IOCL, BPCL and HPCL to together build the world’s longest LPG pipeline

Indian Oil Corporation Limited (IOCL) has joined hands with other oil marketing companies (OMCs) – Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) – for laying the world’s longest liquefied petroleum gas (LPG) pipeline of 2,757 km from Kandla in Gujarat to Gorakhpur in Uttar Pradesh. The pipeline is estimated to entail an investment of Rs 100 billion and will connect three major states with the west coast to get LPG to 22 bottling plants of the three OMCs. The Kandla-Gorakhpur LPG pipeline, once completed, will be able to transport up to 8.25 million tonnes (mt) of LPG per year, which amounts to 25 per cent of the country’s LPG demand. The project will be implemented by the JV of IOCL, BPCL and HPCL which hold shares in a 50:25:25 ratio. The pipeline will source LPG from three import terminals on the west coast and two refineries at Koyali and Bina. The LPG will be supplied to 22 bottling plants – three in Gujarat, six in Madhya Pradesh and 13 in Uttar Pradesh. In addition, it will also supply LPG to 21 bottling plants in Rajasthan, Gujarat, Madhya Pradesh, Maharashtra and Uttar Pradesh.