Transportation of Oil & Gas through Pipelines

V.C. Sati
Chief Projects Manager(Projects-Systems) IOCL (Pipelines Division)
IndianOil

Cross Country Movement of Oil OIL

(Vital source of energy, essential for domestic, industry, agriculture and transport sectors)

Crude Oil
From Wells to Gathering Stations From Gathering Stations to Refineries
IndianOil

Finished Products
From Refineries to Consumption Centres From ports to Consumption Centres

Pipeline

Rail

Modes of Product Transportation Road

IndianOil

Coastal

Collaboration in Logistics Support The Modal Mix

a Ro d Ro a d
Road Ro ad
Road Road

Road
Road Road

tal as Co

Ra il
line ipe P
Ra i

Road

Ro ad

Road

ad Ro

ad Ro

ai l

Ro ad

ad Ro
R oa d

Source

Pip

Ra il

eli ne
d oa R

ad Ro

Road

il Ra

oa C a st

Road

Coastal
IndianOil

Typical Mode-wise Transportation of Petroleum Products INDIA*

Rail 30-33% Road/ Coastal 33-39% Coastal
27.36%

USA**
Rail
2.39%

Road
3.81%

Pipelines 31-34%
* Source : PPAC (June 2004)
IndianOil

Pipelines
66.44%
** Source : Association of Oil Pipelines, 2004
http://www.aopl.org/posted/888/Shift_Report_1984_2004.126714.pdf

Modes of Product Transportation

Most of the major consumption centres in India are land-locked. This makes only Road, Rail and Pipeline as the feasible means of transportation of petroleum. Tankers are used for movement between coastal locations.

IndianOil

Modes of Product Transportation

Road
Plays a crucial role in countrys transport sector for goods and passengers. For movement of petroleum products over long distances, road transportation is not very cost effective and efficient. Feasible only for short distances and secondary movement of petroleum products. Though movement by road results in excessive consumption of diesel and is a potential safety and environmental hazard, it still enjoys a large share in the modal mix due to unavoidable short distance movement from bulk depots to retails outlets.
IndianOil

Modes of Product Transportation

Railway
Traditionally, Railways have been the largest transporter of POL; developed since earlier days and cover substantial parts of the country. Besides petroleum products, railways also transport goods and passengers. Capacity of railways has already been over-stretched. With continuing growth on all spheres, railways transportation capacity would fall short of the transportation requirements. Due to cross-subsidisation, the freight for petroleum products is high. Rail transportation also leads to high energy consumption, environmental pollution and transit losses.
IndianOil

Modes of Product Transportation

Coastal
Since the major consumption centers of the country are located in the hinterland, the movement of petroleum products through tankers is somewhat limited. Tankers are used for movement between coastal locations. This mode also suffers from capacity constraints in terms of draft availability, navigational facilities, jetties etc.
IndianOil

Advantages of Pipeline Transportation

IndianOil

Advantages of Pipeline Transportation

Lower cost of transportation Lower transit losses Lower energy intensiveness Economies of scale Safety and Reliability - minimum disruptions Environment friendliness
IndianOil

Advantages of Pipeline Transportation

Multi-product handling Stationary carrier Augmentation at low cost Minimal land costs Decongestion of surface transport systems Pipelines are the best suited mode for transportation of large volumes of petroleum over long leads.
IndianOil

Pipelines An Introduction
The term pipeline in broader sense means a facility used to transport commodities from point of receipt to the point of delivery. Many commodities are transported through pipelines. Crude oil, petroleum products and gas are perhaps the most common commodities transported by pipelines.

IndianOil

Pipelines System
CRUDE TRANSPORTATION
CRUDE OIL IN SHIPS FLOATING HOSES SPM SYSTEM UNDER BUOY HOSES PUMPING UNITS PIPELINE END MANIFOLD CROSS COUNTRY PIPELINE OFFSHORE LINE OIL FIELDS

GATHERING STATION

SHORE TANKAGES

OFFSHORE / ONSHORE PIPELINE

REFINERY TANKAGE
IndianOil

Pipelines System
PRODUCT TRANSPORTATION
REFINED PRODUCT FROM REFINERIES REFINERYs PRODUCT TANKAGE IMPORTED / OTHER PRODUCT IN SHIP/OIL JETTY TANKAGES

PUMPING STATION

PUMPING CUM DELIVERY STATIONS OR DELIVERY STATION

DELIVERY TERMINAL

IndianOil

Introduction of Pipelines in Oil Transportation

The first cross country oil pipeline was laid in Pensylvania in 1879 from Bradford to Allen town, about 109 miles long and 6 in diameter. The long distance pipeline transportation got a boost during World War II when coastal tanker traffic was disrupted. Discoveries of giant oil fields in remote parts of the world led to planning and execution of correspondingly large pipeline networks. Pipeline industry has grown in parallel with the development of world oil industry over the last one century.
IndianOil

Pipeline Transportation : The Indian Scenario

IndianOil IndianOil

Development of Pipelines in India

Most of the earlier Refineries in India were installed at coastal locations, thus depending on coastal movement of crude oil. Further, the refining capacities products were either being low, the locally or

consumed

transported to the consumption centres by rail or road. After 1960, most of the Refineries were installed in land-locked locations necessitating laying of crude & product pipelines.
IndianOil

Contd...

