IOC's Paradip, Haldia pipeline to go onstream in six weeks

Indian Oil Corporation(IOC)'s 330-km Paradip-Haldia crude oil pipeline will go on stream in four to six weeks, according to chairman, Sarthak Behuria.

The Rs 1,178 crore pipeline was originally slated to be commissioned in March 2006. The work on setting up a single point mooring and storage facility at Paradip was stalled due to issues ranging from technical problems to the replacement of the contractor, and this delayed the pipeline project.

Behuria admitted that IOC had run into rough weather at the last point connection in Paradip. He was talking to reporters on the sidelines of Intaglio, an international B-school meet hosted by the Indian Institute of Management in the city.

Crude from vessels would be stored at Paradip and pumped through the pipeline to Haldia.

Apart from ensuring assured supply of crude, the pipeline project will reduce the transportation cost of crude substantially.

The company is expecting a net positive impact of $1 a barrel on its gross refining margin.

In another development, the IOC chairman was scheduled to call on the West Bengal chief minister later today. But the agenda of his meeting was not divulged.

"IOC is keen on setting up a petrochemical unit at the proposed PCPIR (petroleum, chemical and petrochemicals) hub at Nayachar, but we haven't received any communication from the government of West Bengal so far", he said.