Country’s biggest refiner, Indian Oil Corporation (IOC), is planning a Rs 1,400 crore LPG

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pipeline from Paradip to Haldia, which will be further extended to Durgapur. At present, the team involved is preparing the feasibility report.

K K Jha, director for pipelines of the company confirmed the development. “A team is working on the concept project of a new LPG pipeline from Paradip to Haldia,” Jha said without giving other details. According to a top official the new pipeline would be discussed at the next board meeting scheduled in October.

“The total length of the pipeline will be more than 700 km and the estimated cost of the pipeline will be close to Rs 1,400 crore,” the official said. The pipeline will supply gas to the company’s bottling plant in Balasore, Kalyani and Durgapur among others.

The ground level survey for the project has been done. If the board approves the initial feasibility report, a final report would be prepared with more specific details in another four to six months.

“We expect to get the complete investment approval by the end of the present financial year,” the official said.

After the complete approval of the project, IOC will take nearly 30 months for construction of the pipeline. The new LPG pipeline is likely to be operational by mid-2012.

The government-owned company is expanding its pipeline network that will offer a major competitive advantage in the corporation’s bid to streamline and optimise operations, so as to be the least-cost supplier in the market.

The company has already started a Rs 1,420 crore Paradip to Haldia crude oil pipeline system on April 4. The project is designed to transport 11 million tonnes of crude oil per year from Paradip to refineries at Haldia and Barauni. This pipeline will help the company to bring substantial savings in the cost of transportation, in addition to being environment-friendly. The project included, laying 330 km long pipeline linking Paradip with Haldia and Barauni refineries of IndianOil, installation of a single point mooring (SPM) system in the offshore waters of Paradip and a crude oil tank farm consisting of 15 crude oil storage tanks.