IOC tensely awaits GAIL pipeline verdict

Vol 18, PW 1 (28 Aug 14) News in Brief

IndianOil is hoping for a quick resolution to GAIL’s pipeline dispute with Tamil Nadu authorities as it prepares its own Rs900cr ($150m) LPG pipeline in the state.

IOC has begun applying for statutory clearances including environmental clearance to lay its 0.9m t/y capacity, 615-km pipeline from Ennore to Madurai, passing through Tiruchirappalli. Tamil Nadu chief minister J.

Jayalalithaa last year blocked GAIL’s Rs3400cr ($562m) Kochi to Bangalore and Mangalore pipeline because of protests by farmers. GAIL and Tamil Nadu are battling it out in the Supreme Court where the next hearing is in October.

“As soon as the GAIL matter is resolved we’ll begin issuing PMC and EPC tenders,” says IOC. “We might need new Right of User permission for up to 25% of the route.

” IOC wants to connect its Ennore LPG terminal to its bottling plants in Madurai, Chengalpattu, Pondicherry and Trichy, saving Rs100cr/year ($16.5m) on road transport costs.

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