IBP, Petronet LNG Sign MoC For Virtual LNG Pipeline

Kolkata, Aug 26 | Updated: Aug 27 2004, 05:30am hrs
IBP Co Ltd, an Indian Oil group company, and Petronet LNG Ltd have signed a memorandum of collaboration (MoC) on Thursday for supply and distribution of liquefied natural gas (LNG) through a system of virtual pipeline using cryogenic containers.

This will enable even direct use of LNG at the customers end using cryogenic technology. Although IBP is a petroleum-marketing company, it has expertise in cryogenic equipment-manufacturing and makes cryogenic containers for oxygen, acetylene and argon gases, as well as for preserving bull semen for artificial insemination.

We will start a pilot project in a couple of months in Maharashtra for this purpose and if it is successful, we will go for full commercial transportation of LNG in areas where Petronet does not have pipeline network, a senior IBP official told FE.

IBPs managing director and marketing director of IOC, NG Kannan, said that the company would make every effort to implement the project early so that the customers benefit out of this at the earliest.

IBP has already tied up with world cryogenic technology major Chart Industries Inc, USA, which would provide technological and collaborative support to IBP for developing the LNG distribution system throughout the country.

An IBP release said that the MoC was signed in Mumbai in the presence of Petronet LNGs managing director and chief executive officer SC Mathur, technical director Sham Sundar, finance director P Dasgupta, IBPs executive director PR Nambir and Dr Kannan.