Rajasthan-Gujarat Oil pipeline completed

Cairn India, the firm that gave the nation its largest on-land oil discovery, has completed a pipeline from the Thar desserts of Rajasthan to the Gujarat coast for transporting crude oil. "The (590-km) pipeline from the Mangala (oil fields) in Rajasthan to Salaya in Gujarat is now complete," Cairn Energy, the parent firm of the Bombay Stock Exchange-listed Cairn India, said on Thursday. Cairn, which currently trucks crude oil produced from the the Barmer district in Rajasthan to refiners like Reliance Industries and Mangalore Refinery, will be able to sell oil to Indian Oil and Essar Oil once the pipeline becomes operational. The pipeline will help ramp up production from Mangala field to 125,000 barrels per day in second half of 2010 from 60,000 bpd currently, it said, adding that spur lines to refineries have been completed.
"Crude oil continues to be evacuated via road trucks to the Gujarat coast for onward transport to MRPL and Reliance refineries, using heated crude oil tankers," it said. Cairn said Processing Trains One and Two at the Mangala Processing Terminal (MPT) are operational and Train Three is due for completion by the end of second quarter of 2010. "The MPT is designed to process crude from the Mangala, Bhagyam and Aishwariya (MBA) fields and, when complete, will have initial capacity to handle 205,000 bopd of crude with scope for further expansion," the statement said. Four MPT Processing Trains will enable Cairn to produce and process the current approved peak plateau production of 175,000 bpd.

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