21-05-2012

Essar Oil - L&T sign MoU for bitumen supply

Essar Oil, amongst India’s top private sector refiners, and Larsen & Toubro, amongst India’s top engineering and construction companies, have signed a Memorandum of Understanding (MoU) for supplies of high quality bitumen for key infrastructure projects in Gujarat undertaken by the engineering giant. The initial supply agreement is for a quantity of 15,000 metric tonnes over the course of the project and is likely to be extended to other projects in and around the state.

Essar Oil will provide supplies for the Kandla – Mundra Road Project (KMRP) and the Samakhaiyali – Gandhidham Road Project (SGRP), both in the state of Gujarat from its state-of-the-art refinery in Vadinar. This cooperation will soon be extended to projects like the Kishangarh – Udaipur – Ahmedabad Road Project, among others.

Essar Oil has existing relationship with L&T under which it supplied about 60,000 metric tonnes of high quality bitumen over the last 18 months for L&T’s various road projects. The new MoA is over and above that quantity. Essar Oil will ensure availability of quality product for the projects and the relationship with L&T will open up avenues for sales of its refinery product.

“We are happy to be associated with L&T and in essence be a part of the infrastructure development of the country. Essar Oil is fully geared to meet the supply for increased demand of high quality bitumen for road construction,” said Mr. S. Thangapandian, CEO – Marketing, Essar Oil.

Larsen & Toubro is one of the pioneers of infrastructure development in India and currently has more than 15 road projects under various stages of construction / operations, across states like Gujarat, Maharashtra, Tamil Nadu, Karnataka, Haryana, Andhra Pradesh and Rajasthan.

Essar Oil has the capacity to produce over 700,000 metric tons of bitumen per annum.