Indian Oil Corporation targets to meet Kerala's high LPG demand
The project is expected to earn the state ex-chequer an additional revenue of Rs 300 cr /year.
Kochi: The LPG Import Terminal project is linked to the laying of the 498 km long, Kochi-Salem LPG Pipeline (KSPPL) that originates from here and traverses via Kochi Refinery, IOC’s Cochin Bottling Plant and BPC’s upcoming Bulk LPG Terminal at Palakkad and terminates at Salem. This pipeline will also feed IOC’s LPG bottling plants at Coimbatore and Erode. The entire project entails an investment of more than Rs 2200 cr and is targeted to be completed by February 2018. The project is expected to earn the state ex-chequer an additional revenue of Rs 300 cr /year.
With the commissiing LPG Terminal and pipeline, IOCL expects the inter-state bullet truck movement to come down to 20-30 per day from the present 70-80 trucks traversing daily from Mangalore to Kerala. In other words, monthly to and fro movement of around 1500 bullet tankers will be reduced. The present storage capacity of Kochi plant is sufficient only for 1.5 days of production. With the augmentation of capacity the storage facility will be increased to eight days. This will help to tide over any emergency supply shortage issues and help in improving the LPG supply situation in Kerala. The LPG demand in the state is growing at a rate of 11 per cent per annum.