Indian Oil Corp to set up gas distribution network in Bihar
Patna: With a view to keeping pace with the increasing requirements of natural gas (NG) in the coming years and boost industrial development, Bihar government on Tuesday inked a memorandum of understanding (MoU) with Indian Oil Corporation Limited (IOCL) to set up gas distribution networks in different towns and cities of the state to ensure NG supply through pipelines.
The MoU, signed by state industries department technical development director Ravindra Prasad and IOCL GM (gas) SubratBarma in the presence of state industries minister Jai Kumar Singh aims at jointly develop NG infrastructure for total energy in the state. There has been a 5% dip in the use of petroleum products in the last two decades, in contrast to 2% increase in NG consumption across the globe during that period. In India, NG consumption has increased 3% in the same period.
The oil company plans to undertake techno-economic studies to plan gas infrastructure, undertake development of infrastructure facilities through separate joint ventures, explore forays in non-conventional energy sources, jointly develop gas markets in the state and participate in bidding rounds of Petroleum and Natural Gas Regulatory Board (PNGRB).
“Bihar is progressing under CM Nitish Kumar’s vision and we are also ready with a new industrial policy 2016. Hence, we want to offer not just basic facilities, but also latest technologies to attract more entrepreneurs to the state,” Singh said and added, “NG will play an important role in development of any area in the coming years and it is also a source of clean energy.”
IOCL’s executive director R K Tiku, who was also present on the occasion, said gas pipelines have boosted industrial growth across the world. “The groundwork for Jagdishpur-Haldia gas pipeline has commenced and it should be ready by early 2018. Most of our proposed projects are from branching the Jagdishpur-Haldia pipeline at Gaya towards Patna and north Bihar as the state’s industrial hubs are concentrated near Patna, Muzaffarpur and Begusarai,” he said and added that the agreement will help IOCL in getting permission or clearances. With a market share of just over 60% in Bihar for all products, when compared to other petroleum companies, IOCL aims to promote regasified liquefied natural gas (RLNG) in power, steel and fertilizer sectors, develop pipeline grid to bring NG near industrial clusters, supply NG to urban centres and make it the “most preferred energy solution provider” in Bihar.