Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) have joined in the country’s longest LPG pipeline project being laid by state-owned Indian Oil Corp (IOC) to cater to cooking fuel needs of a fourth of the country’s population.
Representative Image
New Delhi:
IOC, which had in 2016 proposed laying of the pipeline, will hold the remaining 50 per cent stake. “IOC, BPCL, and HPCL have signed an agreement on June 3, 2019, for the formation of a joint venture company for implementation and subsequent operation of 2757-km long LPG pipeline from Kandla, Gujarat to Gorakhpur, UP,” the filings said.
LPG will be imported at Kandla and some sourced from oil refineries on the west coast will be moved up north via Ahmedabad (in Gujarat), Ujjain, Bhopal (in MP), Kanpur, Allahabad, Varanasi, and Lucknow (in UP). The pipeline will carry 6 mn tonnes pa of LPG.
This will be the longest LPG pipeline in the country. State-owned gas utility GAIL currently operates a 1,415-km line from Jamnagar in Gujarat to Loni near here. The line carries 2.5 million tonnes of LPG annually. GAIL also has a 623-km Vizag-Secunderabad pipeline. IOC also has a 274-km pipeline from Panipat in Haryana to Jalandhar. In pre-election project inauguration spree, Prime Minister Narendra Modi had on February 24, laid the foundation stone of the pipeline project which will be built over the next four years.
The companies said the pipeline will supply LPG to 22 bottling plants along the route.
“The proposed pipeline will source product from Kandla and other LPG import terminals on West Coast and two refineries at Koyali in Gujarat and Bina in Madhya Pradesh and would directly link 22 LPG bottling plants in Gujarat (3), Madhya Pradesh (6) and Uttar Pradesh (13) owned by the three promoter companies,” according to the filings.
In addition, the pipeline would feed LPG through road-bridging to 21 other LPG bottling plants in Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, and Uttar Pradesh. “The pipeline is expected to provide reliability in the supply chain of LPG. Besides economic benefit as compared to road transportation, movement of LPG by pipelines shall enhance safety as well,” it said.
BPCL and HPCL will take 25 per cent stake each in the Rs 9,000-cr project that involves laying of a pipeline from Kandla in Gujarat to Gorakhpur in Uttar Pradesh, the companies said in separate but almost identical regulatory filings.
IOC, which had in 2016 proposed laying of the pipeline, will hold the remaining 50 per cent stake. “IOC, BPCL, and HPCL have signed an agreement on June 3, 2019, for the formation of a joint venture company for implementation and subsequent operation of 2757-km long LPG pipeline from Kandla, Gujarat to Gorakhpur, UP,” the filings said.
LPG will be imported at Kandla and some sourced from oil refineries on the west coast will be moved up north via Ahmedabad (in Gujarat), Ujjain, Bhopal (in MP), Kanpur, Allahabad, Varanasi, and Lucknow (in UP). The pipeline will carry 6 mn tonnes pa of LPG.
This will be the longest LPG pipeline in the country. State-owned gas utility GAIL currently operates a 1,415-km line from Jamnagar in Gujarat to Loni near here. The line carries 2.5 million tonnes of LPG annually. GAIL also has a 623-km Vizag-Secunderabad pipeline. IOC also has a 274-km pipeline from Panipat in Haryana to Jalandhar. In pre-election project inauguration spree, Prime Minister Narendra Modi had on February 24, laid the foundation stone of the pipeline project which will be built over the next four years.
The companies said the pipeline will supply LPG to 22 bottling plants along the route.
“The proposed pipeline will source product from Kandla and other LPG import terminals on West Coast and two refineries at Koyali in Gujarat and Bina in Madhya Pradesh and would directly link 22 LPG bottling plants in Gujarat (3), Madhya Pradesh (6) and Uttar Pradesh (13) owned by the three promoter companies,” according to the filings.
In addition, the pipeline would feed LPG through road-bridging to 21 other LPG bottling plants in Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, and Uttar Pradesh. “The pipeline is expected to provide reliability in the supply chain of LPG. Besides economic benefit as compared to road transportation, movement of LPG by pipelines shall enhance safety as well,” it said.