Financial Daily from THE HINDU group of publications
Wednesday, Dec 10, 2003
Financial Daily from THE HINDU group of publications Wednesday, Dec 10, 2003 |
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Industry & Economy
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Petroleum Logistics - Infrastructure Hindustan Petro keen to complete pipeline project in 3 years Our Bureau
Mumbai , Dec. 9 HINDUSTAN Petroleum Corporation Ltd (HPCL) hopes to complete its proposed 1,008-km Mundhra-Delhi product pipeline within the next three years. The company has offered 25 per cent of the pipeline capacity on a common carrier basis; expressions of interest (EOI) for which were called on December 1, 2003, by the Ministry of Petroleum and Natural Gas. The companies interested in sharing the carrier's capacity will have to sign a "take-or-pay" agreement with HPCL as per the Ministry notice. The Rs 1,367-crore pipeline will begin at Mundhra in Gujarat, where HPCL is setting up an import terminal for crude and petroleum products. However, the origin point could be revised depending on the users' requirements. "The pipeline will mainly carry light oils such as diesel, petrol and kerosene and may be even naphtha," Mr N.K. Puri, Director (Marketing), told Business Line. He said the pipeline would not only transport products imported at Mundhra, it would also carry products from HPCL's Trombay refinery. The project is scheduled for completion within 30 months from "zero date" once it obtains the necessary Union Government approvals. Companies have been asked to submit EOI within three months. HPCL plans to fund the project on a 1:1 debt-equity ratio, but financing will be worked out according to the interest expressed by other companies. In the notice inviting EoIs from other companies, the Ministry has laid down that interested companies will have to have access to terminals at the pipeline origin point and at tap-off points where the product will be delivered. The proposed pipeline will have tap-off points at Palanpur, Ajmer, Rewari and Delhi, a company official said.
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