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Indian Oil Corp, BPCL, HPCL forms Joint Venture to build World’s longest LPG pipeline worth Rs 10,000 crore

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Indian Oil Corporation (IOC), India’s Largest fuel retailer, in a strategic association with Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) will jointly lay the world’s longest liquefied petroleum gas (LPG) pipeline worth Rs 10,000 crore, IOC said in a press release.

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According to the company’s official press release, the cross-country LPG pipeline stretching over 2,757 km, would kick start from Gujarat’s Kandla to Uttar Pradesh’s Gorakhpur and will connect 22 bottling plants owned by the three Indian Oil marketing companies (OMCs).

The proposed pipeline would be implemented by a joint venture (JV). IOC will have 50 per cent share in the JV with HPCL and BPCL having 25 per cent share each.

IOC is the single largest Indian entity and also been ranked Fortune Global 500 Company in India and has presence in the complete hydrocarbon value chain from downstream refining & marketing, pipeline transportation, Petrochemicals, E&P and Gas Marketing.

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Once it is built and construction gets finished, the single pipeline would be capable of transporting up to 8.25 million tonnes of LPG per year, amounting to about 25 per cent of India’s LPG demand.

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

The pipeline is been estimated to provide reliability in the supply chain of LPG. Besides economic benefit as compared to Road Transportation, movement of LPG by Pipelines shall improve more security and safety as well.

The Kandla-Gorakhpur LPG pipeline will supply LPG to 21 additional bottling plants in Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, and Uttar Pradesh through road-bridging.

It is predicted that the deficit between what its refineries produce and the ever increasing demand to touch around 10 million tonne per annum by 2031-32. LPG demand has grown 10.5 per cent this fiscal with just about half of the 8.4 million tonne consumed being locally produced.

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“Considering the deficit figures for LPG, it is essential to import LPG at the nearest port and then transport it to the bottling plants through the most economical modes,” IOC had said.

IOC is building additional import capacities at Paradip, Cochin and Kandla to meet the increasing requirements of imports.

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