HEAT TRACED PIPELINE PROJECT

Project Report- Elective: PROJECT

MANAGEMENT

Abstract
A report on the various stages of prestigious heat traced pipeline project
Executive Summary
Refinery, embarked on its journey in 1966 with a capacity of 50,000 barrels per day, formerly
known as Cochin Refineries Limited, the refinery was originally established as a joint venture in
collaboration with Phillips Petroleum Corporation, USA. It was later renamed as Kochi Refineries
Limited, and today, it is a frontline entity as a unit of the Fortune 500 Oil and Gas Maharatna
Bharat Petroleum Corporation Limited with a capacity of 3,10,000 barrels per day.

Heat Traced Pipeline (HTPL) project is for laying a Skin effect Heat Traced Pipeline and
associated facilities connecting Kochi Refinery with Cochin Port for transporting high pour
products in marine tankers. Efficient utilization of capacities of each of the process units in the
two Refineries of BPCL namely Mumbai Refinery and Kochi Refinery will add tremendous value
to the Corporation. Transfer of intermediate process streams between the Refineries will ensure
that there are no restrictions in capacity utilization due to constraint on containment of these
intermediates within a Refinery. While existing piping from respective Ports to Refineries can be
used for transfer of low pour intermediates, for transfer of high pour intermediates like High &
Low Sulfur Vacuum Residues (HSVR & LSVR), Low Sulfur Heavy Stock (LSHS) and Vacuum Gas Oil
(VGO) there is a need to provide heat traced pipeline both at Mumbai and Kochi to ensure
transfer of theses streams. Once a heat traced pipeline is available, import of high pour
opportunity crudes also will be possible which will add further value to the Corporation.

This report give detail about one of the various yet important project which was implement in
Kochi Refinery, its various stages of project life cycle detailed assessment of the project, quality/
maturity of the project processes followed, the risk management strategies adopted etc.

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Introduction
Bharat Petroleum Corporation Ltd

Bharat Petroleum Corporation Ltd (BPCL) is a public sector undertaking of Govt. of India under
Ministry of Petroleum and Natural Gas. With its headquarters situated at Mumbai, BPCL is in
the business of petroleum refining and marketing of petroleum products. BPCL, currently a
Maharatna status company, BPCL is ranked 275 th position in the Fortune 500 global list of
companies in 2019 with revenues worth $ 42935 million, is also ranked 672 in the Forbes list.
BPCL has refineries in Mumbai and Kochi, a subsidiary refinery at Numaligarh, Assam and a Joint
Venture refinery at Bina in Madhya Pradesh. The company has storage installations at various
parts of the country, 50 liquefied petroleum gas (LPG) bottling plants, 13439 retail outlets as on
31st March 2016.The company has 7 strategic business units (SBUs) viz Refinery, Retail, Industrial
and Commercial, Lubricants, LPG, Aviation and Gas. The major products of the company are
transportation fuels such as Diesel, Petrol, Aviation Turbine fuel and other products such as LPG,
Naphtha, Kerosene, Bitumen, Furnace Oil, Lubricants, Coke etc.
BPCL has 5 Indian subsidiaries and 4 foreign subsidiaries as on 31 st March 2016. Further the
company has 19 associate companies including joint venture companies. The subsidiary
companies include Numaligarh Refinery Ltd, Bharat Petro Resources Limited (BPRL), Petronet
CCK Limited (PCCKL). BPCL is also involved in the city gas distribution business through joint
venture participation with GAIL.

Refineries under Bharat Petroleum Corporation Ltd .

There are four refineries under BPCL. The Mumbai Refinery and Kochi Refinery are own
refineries, Bharat Oman Refineries Ltd (BORL) is a Joint Venture refinery at Bina in Madhya
Pradesh and Subsidiary refinery in Numaligargh, in Assam.

Mumbai Refinery:

The Mumbai refinery of BPCL started as a private limited company under Burmah Shell
Refineries Limited commencing its operation in 1955. The refinery was renamed as Bharat
Petroleum Corporation Ltd. in 1976 post nationalisation of oil companies and was controlled by
Govt, of India. The refinery had an original crude refining capacity 2.2 Million Metric Tons Per
Annum (MMTPA), progressively increased its capacity to 12 MMTPM over the years.

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Kochi Refinery:

Kochi Refinery started as a joint venture refinery of Govt. of India, with finical and technical
collaboration with Philips Petroleum Corporation, USA and Duncan Brothers, Kolkata and
commenced its operation in 1966. Post nationalisation of Indian Petroleum Sector, the refinery
was retained as an independent public sector undertaking of Govt. of India with marketing
collaboration with Indian Oil Corporation Ltd. However, with a strategic sale of share holding of
Govt. of India, Kochi Refinery was merged with Bharat Petroleum Corporation Ltd in the year
2006. The refinery commenced with crude refining capacity of 2.5 MMTPA undergone various
capacity expansion processes and currently reached to 15.5 MMTPA refinery with the
commissioning of its Crude Distillation Unit 3 (CDU3).

