IndianOil LPG import terminal to reduce refill backlog in Kerala -Governance Now

IndianOil LPG import terminal to reduce refill backlog in Kerala

Kochi-Salem LPG pipeline and a bulk terminal at Palakkad, is being set up at a cost of Rs 2,200 crore

GN Bureau | June 24, 2017

#IndianOil #LPG

IndianOil is currently transporting bulk LPG from Mangalore to various LPG bottling plants in north Kerala through about 100 bullet trucks every day, which ply on narrow highways. A pipeline connecting the proposed LPG import terminal to Kochi Refineries Limited and the LPG bottling plants at Udayamperoor, Palakkad, Coimbatore, Erode and Salem would help in reducing congestion on the state highways.

The comprehensive project of the import terminal, a multi-user liquid terminal, the Kochi-Salem LPG pipeline and a bulk terminal at Palakkad, is being set up at a cost of Rs 2,200 crore, out of which about Rs 670 crore is towards labour cost. The LPG import terminal is a project of national importance and is crucial for maintaining timely supplies of LPG as cooking gas to millions of homes.

The terminal will store LPG in mounded vessels, which are considered the safest in the industry worldwide. These vessels are made of 45-mm thick boiler quality steel plates and will be buried deep in the sand, surrounded by a 1.25-metre thick reinforced concrete wall.

It is being equipped with automatic fire-protection systems as per the norms of the Oil Industry Safety Directorate (OISD). It is being constructed in the Special Economic Zone notified by the central government in 2006 for the specific purpose of setting up industries. The coastal stretch of the project is only 690 metres and hence will not disturb any of the fishing activities.

Notably, the demand for LPG grew at more than 10 percent last year and is expected to grow at the same levels in future. Moreover, the penetration of LPG as cooking gas in the country has jumped to 72 percent in 2016-17 and the government expects it to reach 95 percent by the year 2022.

Research has shown that use of firewood in the kitchen is equivalent to smoking 400 cigarettes per hour. LPG, being a clean cooking fuel, would help improve the health of millions of women and their family members. Being a faster mode of cooking, it also improves productivity of women in households.

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