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Work on Kandla-Gorakhpur LPG pipeline project to begin in April 2020

Monday, 14 Oct 2019
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IHB is planning to develop petroleum and petroleum products (LPG) pipeline network along Kandla (Gujarat) to Gorakhpur (Uttar Pradesh). The project will also have a branch pipeline to Ujjain (Madhya Pradesh) and Varanasi (Uttar Pradesh) in length of 2,757 km with additional feeder line of Pipavav-Ahmedabad, Dahej-Koyali and associated branch line.

The LPG pipeline has been conceived as one of the longest such pipelines in the world. It will connect eastern India with the west coast. The project will entail an investment of Rs 9,000 crore.

The Kandla-Gorakhpur LPG Pipeline is being implemented by a consortium of three companies, namely, the Indian Oil Corporation (IOC) with 50 percent share, and the Bharat Petroleum Corporation (BPCL) as well as the Hindustan Petroleum Corporation (HPCL) each with 25 percent share.

The LPG pipeline will be directly linked with 22 LPG bottling plants -- of which three will be in Gujarat, six in Madhya Pradesh and 13 in Uttar Pradesh for product supply. This single pipeline will transport 8.5 million tpa of LPG, which is about 25 percent of India’s total LPG demand.

The pipeline will also supply bulk LPG through road-bridging to nine more LPG bottling plants in Uttar Pradesh, located at Shahjahanpur, Farrukhabad, Kashipur, Lakhimpur Kheri, Saleempur, Bareilly, Sultanpur and two plants at Gonda.

In February 2017, EoIs were invited from contractors to execute the project. A year later in March, bids were invited for route survey and geotechnical investigation work for the project. The foundation stone for the project was laid by Prime Minister Narendra Modi in February 2019.

In June 2019, IOCL, BPCL and HPCL signed an agreement for formation of a joint venture company for implementation and subsequent operation of the project.

As per the latest information gathered by Projects Today, route survey and geotechnical investigation work was completed. The construction work on the project is expected to commence by April 2020.

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