Three year plan for 'strategic' LPG storage facilities

Vol 7, PW 7 (18 Jun 03) Midstream & Downstream

DONT EXPECT the additional 'strategic' LPG storage facilities to come up immediately.

Panel representatives present a three-stage timetable of construction over the next three years. Most of the new tanks are planned for high consumption areas in northern and southern India where demand will rise most sharply.

Close to 40% of the new capacity will be for northern India while 35% of new capacity will be for southern India with the balance split between eastern and western India. See below:Region-wise break-up of the proposed 'strategic' LPG storage capacity Region Storage capacity required Proposed storage capacity Phase-I (2005-06) Phase-II (2006-07) Phase-III (2007-08) Total North 210,000 tonnes 105,000 tonnes 50,000 tonnes 55,000 tonnes 210,000 tonnes East 58,000 tonnes 35,000 tonnes Nil 25,000 tonnes 60,000 tonnes West 75,000 tonnes 40,000 tonnes 35,000 tonnes Nil 75,000 tonnes South 188,000 tonnes 70,000 tonnes 80,000 tonnes 35,000 tonnes 185,000 tonnes Total 531,000 tonnes 250,000 tonnes 165,000 tonnes 115,000 tonnes 530,000 tonnes Days cover 38 days 41 days 45 days Panel representatives predict western India will continue to remain surplus in LPG and that's why they have laid out limited plans for additional storage capacity.

They argue that the northern region's shortfall will be met by GAIL's Jamnagar to Loni LPG pipeline and that the southern and eastern regions will remain largely dependent on coastal ship movements and imports. We learn the panel's suggestions are based on industry demand projections for 2006-07 - the last year of the 10th Five Year Plan.

Also considered were, "the supply-demand scenario during the 10th Plan period, availability of LPG in various regions, existing import facilities, time required for bringing in imported LPG and impact of natural gas substitution." Finally the panel predicts that it will take, "between 24 and 36 months from the date of approval or the date of procurement of land, whichever is later," to get the first new tanks operational.