MRPL partners ISPRL for cost-effective crude oil storage facility

New Delhi: Mangalore Refinery and Petrochemicals Ltd (MRPL) has entered right into a strategic deal to retailer its crude oil within the caverns of the Indian Strategic Petroleum Reserves Ltd (ISPRL).

“This partnership allows MRPL to leverage storage capability from ISPRL’s caverns, marking a major milestone for each the organizations,” MRPL stated in a press release on Tuesday.

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The settlement was signed on Tuesday by B. Sudharshan, government director (refinery) MRPL, and Atul Gupta, deputy chief government officer, ISPRL.

ISPRL, a fully-owned subsidiary of Oil Trade Improvement Board below the ministry of petroleum and pure fuel, is accountable for sustaining the nation’s strategic petroleum reserves by storing them in underground rock caverns.

Mundkur Shyamprasad Kamath, managing director of MRPL, stated that the settlement would allow the corporate to boost its crude oil storage capability, thereby mitigating dangers related to the volatility of worldwide crude oil markets.

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“This settlement will not be merely a contract however a shared dedication to excellence and a promising future,” he stated.

MRPL is a subsidiary of state-run Oil and Pure Fuel Company Ltd.

Reduces prices

The corporate stated that leasing ISPRL’s caverns eliminates the necessity for establishing and sustaining standalone storage amenities, thereby lowering prices.

Additional, the proximity of ISPRL caverns to MRPL’s refinery and the coast minimizes transportation prices and transit time.

“Storing numerous grades of crude oil as per MRPL’s necessities offers operational adaptability,” it stated.

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With this strategic benefit, MRPL is poised to leverage the added storage capability to acquire economically viable and complicated crude grades, boosting its backside line whereas making certain power resilience, in accordance with the assertion.

ISPRL, the custodian of caverns storing important sovereign crude oil reserves, additionally operates amenities for every other entity accredited by the Centre and leases out storage capacities. It additionally coordinates for releasing and replenishing strategic crude oil inventory throughout provide disruptions via an empowered committee of the Authorities of India.

Within the first section, ISPRL created underground rock caverns to retailer 5.33 million tonnes of crude throughout three areas: Visakhapatnam, Andhra Pradesh (1.33 million tonnes), and Mangalore (1.5 million tonnes) and Padur (2.5 million tonnes) in Karnataka.

Shares of MRPL on the BSE closed 0.5% larger at ₹144.50 apiece on Tuesday.