HPCL to build third LPG underground storage facility, in Gujarat

23 Mar 2023 , 12:12 PM

The state-owned Hindustan Petroleum Corporation (HPCL) intends to build India’s third Liquefied Petroleum Gas (LPG) cavern or underground storage facility.

According to sources familiar with the matter, HPCL intends to build a new LPG cavern with the ability to hold 60,000 tonnes of LPG in Vadodara, Gujarat. The project is expected to cost up to Rs 1,000 crore.

HPCL, which is the third-largest oil marketing firm in the country, currently runs an LPG cavern in Visakhapatnam, Andhra Pradesh, and has another one being built in Mangalore, Karnataka.

Through their equal joint venture, South Asia LPG or SALPG, HPCL, and TotalEnergies operate a 60,000-tonne capacity LPG underground storage facility in Visakhapatnam, Andhra Pradesh.

The facility opened in 2007 with a Rs 333 crore investment.

In addition to the above, the LPG cavern in Gujarat is also expected to provide assistance to the Kandla to Gorakhpur LPG pipeline project.

The pipeline, which spans over 2,757 kilometers, is a joint venture between Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, and HPCL, with a 50:25:25 partnership ratio.

The pipeline will allow for the cost-effective and environmentally friendly transportation of LPG from the western coast to various demand centres, replacing the current road/rail mode of transportation.

It would also help to address the LPG shortage by transporting LPG via pipeline from the west coast to bottling plants in these three states.

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