IOCL, Gujarat Chemical Port naphtha pipeline soon

PETROLEUM COMPANIES EXPLORE NEW FRONTIERS

Indian Oil Corporation Limited (IOCL) plans to export surplus naphtha from its 13.7 million tonne per annum Gujarat Refinery through Gujarat Chemicals Port Terminal Company Limited (GCPTCL) terminal located at Dahej in South Gujarat.

Speaking to Business Standard A M Uplenchwar, director of pipelines, IOCL said, the pipeline connecting Gujarat Refinery to Dahej GCPTCL will soon be completed.

However, with limited avenues to dispose off naphtha in the domestic market, the product pipeline is expected to be used for transferring the surplus naphtha to Dahej GCPTCL terminal.

At present Gujarat refinery transports its surplus naphtha through tankers and train to Kandla port and then exports it. With the new arrangement on commissioning of pipeline, IOCL's flagship refinery will have major cost advantage with the commissioning of the pipeline.

The Gujarat refinery to Dahej pipeline project consists of laying an 14-inch diameter, 112 km long 2.6 MT per annum capacity product pipeline from Koyali near Baroda to the proposed Dahej terminal.

The approved cost of the project is Rs 90.50 crore. The pipeline will provide for an assured means of evacuation of surplus products from land-locked Koyali refinery for further coastal movement and export.

The pipeline is expected to be commissioned during the middle of the current year.

Talking about Gujarat operations Uplenchwar added, "We are undertaking Mundra-Kandla crude oil pipeline and conversion of Kandla-Panipat section of Kandla-Bhatinda pipeline to crude oil service for Panipat refinery expansion project." The company will be investing Rs 305.60 crore for the project.

The Mundra-Kandla-Bhatinda project will consist of single point mooring (SPM) facilities and will be associated with offshore and onshore pipeline of Gujarat Adani Port for handling additional crude oil for Panipat refinery expansion project, thus taking the pipeline to Mundra crude oil terminal.

Along with this, it will also construct tank farm of eight storage tanks with a crude oil storage capacity of 60,000 kilolitres at Mundra and laying 73 km pipeline from Mundra to Churwa near Gandhidham.

However, he added that after the conversion of Kandla-Bhatinda pipeline, the company will be saving Rs 1,500 crore to 1,600 crore in next two years.

Uplenchwar further said, "To supply additional three million tonne per anum of crude oil for 15 MTPA Panipat refinery expansion, the company will augment the Mundra-Panipat crude oil pipeline by three million tonne - from 6 to 9 MMTPA."

The project will consist of laying a 20 km long loopline and adding pumping units at Mundra, Kot, Sanganer and Rewari. The company will be investing Rs 204.74 crore for the project which will be synchronised after commissioning Panipat refinery expansion to 15 MMTPA, Uplenchwar said.

While in Gujarat the pipeline division is undertaking a major project for laying a 274 km Koyali-Ratlam product pipeline at a cost of Rs 323 crore. IndianOil expects to ensure cost effective and reliable transportation form its Koyali unit to central India and north-west Utter Pradesh.

It is aiming at strengthening its product position capability in central India after commissioning the pipeline in December 2006.

Amongst other projects, the company will construct a 160 km long pipeline from Lasariya on Sidhpur-Sanganer product pipeline to Chittaurgarh and will also set up depot facilities with an investment of Rs 127.68 crore. The project is anticipated to be completed by August 2006.

IndianOil is also executing the Paradip Haldia crude oil pipeline project at a cost of Rs 1178 crore in the eastern part of India. The project is likely to b completed in May 2006. The company is also planning to lay a petroleum product pipeline from Chennai to Bangalore in the financial year 2005-06.