HPCL begins emergency import of LPG due to water crisis

Mangalore Today News Network

Mangaluru, May 6, 2016: Unprecedented water crisis that has gripped the port town of Mangaluru has hit LPG production at  MRPL Mangalore Refinery and Petrochemicals Ltd.  The refinery, which used to produce about 2,500 tonnes of LPG a day from its Phase III operations, has scaled it down to 800 tonnes.

As a result, MLIF, Mangaluru LPG Import Facility of  HPCL, Hindustan Petroleum Corporation Ltd.  which supplies about 5,000 tonnes of LPG to Karnataka through IOCL, BPCL and its own network has resorted to emergency import to keep the supply intact. Officials said the supply to consumers would not be hit.

A senior HPCL official told media that while the MRPL used to provide 2,500 tonnes of LPG, MLIF used to import another 2,500 tonnes to meet the demand. With the MRPL now supplying only 800 tonnes of LPG, the facility is importing an additional 1,800 tonnes, the official said. IOCL and BPCL sometimes used to procure from ELF LPG import facility too in Mangaluru, he added.

He said there had not been any problem in the imports, though the MLIF had to resort to “panic buying” and vessels were lined up to deliver LPG. Asked about the financial impact, the official said there was not much of a price difference. However, there would be some incidental charges as the company had resorted to emergency buying and it had to pay some premium. The company’s aim was to ensure proper and adequate supply of LPG to consumers than anything else, the official added.

Varadachari, executive director of IOCL, Karnataka, who is the State-level coordinator for oil companies, stated that there was no need to worry and that adequate imports were being made.  Dakshina Kannada’s lifeline Nethravati has dried up, thereby affecting normal life in the entire district, including in the industries.