Pipelines Bridging the Gap

General Manager Indian Oil Corporation Limited

S.K. SATIJA

STRUCTURE OF PRESENTATION
Historical Perspective Oil Pipelines Pipeline Infrastructure in India Technological Developments Modewise Transportation of Petroleum Products New Pipelines bridging Gap Present Industry Scenario- Critical Aspects

History of Oil Pipelines

First trunk pipeline dates back to 1870s

Long distance pipeline transportation got a boost during World War-II when coastal tanker traffic was disrupted in U.S

History of Oil Pipelines

Discoveries of giant oil fields in remote parts of the world led to development of correspondingly large crude oil pipeline networks

Pipeline industry has grown in parallel with the development of world oil industry over the last one century

Growth of Pipelines in India

First crude oil pipeline in India laid from Digboi oil fields

to Digboi refinery before independence

During 1960-63, Oil India Limited laid 1156 km long

first trunk crude oil pipeline, from Naharkatiya and Moran oil fields to the refineries at Guwahati and Barauni
IndianOil laid its first cross country product pipeline

during 1962-64 to transport products from Guwahati refinery to Siliguri

Growth of Pipelines in India

Government & Industry started realizing unique advantages

of oil transportation through pipelines

Subsequently, a number of product and crude oil pipelines

were laid in the 60s, 70s and 80s, including sub-sea crude oil pipelines
This led to development of this industry, especially during

last two decades

Growth of Pipelines in India

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

India today has over 22500 km of major crude oil and product pipelines out of which IOCL owns & operates more than 11,000 km of Pipelines

Drivers for Growth of Pipelines in India

Low consumption of petro products in the initial years post independence due to subdued economic growth

Early refineries in India installed at coastal locations requiring only coastal movement of crude oil

Refining capacities being low, products were either consumed locally or transported to the consumption centres by rail or road

Drivers for Growth of Pipelines in India

Traditionally rail network has been quite widespread in India. Pipelines relatively came into focus quite late

After 1960, most of the refineries came up at land-locked locations necessitating laying of crude and product pipelines.

Typical Advantages of Pipelines

Lower cost of transportation

Lower transit losses

Energy efficient

Safety and Reliability

Environment friendly

about 30-50% of the railway freight and 4 to 5 times cheaper than road transportation

PL- 0.05%

Max.,
Railway0.25%, Road0.5%

Railway mode consumes 34 times and road mode about 20 times more energy than Pipeline mode

minimum disruptions

3-4 times lesser Carbon emissions than Railway mode

Existing Liquid Pipelines : Industry

As on 1.12.2012 IOCL Length (Kms.) BPCL# HPCL## GAIL OIL ONGC ### Cairn Total Industry

Product
Crude Oil Total

6632
4376 11008

1939
935 2874

2776
1017 3793

1691
1691

654
1193 1847.3

676 676

667 667

13692
8864 22556

Capacity (MMTPA) Product 36.86 10.35 22.27 3.6 1.70 74.78

Crude Oil
Total
#Includes

40.40
77.26

6.0
16.35

9.0
31.27

3.6

8.40
10.1

43.84
43.84

7.5
7.5

115.1
189.88

Petronet Cochin-Coimbatore-Karur Product pipeline Petronet Mangalore-Hassan-Bangalore Product Pipeline ### Source: PPAC
##Includes

IOCLs Existing Pipeline Network

Jalandhar Bhatinda Sangrur Panipat Ambala Roorkee Najibabad Tinsukia Bongaigaon Siliguri Guwahati Rajbandh Mourigram Haldia Hazira
Paradip

Mundra Kandla

Meerut Delhi Rewari Mathura Sanganer Tundla Ajmer Chaksu Bharatpur Lucknow Jodhpur Barauni Kanpur Kot Chittaurgarh Sidhpur Ahmedabad
Navagam

Digboi

Vadinar Dahe j

Koyali Ratlam

as on 1.12.2012
Pipeline Length (km) 6632 4376 11008 132 Capacity (MMTPA) 36.86 40.40 77.26 9.5
MMSCMD

Product Crude Total Gas

Bangalore Bangalore AFS

Chennai Asanur
CBR

LEGEND
Product Crude Oil Gas Refinery

Chennai AFS

Sankari

Trichy Madurai

12

Oil Pipelines
Jalandhar Bhatinda

Industry Scene

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

HazarwadiPakni Vijayawada Mangalore Bangalore Chennai Sankari Asanur Karur Coimbatore Trichy Kochi Madurai

