Guwahati, May 18: Numaligarh Refinery Limited( NRL) will tie up with a Myanmar-based company to enter the market in the neighbouring country.
Official sources said a contract between NRL and Iceberg Capital of Myanmar is likely to be signed for identifying potential customers and for high-speed diesel export.
A procedure note for export to Myanmar was signed on Tuesday by NRL general manager (marketing and business development) B. Ekka and chief executive officer, Iceberg Capital, Anshuman Ghai, at the NRL office here. NRL managing director P. Padmanabhan and officials from both sides were present.
NRL said the export of high-speed diesel to Myanmar by lorry is a win-win situation for both countries owing to the geographical proximity of the neighbouring nation and being connected by NH 39 (or Asian Highway 1).
It is proposing to export 500 metric tonnes of diesel on a trial basis for three months using services of Iceberg Capital, which is a market entry, research, advisory and management consulting firm providing strategic market insights and management expertise and has its head office at Yangon.
The Hydrocarbon Vision Northeast 2030 says the total demand for all petroleum products in the region is around 3.2 million metric tonnes per annum.
The proposed expansion along with existing refinery capacity will ensure the region will have more capacity than demand.
India, a net exporter of petroleum products, can utilise the excess capacity to service demand in neighbouring nations like Bangladesh, Myanmar, Sri Lanka and Bhutan, it said.
NRL has already entered the Bangladesh market after Prime Minister Narendra Modi and his counterpart Sheikh Hasina flagged off a goodwill rake on April 8 carrying 2,284 metric tonnes of high-speed diesel from the company’s Siliguri marketing terminal to the Parbatipur storage depot of the Bangladesh Petroleum Corporation.
The company also exported paraffin wax to Myanmar.
NRL has also donated nine cartons of handmade candles to the trustees of the Shwendagon Pagoda in Myanmar. “The candles are a product of cottage industries in Meghalaya and adjoining areas of Numaligarh. The refinery has been providing assistance in imparting training on candle-making to unemployed youths and women in several northeastern states as part of its corporate social responsibility focus on Skill India,” an official said.