IOCL partners with BPCL, HPCL to operate LNG pipeline

IOCL, BPCL and HPCL have signed an agreement to form a joint venture company to implement and operate a 2,747 Km long LPG Pipeline from Kandla in Gujarat to Gorakhpur in Uttar Pradesh. As per the agreement, IndianOil, BPCL and HPCL will have 50 per cent, 25 per cent and 25 per cent equity holding in the company, respectively.

Indian Oil Corporation Limited (IOCL) is a state-owned gas and oil company based in Mumbai with business in hydrocarbon value-chain, refining, pipeline transportation, exploration and production of crude oil, natural gas, etc. Bharat Petroleum Corporation Limited(BPCL) is an Indian government controlled Maharatna oil and gas company operating two large refineries located in Kochi and Mumbai. Hindustan Petroleum Corporation Limited (HPCL) is an Indian oil and natural gas company having about 25 per cent market share in India among public sector companies.

The proposed 2,747 Km long LPG pipeline will be used to deliver the product from Kandla and other LPG import terminals on the West coast to around 22 LPG bottling plants owned by the three promoter companies. Apart from these 21 more bottling plants will benefit from this pipeline.

On Tuesday, the stock price of Indian Oil decreased by 2.28 per cent to Rs. 165.30. The closing price of BPCL stock was Rs. 408.95 which Rs. 6.85 lower than its previous close. As for HPCL, the stock price fell by 1.93 per cent to a closing price Rs. 318.00.