Development of Pipelines in India

During 1960-63, Oil India Limited laid the first trunk crude oil pipeline, 1156 km long from Naharkatiya and Moran oil fields to the Refineries at Guwahati and Barauni.

IndianOil

Development of Pipelines in India

The first cross country product pipeline was laid by IOCL during 1962-64 to transport products from Guwahati Refinery to Siliguri. Subsequently, number and the sea of crude 60s, 70s a oil and oil

product

pipelines were laid in 80s, including subcrude pipelines.

IndianOil

Development of Pipelines in India

The pipelines laid during the 60s were designed, engineered and constructed by foreign companies. However, the exposure to this technology enabled Indian engineers to gain confidence, and the pipelines which came up later, were designed and constructed with indigenous expertise.

The country today has about 20,000 km of major crude oil and product pipelines.
IndianOil

Jalandhar Bhatinda

Oil Pipelines in India : Industry Scene

Ambala Roorkee Sangrur Najibabad Panipat Meerut Nahorkatiya Tinsukia Delhi Rewari Loni Sanganer Mathura SiliguriBongaigaon Digboi Ajmer Jodhpur Numaligarh Chaksu Tundla Lucknow Kanpur Guwahati Kot Chittaurgarh Barauni Sidhpur Ahmedabad Rajbandh Kandla Ratlam Navagam Budge Mundra Jamnagar Maurigram Budge Koyali Indore Vadinar Dahej Ankleshwar Haldia Hazira Manmad Mumbai High Uran Mumbai Pune Secunderabad Paradip Vizag
IOCs Pipelines (Existing) Product Crude Oil IOCs Pipelines (On-going) Product Crude Oil Other Companies Pipelines(Existing) Product Crude Oil LPG

HazarwadiPakni Mangalore

Vijayawada Chennai

Bangalore

Sankari Asanur Karur Coimbatore Trichy Kochi Madurai

IndianOil

Usage of Natural Gas: As Fuel

IndianOil

Usage of Natural Gas: As Feedstock

IndianOil

Demand for Natural Gas

2 8 3

300

(MMSCMD)

2 2 2

Demand

200
113

100

0 2008 2010 2012

Year Current availability 116 MMSCMD

Source IndianOil : Report of the Working Group on Petroleum & Natural Gas Sector for the XI Plan (2007-2012)

Usage of Natural Gas

Sector wise gas demand Projections 2011-12

12% 7% 6% 28% Power Industrial Fertilizer Petrochem./Ref. City Gas Sponge Iron/Steel 3% 44%

Source : Report of the Working Group on Petroleum & Natural Gas Sector for the XI Plan (2007-2012)
IndianOil

Transportation of Natural Gas

Pipelines

By ship as Liquefied Natural Gas (LNG)

By ship as compressed natural gas (CNG)

IndianOil

LNG at Doorstep Tanker loading facility

IndianOil

Natural Gas: Market Players

Upstream
ONGC, OIL, RIL, GSPC etc.

Midstream
GAIL, GSPL etc.

Downstream
GAIL, GGCL, IGL, MGL etc.

IndianOil

City gas Distribution

Types of Consumers

IndianOil

CGD Networks in India

CGD Network
Existing

No. of Cities
25

Major Cities
Delhi, Mumbai, Surat, Ahmedabad, Baroda, Hydrabad, Lucknow, Agra, Kolkata etc. Sonepat, Meerut, Mathura, Chandigarh, Allahabad etc. Channai, Bangalore, Patna, Bhopal, Pune, Bhubaneswar, Guwahati, Jaipur, Nagpur etc.

Ongoing

13

Planned

200

IndianOil

Natural Gas Infrastructure-Existing & Future

NANGAL BHATINDA DELHI

GURGAUN MATHANIA AGRA

BAREILLY AURAIYA LUCKNOW

JAGDISHPUR KANPUR

DISPUR PATNA

DAHEJ I & II 10 mmtpa*

BARMER GWALIOR

PHOOLPUR

RAJKOT

KOTA JHANSI UJJAIN VIJAYPUR

BHOPAL
AHMEDABAD

VARANASI

GAYA

AGARTALA

LNG Existing

BOKARO KOLKATA

HAZIRA 2.5 mmtpa

BHARUCH BARODA SURAT

CUTTACK

DAMRA BHUBANESHWAR
RAJAMUNDRY

Transmission Pipelines
Existing GAILs Planned Pipeline RILs East West Pipeline RILs Planned Pipeline GSPCs Planned Pipeline

MUMBAI

PUNE SOLAPUR

KRISHNAPATNAM KAKINADA

DABHOL 5 mmtpa

KOLHAPUR GOA

HYDERABAD

VIJAYAWADA NELLORE

HASAN MANGLORE

BANGLORE

CHENNAI

City Gas/ CNG

Existing Planned LNG Terminal

KANJIKKOD
COIMBTORE

TIRUCHCHIRAPALLI

TUTICORIN

IndianOil

INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET

THANK YOU
IndianOil