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India's Share is 46% in Asia's Pipeline Length Addition

During 2023-27

India will contribute to 46 percent of pipeline length addition in Asia during 2023-27. The projects accounting for 27,543 kilometers have already been approved. The projects nearing completion include Jagdishpur-Haldia Phase II gas pipeline (1,900 kilometers) and Kandla-Gorakhpur LPG pipeline (2,809 kilometers).

May 17, 2023

According to GlobalData's recent report, India's planned and announced trunk/transmission pipeline projects will amount to 46 percent of Asia's overall projects to be undertaken during 2023-27. The report also India will add 27,543 kilometers of pipeline length through its projects that have cleared all necessary approvals. Meanwhile, projects that have been announced but are yet to get approvals shall add 2,208 kilometers of pipeline length.

The Kandla-Gorakhpur LPG pipeline is 2,809 kilometers long and is the largest upcoming oil and gas pipeline project. The pipeline will satiate the LPG bottling facilities of Gujarat, Madhya Pradesh, and Uttar Pradesh. The pipeline will become operational in 2024.

The Jagdishpur-Haldia Phase II gas pipeline comes second with a length of 1,900 kilometers. GAIL India is the operator and 100 percent equity owner of the project, which shall become operational in 2023. The pipeline will connect eastern states, such as West Bengal, with the national gas transmission network.

Ms. Bhargavi Gandham, Oil & Gas Analyst at GlobalData, said, “Pipelines are an efficient and cheaper way of transporting oil and gas for large countries such as India. The growing economy and strong demand for oil and gas are mainly driving pipeline additions in the country.”

Ms. Bhargavi further shared, “Mehsana-Bhatinda gas pipeline stands third with a total length of 1834 km. GSPL India Gasnet Ltd is the operator of this pipeline, which is expected to commence operations in 2023. The pipeline runs through the states of Gujarat, Punjab, and Rajasthan, giving a further boost to industrial development. For instance, Rajasthan announced plans to primarily develop furnace-based industrial clusters along the pipeline route to take advantage of relatively cheaper natural gas for production.”

IOC to Spend INR 17 Billion to Construct 2 Petroleum Pipelines

India will spend over INR 17 billion to construct 2 petroleum pipelines and 1 greenfield terminal out of the 4 identified projects. IOC shall construct Siliguri-Jhapa Pipeline, Amlekhganj-Lothar Petroleum Pipeline, and the Jhapa terminal, while Nepal Oil Corporation will construct the Chitwan terminal.

May 26, 2023 from Amlekhganj, Bara (Nepal), to Lothar, Chitwan, (Nepal). The projects have been in discussion between Nepal Oil Corporation and Indian Oil Corporation (IOC).

India will be spending over INR 17 billion on the construction of 2 petroleum pipeline projects and a storage facility. The two projects include pipeline construction from Siliguri, India, to Jhapa, Nepal, and

Nepal Oil Corporation has identified four projects: Siliguri-Jhapa pipeline, the Amlekhganj-Lothar petroleum pipeline, and greenfield terminals at Lothar in Jhapa and in Chitwan. IOC will construct SiliguriJhapa Pipeline, Amlekhganj-Lothar Petroleum Pipeline, and the terminal at Jhapa under grants. The 62kilometer Amlekhganj-Lothar petroleum pipeline is estimated to cost INR 274 crores; the 50-kilometer (35 kilometers in India and 15 kilometers in Nepal) SiliguriJhapa pipeline will cost INR 288 crores; the Jhapa terminal will cost INR 502 crores.

The Chitwan terminal shall be constructed by India and Nepal Oil Corporation will bear the cost of INR 618 crores. The corporation has already purchased land to build terminals. The fuel storage capacity of the Jhapa terminal will be 42,000 kiloliters and the Lothar terminal will be 103,150 kiloliters.

Mr. Pushpa Kamal Dahal, Prime Minister of Nepal, visited India on May 31, 2023.

Mr. Ramesh Rijal, Minister for Industry, Commerce and Supplies of Nepal, who is also participating in the visit said, “The Government of India has agreed to build a petroleum pipeline under a grant. An agreement will be reached during the PM's upcoming visit to India.”

India has helped Nepal build various petroleum pipelines. The Motihari-Amlekhganj petroleum pipeline, constructed by IOC, is already exporting diesel to Nepal. The pipelines help cut down transportation costs, maintain the purity of products, and control leakages, theft, and adulteration.

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