IOC lines up three major pipeline projects in TN

Indian Oil Corporation (IOC) has lined up three key projects in Tamil Nadu to transport petroleum products through pipelines. The biggest one of the three, in terms of investment and length, is to start providing benefits on August 15 this year.

IOC's director (Marketing), N G Kannan, told mediapersons today that the company's 683 kilometre Chennai-Trichy-Madurai pipeline would start producing benefits by August 15. The products sent from Chennai would reach Madurai on that day, said Kannan. This pipeline is expected to transport 1.8 million metric kilolitres of mainly petrol, diesel and kerosene a year.

At present, 60 per cent to 70 per cent of the petroleum products transported in the Chennai to Madurai stretch is done using the railways. Kannan said that in the long run pipelines would be much cheaper. The Chennai-Trichy-Madurai pipeline has been built at a cost of Rs 409 crore.

IOC plans to build a 90-kilometre pipeline that would link the refinery of its subsidiary, Chennai Petroleum, located in North Chennai with the airport that is located outside the southern boundary of the city.

This pipeline would be dedicated to carrying aviation turbine fuel (ATF), said Kannan. This Rs 50 crore pipeline would, however, not go directly from the refinery to the airport. It would be routed through Sriperumbudur, which is located outside Chennai.

The feasibility report for the project is being prepared, said Kannan. The aim is to eventually use the pipeline to supply ATF directly to the aircraft as is being done in Mumbai and New Delhi airports.

Another pipeline project that is being considered by IOC is a 290-kilometre one that would link Chennai to Bangalore at a cost of Rs 250 crore.

Kannan said that the company would take a final decision on this project after it finishes negotiations with the railways. If the railways offers a discount of over 25 per cent on its existing freight rates, the pipeline project would not be viable, he added.

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In the pipeline

• 683 km Chennai-Trichy-Madurai pipeline would start producing benefits by Aug 15
• A 90-km pipeline to link the refinery of Chennai Petroleum with the airport located outside the southern boundary of the city
• Another project that is being considered by IOC is a 290-km pipeline that would link Chennai to Bangalore at a cost of Rs 250 crore