Indian Oil Corporation to invest $840m in Kerala, India

Indian Oil Corporation (IOCL) has announced its plan to invest Rs54bn ($840m) on multiple infrastructure projects in Kerala, the southern state of India.

IOCL Kerala head P.S. Mony stated that the company has planned to develop a 600,000 metric tonnes capacity LPG import terminal at Puthuvypeen SEZ of Cochin Port Trust, reported IANS.

Mony was quoted by this agency as saying: “The project also includes laying of a pipeline from the Jetty to Kochi refinery via IOCL's LPG Plant at Kochi.

“This pipeline would be hooked to Kochi-Salem Pipeline, which is also under construction. The entire project, which also includes a LPG terminal being constructed by BPCL at Palakkad is expected to cost around Rs2,200 crore.

“The pipeline is being constructed jointly by IOCL and BPCL.”

Construction of the terminal holds high importance as the domestic demand for LPG is rising at an increasing rate.

Mony was quoted as saying: “The LPG customer base in the country is presently 15 crores, which is expected to double by 2020.

“LPG demand in the country is presently growing by 11%. The LPG consumption of Kerala also is expected to rise significantly by 2019.

"LPG imports are expected to rise significantly by 2020 from the current levels of 50% and IOCL is augmenting the LPG infrastructure across the country, including the setting up of 23 new bottling olants, the Mundra-Gorakhpur LPG Pipeline besides the Import Terminal at Kochi and the Kochi-Salem Pipeline.”

The LNG terminal is expected to be completed by February next year.

IOCL is also developing the Ernakulam City Gas Project in collaboration with the Adani group.