2G Refinery at Numaligarh to Boost Employment for Local Farmers: Petroleum Minister Hardeep S Puri

New Delhi, December 5, 2023: In a significant development for the northeastern region, Petroleum & Natural Gas Minister Shri Hardeep Singh Puri highlighted the substantial contribution of Assam to the country’s crude oil and natural gas production. Responding to a Starred Question raised by Rajya Sabha M.P. Shri Pabitra Margherita, Shri Puri acknowledged Assam’s role, contributing approximately 14% of total crude oil production and 10% of total natural gas production in the nation.

He informed the parliament that the state’s historical significance in the petroleum sector dates back to 1901 when Asia’s first refinery was established in Digboi, Assam, following the commercial production of crude oil in 1889.

During the past four financial years (2019-20 to 2022-23), Shri Puri disclosed that the total royalty paid to the state government amounted to Rs. 9291 Crore for crude oil and Rs. 851 crore for gas production.

The minister shed light on major projects worth Rs. 44000 crore in the Northeast, including the expansion of the Numaligarh Refinery, North East Gas Grid, Paradip-Numaligarh crude oil pipeline, and NRL Bio refinery. Notably, the 2G refinery at Numaligarh, with a capacity of 185 klpd, will focus on producing ethanol from bamboo, promising substantial employment opportunities for local farmers.

In addition to emphasizing the development projects, Shri Puri stated that the entire North Eastern States are being integrated into the City Gas Distribution network, aiming to provide cost-effective and clean cooking and vehicle fuel options for the masses.

Discussing the government’s strategic measures, the minister highlighted a 99% reduction in “No Go” areas in the Exclusive Economic Zone, freeing up approximately 1 million square kilometers for exploration and production activities. The government is infusing a capital expenditure of around Rs. 61000 crore to enhance production in the coming years.

Shri Puri also showcased the success of achieving ethanol blending targets ahead of schedule (from 1.53% in 2014 to 12% in 2023) and mentioned the country’s progression towards flex-fuel engine vehicles. E20 (20% ethanol blended fuel) is already available at more than 6000 retail outlets and is expected to be widespread throughout the country by 2025.

The minister concluded by mentioning the government’s initiatives to promote alternative sources such as Compressed Bio-Gas (CBG), Green Hydrogen, and Electric Vehicles (EVs). Furthermore, he highlighted the recent inauguration of the Sui-Ka-Pha Multi Speciality Hospital in Sivasagar, Assam, costing Rs. 483 crore and funded by ONGC under its Corporate Social Responsibility (CSR) activities. The hospital is set to serve the healthcare needs of Upper Assam and neighboring districts.