Strong pitch by HPCL to lay PNGRB pipeline
Hindustan Petroleum has made a strong pitch to the PNGRB for the right to lay a proposed 275-km gas pipeline from Kakinada to Srikakulam.
"We request the PNGRB to nominate HPCL for laying this pipeline or to authorise HPCL through the bidding route," requests HPCL chief general manager pipeline projects Vishwanath Vanchi on January 24 (2024). Vanchi wrote after the PNGRB invited comments on January 8 (2024) on its proposal to develop the pipeline, originally awarded to the Andhra Pradesh Gas Distribution Corporation (APGDC) but scrapped on December 1 (2023) after APGDC failed to advance the estimated Rs860cr ($103m) project.
Other companies that replied to the PNGRB were GAIL, IndianOil, Chennai-based Indian Molasses Company and Pipeline Infrastructure. All of their comments were posted online on March 15 (2024).
Vanchi forcefully argues that HPCL's 8.3m t/y Vizag refinery would be one of the pipeline's anchor customers. "HPCL has made significant investments to achieve clean energy targets at its Vizag refinery," he stresses.
"(The refinery) has been made gas-ready and is awaiting connectivity to the gas grid through the pipeline." He adds that HPCL has an exemplary track record of completing cross-country pipelines, "operating 3003-km of PNGRB-authorised petroleum and LPG pipelines."
He adds: "With 38 years of experience laying and operating cross-country pipelines, HPCL is best positioned to complete this project." GAIL, too, is pressing for PNGRB permission to lay a similar-routed pipeline.
On February 5 (2024), chief general manager marketing Jitendra Pathak wrote to the PNGRB acknowledging that the proposed pipeline is crucial to bring gas from Kakinada to the north. Pathak, however, warns that the potential gas demand is not more than 4m cm/d and not the PNGRB's 20m cm/d estimate.
Pathak also reminds the PNGRB of a GAIL letter on January 18 (2024) for the right to lay a pipeline from Srikakulam to Vizag. "This would ensure capacity utilisation of Srikakulam to Angul and connect demand centres in Visakhapatnam," he says.
"Hence, the PNGRB is requested to kindly consider GAIL's proposal and review the proposed pipeline bidding."