The Indian Oil Corporation Ltd announced it will invest in building a liquefied petroleum gas import facility and oil pipeline at Paradip in Odisha, India, according to The India Times. The purpose of the LPG facility is to meet the demand for cooking gas in the eastern parts of the nation. The facility will also be able to process a broad range of grades of crude oil, including high-sulfur heavy crudes.
The company's board approved plans for the pipeline, which will run from Paradip to Hyderabad. The company intends for the pipeline to be operational in three years and when finished, will have the capacity to move 4.5 million tons of oil each year.
India continues to work with Nepal
Due to its low price, LPG is the fastest growing fuel import for Nepal, an important trade partner for India, according to Nepal Oil Corporation, eKantipur reported. Demand for LPG rose 14.12 percent between 2012 and 2013 and 213 percent over the past decade.
India has promised to continue to supply Nepal with LPG, according to the source. To ensure there is no lapse in service, Indian Oil Corporation has been directed by lawmakers to increase the LPG quota 30,000 tons per month from its Barauni refinery for Nepal.
India, in conjunction with Nepal, is set to build a petroleum pipeline between India and Nepal. However, Indian officials have also said they are willing to build a gas pipeline between the two nations as well, eKantipur.com reported. Indian Minister of State for Petroleum and Natural Gas Dharmendra Pradham agreed to send a team to Nepal to see if laying a LPG and natural gas pipeline would be feasible.