Adani Ports and Special Economic Zone (APSEZ) gained 1.12% to Rs 684.75 after the company signed an agreement with Indian Oil Corporation towards augmentation of its crude oil volumes at Mundra.
As part of the agreement, Indian Oil Corporation will expand its existing crude oil tank farm at Adani Ports’ Mundra, enabling APSEZ to handle and blend additional 10 mmtpa crude oil.
Indian Oil is currently operating a crude oil tank farm in an exclusive area in Adani’s Mundra Special Economic Zone, consisting of 12 tanks with a total capacity of 720,000 KL. The addition of 9 new tanks will augment the storage capacity to 1,260,000 KL, thus making Mundra Port by far the largest port based crude oil storage facility for IOCL.
Karan Adani, CEO and whole time director of APSEZ said, Mundra Port is a major economic gateway that serves the northern hinterland of India by providing multimodal connectivity. It gives us immense pride to strengthen our partnership further and support IOCL, which plays a vital role in ensuring the energy security of the nation. As IOCL’s trusted long-term partner, APSEZ is well equipped to handle the additional 10 MMTPA crude oil at our existing single buoy mooring (SBM) at Mundra.
IOCL, which accounts for nearly half of India’s petroleum products’ market share, has a refining capacity of 80.55 MMTPA and over 15,000 KM of pipeline network. Part of IOCL’s current crude oil requirement of 15 MMTPA for its Panipat Refinery is handled at the SBM at Mundra Port.
Shares of Indian Oil Corp were trading 3.25% higher at Rs 116 on BSE.
APSEZ, a part of the globally diversified Adani Group has evolved from a port company to an integrated transport utility. It is the largest port developer and operator in India with 6 strategically located ports and terminals on the west coast and 6 ports and terminals on the East coast of India.
Adani Ports and Special Economic Zone reported 6% decline in consolidated net profit to Rs 1,479 crore on a 1% rise in revenue to Rs 3,797 crore in Q3 FY22 over Q3 FY21.
Source: Business Standard