projects that will see an investment of over Rs 45,000 crore.