ONGC in talks with HPCL to buy stake in Mundra-Delhi pipeline
Tue, 13 April 2004
TALKS are being held between India’s ONGC and domestic oil marketing company HPCL for equity participation in its $303.7 million Mundra-Delhi petroleum products pipeline.
According to sources, HPCL has offered ONGC a 26% equity in the pipeline project.
The project, which is proposed to be financed in a 1:1 debt-equity ratio, would be commissioned in 36 months and would have tap-off points at Palanpur, Ajmer, Jaipur, Rewari and Delhi (Bahadurgarh). When contacted, HPCL officials did not comment on the move. The 1,008-km long pipeline will have 25% excess capacity that will be leased to other firms interested in moving their petroleum products to western India to high-consumption centres in the north. The pipeline will have a capacity of transporting 5.3m. tons of products a year.