HPCL, TotalFina to invest Rs 200 cr

The project, a 50:50 venture between the two partners, is unique in many ways. First, the underground caverns eliminate both natural and man-made hazards like sabotage, cyclones, quakes and explosions caused by leaks. Besides, surface land requirements are low and operating and maintenance costs are minimal. “As the LPG cavern are sealed with waterabove the surface of LPG any leak in tanks surface is automatically sealed with water. As and when required LPG is pumped out by pipes and transported,” HPCL officials say.

When completed it would be an engineering marvel as for the first time in India, LPG is being stored in underground caves. In the first step, three cavern would be dug and all the surface leaks are repaired. Later, LPG is pumped in and out as per the country’s requirements, officials add. With Vishakapatnam’s excellent harbour with a draft that can accommodate larger vessels, there is potential for coastal movement and re-export of LPG, officials add.

Incidentally, French oil major, Total has indicated that it is interested in picking up a stake in HPCL which has recently hiked its Vizag capacity from 4.5 mmtpa to 7 mmtpa. The Corporation is looking for a third partner for its 550 mw power project near its refinery for which financial closure agreement would be signed any time. The power project is being set up in association withAndhra Pradesh State power board.