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IOC begins stockpiling 15 days supply of LPG
New Delhi, Feb 07: State-owned Indian Oil Corporation (IOC) has begun stockpiling 15 days supply of domestic cooking gas (LPG) to meet contingencies like disruption in crude oil supplies in the event of war in Iraq.
New Delhi, Feb 07: State-owned Indian Oil Corporation (IOC) has begun stockpiling 15 days supply of domestic cooking gas (LPG) to meet contingencies like disruption in crude oil supplies in the event of war in Iraq.
IOC is importing 120,000 tonnes of LPG to tank up 360,000 tonnes by the end of this month, company sources said. Contracts have already been placed with Saudia Arabia, Petronas of Malaysia and UAE for 65,000 tonnes of LPG and tenders for four more cargoes of LPG are likely this week.
Sources said that LPG stocks had fallen to just nine days supply earlier this month following which government directives were sent to IOC to top up its tank besides asking LPG producers like Oil and Natural Gas Corporation (ONGC) and Gail India Ltd to increase their production.
LPG consumption in December 2002 was 717,900 tonnes.
As part of the contingency plan, government has asked oil companies to top up their tanks to maintain 15 days crude stockpile and 45 days product in their tanks at all times.
Besides, they have been asked to place advance contracts and source crude oil from countries away from conflict zone.
IOC chairman M S Ramachandran had yesterday said that crude supplies to India were unlikely to be affected as key oil exporters neighbourng Iraq, namely Saudi Arabia and Kuwait have put in place alternative arrangements for regular supplies.
"Saudi Arabia has an oil loading terminal in Red Sea which would be used in case war breaks out in Gulf while Kuwait will make deliveries under US security cover," he said.
IOC is importing 120,000 tonnes of LPG to tank up 360,000 tonnes by the end of this month, company sources said. Contracts have already been placed with Saudia Arabia, Petronas of Malaysia and UAE for 65,000 tonnes of LPG and tenders for four more cargoes of LPG are likely this week.
Sources said that LPG stocks had fallen to just nine days supply earlier this month following which government directives were sent to IOC to top up its tank besides asking LPG producers like Oil and Natural Gas Corporation (ONGC) and Gail India Ltd to increase their production.
LPG consumption in December 2002 was 717,900 tonnes.
As part of the contingency plan, government has asked oil companies to top up their tanks to maintain 15 days crude stockpile and 45 days product in their tanks at all times.
Besides, they have been asked to place advance contracts and source crude oil from countries away from conflict zone.
IOC chairman M S Ramachandran had yesterday said that crude supplies to India were unlikely to be affected as key oil exporters neighbourng Iraq, namely Saudi Arabia and Kuwait have put in place alternative arrangements for regular supplies.
"Saudi Arabia has an oil loading terminal in Red Sea which would be used in case war breaks out in Gulf while Kuwait will make deliveries under US security cover," he said.
Bureau Report