IOC May Use 50% of Long­est LPG Pipe­line’s Ca­pac­ity

The Economic Times - - Economy: Macro, Micro & More - San­jeev.Choud­hary@ times­

New Delhi: State-run In­dian Oil Cor­po­ra­tion plans to use nearly half the ca­pac­ity of the coun­try’s long­est LPG pipe­line. The balance ca­pac­ity of the pro­posed pipe­line is to be used by the pub­lic sec­tor cor­po­ra­tions Hin­dus­tan Petroleum and Bharat Petroleum, and Reliance In­dus­tries. Petroleum & Nat­u­ral Gas Reg­u­la­tory Board (PNGRB), the down­stream reg­u­la­tor, has in­vited bids from in­ter­ested par­ties by June 6 to lay a 2,650-km long liq­ue­fied petroleum gas pipe­line from Kandla in Gu­jarat to Go­rakh­pur in Ut­tar Pradesh, with ad­di­tional feeder lines of Pi­pavav-Ahmed­abad and Da­hej-Koy­ali. The pipe­line will have a ca­pac­ity of 6 mil­lion met­ric tonnes per an­num, in­clud­ing com­mon car­rier fa­cil­ity for any third party on open ac­cess ba­sis. The main line will be about 2,000 km long. IOC had writ­ten to the PNGRB about four months ago, say­ing it was in­ter­ested in build­ing such a pipe­line be­tween Gu­jarat and Ut­tar Pradesh to cater to ris­ing de­mand for cook­ing gas. Fol­low­ing this, the reg­u­la­tor has to hold con­sul­ta­tions with all stake­hold­ers and based on their feed­back, it has to firm up the spec­i­fi­ca­tions for the pro­posed pipe­line and then open it to for­mal bids.

GAIL said the pro­posed pipe­line would hurt the com­pany’s un­der­utilised LPG pipe­line that partly runs on the same route.

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