INTERVIEW: India's Numaligarh Refinery eyes wide range of crudes amid expansion

India's Numaligarh Refinery Ltd. will begin processing imported crude oil at its expanded units from the second half of fiscal year 2026-27 (April-March), following the completion of its capacity expansion from 3 million metric tons/year to 9 million mt/y, Oil India Chairman and Managing Director Ranjit Rath told Platts, part of S&P Global Energy, on Dec. 9.

NRL, a subsidiary of Oil India, currently uses mainly domestic crude as feedstock, with a capacity utilization rate of more than 100%, according to the company.

"While the design mix of the NRL refinery -- once the expansion is complete -- will be Arab Heavy and Arab Light crudes in a 70:30 ratio, NRL can process more than 100 crude assays," Rath said.

NRL finalized an agreement with state-run Bharat Petroleum Corp. Ltd., under which BPCL will annually import the bulk of the crude oil for the refinery, according to Rath. "BPCL will be the main importer for us, but we are flexible and will keep looking at all kinds of crudes that we can bring in and process economically," he said.

Saudi Aramco set the January OSP differential for its flagship Arab Light crude for Asia-bound cargoes at a premium of 60 cents/b to the Oman/Dubai average and the Arab Heavy OSP differential at a discount of $1.90/b to the Oman/Dubai average, according to a notice from the producer Dec. 4.

Pipeline expansion

The NRL expansion road map encompasses the construction of about 1,640 km of pipeline from Paradip Port to Numaligarh to transport imported crude oil. Additionally, NRL is expanding the capacity of the Numaligarh-Siliguri products pipeline from 1.72 million mt/y to 5.5 million mt/y. BPCL, Oil India and NRL have reached an agreement to extend the product pipeline from Siliguri to Mughal Sarai through Muzaffarpur, according to Rath.

"NRL, being a hinterland refinery, requires a strong supply chain," Rath said.

The government's decision to grant "Navratna" status to NRL is expected to accelerate further downstream expansion at the refinery in the future, Rath said.

The Navratna status is awarded to companies that meet certain performance and financial criteria, enabling them greater freedom in investment and expansion decisions. Navratna companies can invest up to Rupees 10 billion ($111.15 million), or 15% of their net worth, in a single project without requiring government approval.

Oil India supplies fuels to the entire eastern and northeastern region, as well as exports to neighboring countries, including Bangladesh via the India-Bangladesh Product Pipeline, and to Bhutan through its marketing partner, BPCL, according to Rath.

"NRL is undertaking petrochemical diversification through a 360,000 mt/y polypropylene plant, which will reduce import dependence and catalyze downstream industries in plastics, packaging, automotive components and consumer goods," Rath said. "In addition, NRL is now connected to the National Gas Grid, which further strengthens the company's ability to optimize its energy mix and power future gas-based projects."

Growth road map

As part of NRL's long-term growth strategy, the refinery has undertaken several initiatives to strengthen its core capabilities, including developing a wider logistics infrastructure, building high-capacity grid connectivity to ensure reliable power, increasing its renewable power footprint in its energy portfolio, and diversifying into specialty chemicals and active pharmaceutical ingredients, he said.

"The aim is to move up the value chain and tap new high-margin segments. These initiatives complement its core refining and marketing business and position NRL as a broader integrated energy and chemicals player," Rath said. He added that the availability of land, power and water near NRL's facilities enables the company to invest in new businesses and promote cluster-based industrial development around its refinery hub.

Rath said NRL has been actively advancing its energy diversification efforts. Its 50,000 mt/y bioethanol plant at Numaligarh, developed through a joint venture company called Assam Bio Refinery Private Ltd., is expected to help expand its clean fuels footprint, while establishing a sustainable bamboo value chain and generating new livelihood opportunities in rural areas.

"Building on this, NRL has articulated a clear net-zero road map, with 2038 as the target year, and is planning significant investments in green hydrogen, sustainable aviation fuel and other low-carbon and energy-efficiency projects," Rath said.

"Post-expansion, the company is targeting an annual revenue scale of over Rupees 750 billion ($8.34 billion), tripling from current levels, underpinned by higher refining capacity, integrated petrochemicals, secure crude logistics and a growing portfolio of green businesses," he added.