Product Crude Oil LPG

Technological Developments
Improvement in Piping Specifications - API 5L- X70 grades pipelines allows reduction in thickness of pipeline/ number of pump stations Intelligent Pigging - To ascertain integrity of pipeline without disrupting operations Horizontal Directional Drilling Easy to cross major rivers; Crossing highways, Railways etc. without causing traffic obstructions Supervisory Control and Data Acquisition System - SCADA applications allows better control and operation of pipeline system with less human intervention requirements Leak Detection System

Modewise Transportation-Tonne-Km Basis

India
Coastal 22%

Pipeline 48%
Coastal 22%

USA
Rail Road 3% 4%

Road 15% Rail 15%

Pipeline 71%

(Source: PPAC 2010-11)

(Source : Association of Oil Pipelines, USA)

IOC - Projects under Implementation

S. No. 1. 2. 3. 4. 5. Projects Description Hook-up of Tikrikalan Terminal with MJPL Addl. Tanks & blending facility at Vadinar Integrated Crude Handling Facilities at Paradip Paradip- Raipur-Ranchi Pipeline Kolkata ATF Pipeline Length (km) 8 70 1065 28 Cap. (MMTPA) 3.0 5.0 0.13 Cost (Rs. Cr.) 59 267 1492 1793 45

6.
7. 8. 9. 10. 11. 12. 13.

Guwahati ATF Pipeline

Debottlenecking of SMPL Cauvery Basin Refinery-Trichy Pipeline Paradip-Haldia-Durgapur LPG PIpeline Aug. of Paradip-Haldia-Barauni Pipeline Hook up of Jasidih ToP with HBPL Aug of Panipat-Rewari Pipeline Branch Pipeline to Motihari and Baitalpur Total

35
767 114 710 64 275 3136

0.07
21 to 25 0.4 0.5/0.85 11.0 to 15.2 1.5 to 2.1 1.5 19.75

44
1584 98 913 586 14.2 5.94 276 7177.14

Product Pipelines Bridging the Gap

S. No. 1. Pipeline Name Hook-up of Tikrikalan terminal with Mathura - Jalandar PL Oil Company IOC Length (km) 8 Capacity (MMTPA) 3.0 Capex (Rs. Cr.) 59

2.
3. 4. 5. 6.

Branch PL from Viramgam to Kandla off Koyali-Sanganer PL

Augmentation of Trichy-Madurai PL Chennai-

IOC
IOC IOC IOC IOC

231
1200 600 275

0.5
0.5 3.7 2.5 1.2

349
46 2000 660 305

Paradip - Vizag-RajamundaryVijaiwada-Cherllapally PL Koyali-Akolner PL Branch pipeline to RaxualBaitalpur (ex-Patna on Barauni Kanpur PL)

7.
8

Aonla-Banthra extension Mathura - Tundla PL

of

IOC
IOC

500
1068

1.0
5.0

200
1793

Paradip - Sambalpur Raipur Ranchi PL

Product Pipelines Bridging the Gap

S. No. 9 Pipeline Name Branch line to Una on PanipatAmbala-Jalandar PL Oil Company IOC Length (km) 70 Capacity (MMMTPA) 0.7 Capex (Rs. Cr.) 101

10
11 12 13. 14. 15. 16. 17. 18.

Cauvery Basin Refinery/ Narimanam-Trichy PL

Bina-Kota PL Kota-Jobner PL Kota-Piyala PL(Augmentation) Ramanmandi-Bahadurgarh PL Ramanmandi-Bhatinda PL Bahadurgarh-Tikri Kalan PL Rewari-Kanpur PL Awa-Salawas PL Total

IOC
BPC BPC BPC HPC HPC HPC HPC HPC

114
258 210 200 270 30 13 450 100 5597

0.4
2.8 1.7 1.0 4.7 1.4 1.1 3.0 0.8 34.9

98
1398 200 400 61 60 1100 200 9030

Present Industry Scenario: Critical Aspects

National Oil Companies facing acute fiscal challenges due to prevailing norms on product pricing and fund crunch for their expansion

Statutory Clearances have become more complex; Projects are getting delayed on this account

Land Acquisition Problems

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