Companies

Oil PSUs to lay world’s longest LPG pipeline between Kandla and Gorakpur

Our Bureau June 4 | Updated on June 04, 2019 Published on June 04, 2019

A representational image

IndianOil, BPCL, HPCL to form JV to lay 2,757-km line at a cost of ₹10,000 cr

IndianOil , Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) will be laying the world’s longest LPG pipeline, from Kandla (Gujarat) to Gorakhpur (UP). An IndianOil statement said the 2,757-km cross-country pipeline will connect three major States — Gujarat, Madhya Pradesh and Uttar Pradesh — to the western coast and reach LPG to 22 bottling plants (BPs) of the three oil marketing companies (OMCs).

A joint venture agreement to this effect was signed here on Monday evening.

The Kandla-Gorakhpur LPG pipeline is estimated to cost about ₹10,000 crore. It will be implemented through a joint venture company where IndianOil will hold 50 per cent and the other two OMCs will hold 25 per cent each.

“The pipeline will source LPG from three import terminals on the west coast and two refineries (at Koyali and Bina) and supply it to 22 bottling plants of the three OMCs connected en route — three in Gujarat, six in Madhya Pradesh and 13 in Uttar Pradesh,” an official statement said.

Road-bridging

In addition, the pipeline will supply LPG to 21 more bottling plants in Rajasthan, Gujarat, Madhya Pradesh, Maharashtra and Uttar Pradesh through road-bridging.

Once completed, the single pipeline can transport up to 8.25 million tonnes of LPG per year, which amounts to about 25 per cent of India’s LPG demand, the statement added.

 

Published on June 04, 2019

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