IDCO signs MoU with IOCL on gas distribution

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    Reported by Chinmaya Dehury/Edited by Sandeep Sahu

    BHUBANESWAR, July 29: The Odisha Industrial Infrastructure Development Corporation (IDCO) today signed a Memorandum of Understanding (MoU) with oil marketing major Indian Oil Corporation Ltd (IOCL) for development of gas distribution infrastructure in the state.

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    The MoU was signed by IDCO CMD Vishal Dev and IOCL executive director AK Marchanda in presence of Niranjan Pujari, state Industries minister, for natural gas infrastructure, city gas distribution and supply of gas to industries.

    Pujari said the gas distribution network will be initiated in Bhubaneswar on a pilot basis and would be extended to other cities of the state in a phased manner.

    As per the terms of the draft MoU, both entities would explore possible cooperation in the areas of total energy solutions, especially natural gas. They would also strive towards development of infrastructure such as pipelines, city gas distribution network and liquefied natural gas (LNG) import terminals for ensuring availability of natural gas to all consumers in domestic, commercial, industrial and transport sectors after obtaining all due permissions from regulatory bodies.

    To meet the demand of natural gas in the eastern region, IOCL has plans to set up a five million tonne per annum (MTPA) LNG terminal at Dhamara. IOCL has already entered into a MoU with Dhamara Port Company Ltd (DPCL) for the project.

    It may be noted that Petroleum and Natural Gas Regulatory Board (PNGRB), the upstream regulator for the petroleum sector, had identified nine locations in the state – Bhubaneswar, Khurda, Rourkela, Bhadrak, Jajpur, Anandpur, Baripada, Balasore and Kamakhyanagar- for development of the city gas distribution network (CGD). The CGD network would involve distribution of compressed natural gas (CNG) and LNG for domestic and industrial use.