IndianOil signs pact with Nagarjuna Oil Corp
New Delhi   23-Apr-2012

Nagarjuna Oil Corporation (NOCL) has secured a marketing tie-up with PSU major IndianOil to sell its petroleum products. NOCL’s six million tons per annum refinery at Cuddalore in Tamil Nadu is expected to be commissioned by early next year.

The marketing agreement, which was signed by MR Karandikar, general manager – supplies, IndianOil K. Murali, vice president (marketing), NOCL, at Cuddalore on Friday, is expected to pave the way for addressing the current deficit in supplies of petrol, diesel and LPG in Tamil Nadu besides meeting future growth in consumption.

Presently, the deficit of around three million tonnes in the state is currently being met through supplies from the refineries located on the Indian west coast. The NOCL refinery at Cuddalore will have capacity to produce around 2.7 million tonnes of diesel, 0.8 million tonnes of petrol, and 0.7 million tonnes of LPG and these production levels are expected to be sufficient to bridge the deficit. NOCL refinery is also capable of producing BS IV grades of petrol and diesel, which is mandatory in Chennai and Puducherry markets, according to a company statement.

With a 50 per cent market share in retail marketing of petrol and diesel in Tamil Nadu and Puducherry, IndianOil has over 1750 retail outlets selling petrol, diesel & lubes in the two regions. About 75 per cent of petrol product requirements in Tamil Nadu and Puducherry is met by the 10.5 million tonne refinery of Chennai Petroleum Corporation, a subsidiary of IndianOil.