Underground LPG cavern almost ready

Vol 11, PW 5 (12 Jul 07) News in Brief

South Asia LPG, a 50:50 joint venture between state-owned Hindustan Petroleum and Total of France, is close to completing India’s first underground LPG storage facility.

Set up at Vizag on the east coast, this 60,000 tonnes capacity merchant facility is slated to be fully constructed between the last week of August and the first week of September. “We are still waiting for some crucial valves that have been shipped from Sweden and Norway,â€‌ says a company source.

Meanwhile, HPCL is in the market to contract the first cargo of LPG that will be used to fill up the cavern. “The first cargo is expected early October,â€‌ we hear.

HPCL plans to bring in only one tanker carrying 45,000 tonnes LPG. “This will fill up 85% of the cavern,â€‌ we hear.

“We can’t fill up the cavern as (the balance 15,000-tonne cargo) is uneconomical to ship.â€‌ SALPG says state-owned BPCL and IOC will also use the cavern in addition to HPCL.

“What will come in are industry parcels (of LPG),â€‌ we are told.