Adani withdraws Dhamra LPG pipeline proposal

Vol 19, PW 20 (16 Jun 16) Midstream & Downstream

Adani Energy has temporarily shelved its proposed 650-km LPG pipeline from Dhamra port in Orissa to Datapullia in West Bengal, hardly a month after the PNGRB invited comments on the proposal.

An Adani source says the proposal, withdrawn around mid-May, will be resubmitted to the PNGRB by the end of this month (June). Why was it withdrawn? Our source explains Adani's pipeline was designed to connect to IndianOil's proposed Paradip to Haldia LPG pipeline.

But Adani only recently found out that the IOC pipeline has not received PNGRB authorisation. "It seems IOC has not asked for PNGRB permission," says Adani.

"Must be an ego issue between IOC and the PNGRB. Eventually the pipeline has to be authorised.

Strange IOC hasn't applied for it yet." Also complicating matters is the lack of environment ministry clearance for Adani's proposed 1.6m t/y LPG import terminal at Dhamra. "We have environmental clearance for the port's master plan but need specific clearance for the terminal," he says.

In Gujarat meanwhile, the PNGRB has received comments from IOC, HPCL, BPCL and GAIL on a separate 90-km LPG pipeline proposed by Adani from Mundra port to Mithi Rohar that will connect to GAIL's established Jamnagar to Loni pipeline where capacity is being increased. Nobody has opposed this pipeline.