The State Government has inked a pact with the Indian Oil Corporation limited (IOCl) to implement an ambitious project to distribute liquified Natural Gas (lNG) in both urban and industrial areas of the State through pipeline to avoid the hassles of booking and delayed delivery.
The Infrastructure Development Corporation, (IDCO) and IOCl would jointly promote infrastructure in the State for distribution of the gas. The MoU was signed by IDCO CMD Bishal Dev on behalf of the State Government and IOCl Executive Director AK Marchada in presence of Industries Minister Niranjan Pujari at the State Secretariat on Monday.
Stating that the joint venture project would create infrastructural network for pipeline connectivity to supply lNG to the households and other industrial, commercial and vehicle purposes, the Industries Minister said, “The initiative would give a fillip to the much needed energy security of the State through clean and green energy.”
He said that it would also boost fertilizer, power and petrochemicals as well as downstream industries in metal sector and meet the domestic demand for lNG and promote utilization of CNG in transport sector.
In the first phase, the possibility of supplying lNG through pipelines in the capital city Bhubaneswar would be explored. Indian Oil Corporation limited (IOCl) Executive Director Marchada said in the preliminary phase, IDCO and IOCl would jointly assess the requirement and demand of natural gas and subsequently develop necessary infrastructure so as to make gas reach the demand centers.
According to official sources, the draft MoU also envisaged that both signatories would jointly conduct techno-commercial studies and engage consultants, if necessary, based on demand potential and its spread across the State to arrive at optimal requirement of infrastructure such as terminals, pipelines and City Gas Distributions ( CGDs) for sourcing, distribution and marketing of natural gas along with stage-wise development plans and feasible supply options on a long-term competitive basis.
In order to cater to the needs of the lNG in the eastern States, the IOCl had already signed a MoU with the Dhamara Port authority in Bhadrak district for setting up of the first lNG terminal in the State, said the IOCl Executive Director.
“GAIl is also implementing the Surat- Paradip Gas Pipeline. With the lNG terminal and gas pipeline ventures, natural gas would be available across the State which shall act as a catalyst for industry and overall economic growth of Odisha,” said Marchada.
Meanwhile, the Petroleum and Natural Gas Regulatory Board (PNGRB) has already identified nine locations in the State such as Bhubaneswar, Jajpaur, Rourkela, Anandpur, Kamakhyanagar ,Baripada and Baleswar for development of the city gas distribution network (CGD).