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Dutch firm to supply gas to Tata Yodogawa

Lola Nayar in New Delhi

A Dutch multinational company is to supply 3,500 metric tonnes of liquefied petroleum gas to Tata Steel subsidiary Tata Yodogawa Ltd at its unit in Jamshedpur in Jharkhand.

SHV Energy North East Ltd, a part of the Dutch SHV Group, will invest Rs 10 million to set up a storage and distribution system on a build-own-maintain basis at the TAYO factory in Adityapur Complex at Gamhari, Jharkhand, according to SHV officials.

The supply contract for 3,500 MT, valued at Rs 50 million annually, for a period of 10 years was signed Tuesday, said Ajay Kumar, chief operating officer of SHV India Ltd. "The LPG supplied by SHV will be procured from Haldia Petrochemicals Ltd as we have already tied up with them for a long term supply of LPG."

A joint venture of Tata Steel with Yodogawa Steel Works and Nissho Iwai Corporation of Japan, TAYO is one of India's leading roll manufacturers and suppliers. Its products are exported to Austria, Bangladesh, Egypt, Iran, the United States, Germany and Oman.

One of the largest private sector LPG distributors in the country, SHV has already invested over Rs 6 billion in India and has two storage terminals at Porbandar in Gujarat and Visakhapatnam.

"At any given time we have around 12,000 MT of gas in each of our two terminals," Sanjeev Sharma, vice president of SHV Energy North, said.

Though the terminals have a capacity to hold 36,000 MT of LPG, the Dutch LPG major, which is the largest distributor in the world with sales of $10 billion, is not bringing in larger quantities as 'the market does not warrant it now'.

The company's current sales volume in India is 100,000 MT.

"Our main line of business being supply of LPG we are looking more at bulk supplies to industries and also to domestic consumers. We currently have around 130 industrial clients and hope to increase them two-fold every year."

New Holland Tractors, Oswal Cotton Mills and Naha Spinning Mills, and electric major like Bajaj and Philips are among SHV's major clients in India.

Though the company has no plans to enter into the pipeline business for transport of LPG, it has sounded out gas major Gas Authority of India Limited on using its pipeline for supply, said Sharma.

Indo-Asian News Service

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