HPCL gas pipelines
Hindustan Petroleum directors approved an investment of Rs452cr ($89.8m) for an 11% stake in three proposed gas pipelines at their last board meeting on March 12.
Others in the consortium to lay the three cross-country pipelines are Gujarat State Petronet (promoter with 52%), IndianOil (26%) and Bharat Petroleum (11%). One of the pipelines will stretch 1611-km from the Deen Dayal gasfield landfall point at Mallavaram in Andhra Pradesh to Bhilwara in Rajasthan at an estimated cost of Rs5214cr ($1bn); the second is a 1688-km pipeline from Mehsana in Gujarat to Bhatinda in Punjab; and the third is a 512-km pipeline from Bhatinda to Srinagar, passing through Jammu: both estimated to cost Rs5050cr ($977m).
Each partner must commit to stick with the projects for at least five years before work begins. HPCL believes it can convince 440 factories along the proposed pipeline routes to begin using gas instead of 300,000 t/y of naphtha and diesel they’re currently consuming now.
