Adani Ports is in news today. The stock, which had closed yesterday at Rs.688.30, opened higher today at Rs.699.90 and went on to an intraday high at Rs.709.50.
The company had some good news to share – it has signed an agreement with Indian Oil Corp Ltd (IOCL) towards augmentation of IOC’s crude oil volumes at Mundra. IOCL shall expand its existing Crude Oil Tank Farm at APSEZ’s Mundra Port, thus enabling it to handle and blend additional 10 mmtpa crude oil at Mundra. This will support IOCL’s expansion of its Panipat Refinery (Haryana).
IOCL is raising the capacity at its Panipat Refinery by 66% to 25 MMPTA to meet India’s rapidly growing energy requirements.
IOCL 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.
This shall be accompanied by augmentation of the MPPL pipeline capacity by IOCL to 17.5 mmtpa. IOCL Board had approved a capital expenditure of Rs.9000 crore for the crude oil tanks and MPPL augmentation in December 2021.