Numaligarh Refinery

Numaligarh refinery is located at Golghat district is Assam is a joint venture refinery with BPCL,
Oil India Ltd, and Govt. of Assam. It has an installed capacity of 3 MMTPA and commenced its
operation in 1993. The refinery also produces all fuels such as Diesel, Petrol, Aviation turbine
fuel, Naphtha, LPG, Kerosene etc. utilizing the crude oil from Assam basin serving the North
Eastern states of the country.

Bharat Oman Refinery Ltd.

Bharat Oman Refinery Limited (BORL) is situated at Bina, in Sagar district of Madhya Pradesh, is
a joint venture refinery between Bharat Petroleum Corporation Ltd. and Oman Oil Company.
The refinery has facilities like a single point mooring facility and crude oil terminal at Vadinar,
Gujarat, crude oil transfer pipeline from Vadinar to Bina, various process units, utilities etc. The
refinery has an installed capacity of 6 MMTPA and complexity factor of 9.1 with capability to
process 100% sour crude oil.

Detail Profile of BPCL-Kochi Refinery

Kochi Refinery commenced its operation in September 1966 as a joint venture refinery of Govt.
of India with Philips Petroleum Corporation, USA and Duncan Brothers, Kolkata. Today it is a unit
of Bharat Petroleum Corporation Ltd, a Fortune 500 company. The refinery is formerly known as
Cochin Refineries Ltd, later renamed at Kochi Refineries Ltd got merged with BPCL in the year
2006. The refinery is situated at Ambalamugal in Kochi, Kerala. The original installed capacity of

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the refinery was 2.5 MMTA now grown into a mega refinery of capacity 15.5 MMTPA in various
phases. There are 3 crude distillation units currently available in the refinery having capacity
CDU1 of 4.5 MMTPA, CDU2 of 5 MMTPA and the new CDU3 of 10.5 MMTPA. The 10.5MMTPA
crude unit is just started its operation in September 2016 as part of major project namely
Integrated Refinery Expansion and Modernization Project (IREP). With the stabilization of the
new CDU3, the old CDU1of 4.5 MMTPA capacity has been decommissioned. There are around
26 products in the product portfolio of the refinery including petrochemical products such as
Benzene, Toluene, Propylene, Hydrogen, Sulphur and other specialty solvents in addition to the
range of transportation fuels such as Diesel, Petrol, Aviation Turbine Fuel and other petroleum
products such as LPG, Kerosene, Naphtha, Furnace oil, Bitumen etc.

Major Projects through which the Refinery has grown to the present level area:

The significant projects through which the Refinery has grown to the present level are the
following:

 Capacity enhancement from 2.5 MMTPA to 3.3 MMTPA in 1973

 Capacity enhancement from 3.3 MMTPA to 4.5 MMTPA in 1984 with the addition of
Fluidized catalytic cracking unit (FCCU)

 Capacity expansion from 4.5 MMTPA to 7.5 MMTPA in 1994

 Aromatic production facilities to make Benzene and Toluene in 1989

 A 2 MMTPA Diesel Hydro Desulphurization (DHDS) plant in 2000 to reduce the

sulphur content in Diesel

 Capacity Expansion cum Modernisation Project to enhance refining capacity to 9.5

MMTPA and upgrade auto fuels to BS III/ IV standards, progressively commissioned
during 2009-2011.

 Integrated Refinery Expansion Project (IREP) to enhance refining capacity to 15.5

MMTPA and quality upgradation of auto fuels to BS IV/ VI standards in 2017.

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Ongoing / Approved Major Projects

Kochi refinery is on the witnessing a major transformation to one of countries major petroleum and
petrochemical hub. The details of the projects underway are given below:
a. Propylene Derivative Petrochemical Project (PDPP): BPCL has commenced site activities to
set up a petrochemical complex at Kochi Refinery utilizing the Propylene generated at the
IREP units to manufacture Niche petrochemical products which are currently imported by the
country. The approved capital cost for this complex is Rs.5000 crores.
b. BS VI Motor Spirit Block Project (MSBP): Govt. of India directed oil companies to become
ready for marketing auto fuels meeting BS VI (Euro VI) specification by the year 2020.
Accordingly Kochi Refinery has just commenced the site work for its new project BSVI Motor
Spirit Block Project thereby capable of producing Diesel and Petrol complying to BS VI
specification by April 2020 at a project cost of Rs. 3313 crores.
c. Polyols Project: Second petrochemical project to produce polyols at an investment of
₹11,300 crore. An import substitute, polyols are used in the production of polyurethanes
used in diverse products such as automotive seats, mattresses and shoe soles.