Indian Oil Corp Ltd aims at ramping up capacity at its Kandla LPG import terminal from 600,000 tonnes per year to 2.5 million tonnes per annum (MTA) at a cost of Rs588 crore. The capacity is being increased to feed liquefied petroleum gas (LPG) into the proposed 2,757-km long Kandla-Gorakhpur LPG pipeline, billed as the longest LPG pipeline in the world.
To be laid at a total cost of Rs10,088 crore, the 8.25 MTA capacity pipeline would connect four big ports including Kandla, Mundra and Pipavav on Gujarat coast, four refineries and 22 LPG bottling plants in Gujarat, Madhya Pradesh and Uttar Pradesh.
“This would be the first such pipeline that would connect all the LPG import facilities at four different ports and a refinery in Gujarat,” said an IOC official.
The Kandla-Gorakhpur pipeline will be a joint venture of three oil marketing companies. IOC will have 50 per cent equity stake while BPCL and HPCL each will hold 25 per cent equity.
The pipeline will connect the two refineries including IOC’s 13.7 MTPA Koyali refinery and the 6 MTPA Bina refinery in Madhya Pradesh. The Bina refinery is a joint venture between BPCL and Oman Oil Company.
IOC sources said LPG from all these refineries is transported by road and rail tankers. Besides Kandla port, also to be connected to the pipeline will be Adani group owned and operated Mundra Port, A.P. Moller Maersk-backed Gujarat Pipavav Port and Gujarat Chemical Port at Dahej, which is jointly owned and operated by Gujarat Government and RIL.
The project is aimed at reducing LPG movement by trucks and rail from Kandla, Mundra, Pipavav and Dahej – both to the hinterland in North India and parts of Gujarat.