Kerala-TN Gas Project by Next Year - The New Indian Express

Kerala-TN Gas Project by Next Year

Published: 25th March 2014 06:00 AM

Last Updated: 25th March 2014 02:00 AM

Giving a major boost to the energy sectors in Kerala and Tamil Nadu, a 350-km pipeline between Kochi and Salem  to transport Liquefied Petroleum Gas (LPG) will be laid by the end of next year.

The gas pipeline linking the two cities will be built  at a cost of Rs 1, 000 crore.

The Petroleum and Natural Gas Regulatory Board (PNGRB) had on March 13 published the Grant of Authorisation for laying the pipeline to a joint consortium of BPCL and Indian Oil Corporation.

The land acquisition procedure will start soon and the construction is likely to start by the end of 2014.

The capacity of the pipeline will be 1.28 million metric tonnes per annum (MMTPA) and can be expanded up to 1.52MMTPA.

The project has been planned to connect the bottling plants of Bharat Petroleum Corporation Limited, IOC and Hindustan Petroleum Corporation Limited en route.

The PNGRB is entitled to lay, build, operate or expand city-wide or local petroleum products and natural gas distribution networks in the country.

The project primarily aimed at reducing the number of LPG tankers on Kerala roads.  An estimated hundred tanker lorries may move off the roads of the state once the project becomes a reality.

“The pipeline will function as a common carrier for all the three major oil companies. As the grant from PNGRB is received, land acquisition for the project is the immediate step.  A vast area between Kochi and Salem will be covered by the project and the shortage of LPG Cylinders in the region could be addressed effectively by this. We are hopeful that we could start laying the pipeline by the end of this year, and it will take 10-months to complete the project,” said BPCL sources familiar with the development.

The project is more important now as IOC is planning an integrated LPG import facility and terminal with a capacity of 0.6MMTPA at Puthuvype in Kochi and BPCL-Kochi Refinery is involved in the Integrated Refinery Expansion Project which is envisaged to increase the refining capacity from the present 9.5 to 15.5 MMTPA.

Once these projects are completed the availability of LPG in the state will increase considerably.

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