Work begins on India's longest new LPG pipeline

Vol 22, PW 15 (16 May 19) Midstream & Downstream

With a proposed length of 2757-km, a planned LPG pipeline from Kandla in Gujarat to Gorakhpur in Uttar Pradesh will be nearly twice the size of GAIL's 1415-km Jamnagar to Loni pipeline, making it the country's longest.

This report learns a consortium led by IndianOil (50%) with Bharat Petroleum (25%) and Hindustan Petroleum (25%) is planning a joint venture to execute the estimated Rs9000cr ($1.3bn) project. "The basic framework is in place," confirms a consortium source.

"A holding company will be formed soon." Our source adds a new name for the JV is yet to be finalised despite several suggestions by partners.

Under the terms of the PNGRB authorisation letter issued on December 31, 2018, the project must be completed within 36 months or by December 31, 2021. "Nothing is impossible," adds another consortium source.

"We are in the process of securing RoU and if we get it in time we will put contractors on the job. Who would not want to finish the job quickly and move out?" He adds the consortium is aware projects such as this are routinely delayed because of protests by local villagers.

For this reason it has asked the PNGRB to allow a five-year timeframe for completion. "I think the PNGRB is adopting a wait and watch approach," we hear.

"They have given us three years but may give us two more depending on progress at that time."