IOC looks to use To­tal’s Bangladesh LPG ter­mi­nal, may open of­fice there

Resource Digest - - CONTENT -

To ex­pand its busi­ness in Bangladesh, In­dian Oil Corp (IOC) is look­ing to utilise global en­ergy gi­ant To­tal’s liq­ue­fied petroleum gas (LPG) ter­mi­nal in Chit­tagong to sup­ply cook­ing gas to the North-east­ern part of In­dia. The oil mar­keter may also set up an of­fice in Bangladesh. Sep­a­rately, IOC is also plan­ning to set up an of­fice at Myan­mar to over­see op­er­a­tions there. “We are look­ing at the pos­si­bil­ity of feed­ing LPG to the North-east through Bangladesh. In Chit­tagong, there is a ter­mi­nal of To­tal and we plan to utilise this,” said IOC Chair­man San­jiv Singh, adding that Bangladesh too would ben­e­fit as IOC would be able to pro­vide packed LPG in the coun­try.

In April 2016, Bangladesh Petroleum Cor­po­ra­tion and IOC had signed a mem­o­ran­dum of un­der­stand­ing (MOU) in Dhaka to jointly build an LPG ter­mi­nal which would serve both Bangladesh and the east­ern and north-east­ern parts of In­dia. Singh said that IOC would also go for its own fa­cil­ity but To­tal’s is an ex­ist­ing fa­cil­ity and op­er­a­tions can be com­menced quickly. The time line for the ter­mi­nal to start op­er­a­tions was three to four years from the time of sign­ing of the MOU.

At present LPG is sup­plied to the North-east­ern states through As­sam. If LPG is un­loaded at Chit­tagong, tankers can move across Bangladesh through land to Tripura, re­duc­ing the dis­tance and time. Ioin­di­anoil had once trans­ported LPG through trucks across Bangladesh from As­sam to Tripura. Singh added that the com­pany is also open to lay­ing a pipe­line and that it is talk­ing to the Bangladesh au­thor­i­ties.

In Au­gust, petroleum min­is­ter Dhar­men­dra Prad­han had said that In­dia would set up an en­ergy co­op­er­a­tion network with the neigh­bour­ing coun­tries of Myan­mar, Bangladesh and Nepal. Un­der the project, pipe­lines would be laid to trans­port diesel, LPG and other petroleum prod­ucts. In ad­di­tion, as per the gov­ern­ment’s Hy­dro­car­bon Vi­sion 2030, 6,900 km pipe­lines are planned to be laid to con­nect Myan­mar, Bangladesh, most of the North-east­ern states and West Ben­gal’s Silig­uri and Dur­ga­pur.

Singh in­formed that phys­i­cal work on the pro­posed prod­uct pipe­line be­tween Moti­hari, In­dia, and Am­lekhganj, Nepal, would com­mence soon. “The work should start in two months. It will pro­vide re­lief not only to Nepal but also to In­dia as rather than road trans­port, we will have a re­li­able way of feed­ing Nepal. Within In­dia, IOC is build­ing the Pardip-hal­dia-dur­ga­pur LPG pipe­line which will be ex­tended to Muzaf­farpur and Go­rakh­pur. In ad­di­tion, it is lay­ing gas pipe­lines from Dhamra to Paradip and Dhamra to Hal­dia, apart from lay­ing a prod­uct pipe­line from Paradip to Hy­der­abad.

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