The Hindu Business Line : IOC shelves plan for LPG pipeline network

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Kolkata Feb. 21 IndianOil has shelved its plan to set up an LPG pipeline network connecting its major refineries owing to lack of throughput. The project may be revived later, following completion of the Paradip refinery project in Orissa.

Plans are, however afoot to connect Kolkata and Hyderabad airports through ATF pipelines. IOC has already decided to commission ATF pipelines to Chennai and Bangalore airports.

A senior company official told Business Line that following its decision to set up the first ever LPG pipeline from Panipat refinery in Uttar Pradesh to Jalandhar in Punjab, IOC had commissioned a study to explore the possibility of setting up an LPG pipeline across the country to reduce freight costs.

According to the company, the 275-km Panipat-Jalandhar pipeline will reduce freight cost by 30-40 per cent.

Studies, however, point out that the existing throughputs at major refineries like Koyali, Haldia or Chennai (CPCL) would not be sufficient to make the pipeline network commercially viable.

"We have dropped plans for any further expansion of the LPG pipeline network, and the issue may be taken up after commissioning of the 15-million tonne Paradip refinery," the official said.

ATF pipeline

Meanwhile, the fast increasing air traffic through Netaji Subhas Chandra Bose International Airport in Kolkata has created enough ground for IOC to connect the airport through an ATF pipeline from its nearest depot at Budge Budge.

According to sources, the company is currently negotiating with State authorities for right of way. The company is also considering setting up an ATF pipeline to the upcoming international airport near Hyderabad.

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