Two MRPL field operators die after suspected tank gas leak, probe ordered

Mangalore, Karnataka | July 12, 2025 — In a tragic incident at the Mangalore Refinery and Petrochemicals Limited (MRPL), two field operators lost their lives following a suspected gas leak from a storage tank inside the refinery’s premises. The incident occurred late Friday night, prompting immediate emergency response and triggering a high-level inquiry into the cause and protocol adherence.

Incident Overview

The deceased have been identified as senior field operators who were on a routine inspection assignment in one of the tank farms at the MRPL facility. Initial reports suggest that the duo may have been exposed to toxic vapors believed to have leaked from one of the hydrocarbon storage tanks.

The workers were found unconscious by their colleagues and rushed to a nearby hospital, where they were declared dead on arrival. Preliminary investigations hint at a possible lapse in the detection and control of volatile gases.

“We are deeply saddened by the loss of our colleagues. The company is cooperating with local authorities and has initiated an internal investigation,” said a spokesperson from MRPL.

Authorities Order Probe

The Karnataka state government has ordered an immediate probe into the incident. A joint committee comprising officials from the Directorate of Factories, Boilers, Industrial Safety & Health (DISH), and the Petroleum and Explosives Safety Organization (PESO) has been formed to ascertain the root cause.

"We will leave no stone unturned to determine if safety protocols were violated. If negligence is found, strict action will be taken,” stated Karnataka Labour Minister Santosh Lad.

Additionally, the Ministry of Petroleum and Natural Gas has requested a detailed report from MRPL within 72 hours.

Safety Concerns Surface Again

This incident adds to a growing list of industrial mishaps in India's refining and petrochemical sector, where questions around safety training, maintenance standards, and emergency response capabilities persist.

Industrial safety expert Dr. Raghavendra Shenoy noted, "Even in highly automated setups like MRPL, human safety depends on adherence to standard operating procedures. This tragic loss emphasizes the need for continuous vigilance and rigorous audits."

In 2023, MRPL had initiated a multi-crore revamp of its safety infrastructure, including the installation of AI-based leak detection systems. Whether those systems were operational or failed during this particular incident remains under investigation.

Market Reaction and MRPL Stock Movement

MRPL’s stock price on the NSE opened lower on Saturday in special trading, dropping by 2.3% to ₹147.90 as investors reacted to the news. Market analysts attributed the decline to uncertainty regarding regulatory fallout and potential shutdowns for investigation or maintenance checks.

"While the financial impact of the incident remains minimal at this stage, investor sentiment has been dented due to fears of increased regulatory scrutiny and potential disruptions in operations," said Rahul Shah, Head of Research at Motilal Oswal.

However, Shah added, "MRPL remains fundamentally strong with steady refining margins and robust throughput volumes. Unless this event escalates into broader compliance or legal trouble, the downside could be temporary."

Investor Outlook

MRPL's operational scale and strategic importance as a subsidiary of ONGC offer it long-term stability. Yet, the refinery’s recurring safety incidents—this being the second major one in three years—could raise concerns among ESG (Environmental, Social, Governance) focused investors.

Brokerage firms may revise their near-term ratings, especially if the ongoing probe leads to significant operational curtailments or penalties.

"Investors should wait for clarity post-investigation before making fresh entries," advised Divya Mehta, Energy Sector Analyst at Axis Securities. "We are keeping a close watch on potential regulatory actions and their implications on Q2 results."

The death of two experienced field operators at MRPL is a sobering reminder of the critical importance of industrial safety in high-risk sectors. While investigations are ongoing, the incident has already sparked wider concerns about the effectiveness of current safeguards in place across the refining sector.

As the company grapples with internal reviews and external probes, both industry stakeholders and investors will be watching closely for lessons learned and systemic reforms implemented in its aftermath.