Indian Oil Corporation, the state-owned oil marketing company, will cross a pipeline network of 10,000 km before the end of calendar 2008.
Indian Oil Corporation (IOC), the state-owned oil marketing company, will cross a pipeline network of 10,000 km before the end of calendar 2008. The company has a pipeline network of 9,700 km now and is about to operationalise its 330-km Paradip-Haldia pipeline.
Requesting anonymity, a source close to the development said, “We hope to reach the 10,000 mark soon considering the Paradip-Haldia crude pipeline will be commissioned before December 31.” Once the company reaches this mark, its total throughput capacity will hit 70 million tonne per annum (mtpa).
IOC is setting up the Paradip to Haldia pipeline to bring down the cost of transportation of crude oil to both Haldia and Barauni refineries. Currently, the crude oil is being supplied from the Haldia port in small consignments.
At Rs 1,420 crore, the pipeline is one of IOC’s most ambitious projects as it is expected to facilitate further expansion of refinery capacities in the eastern region.
The source said although the project was initiated in 2004, it faced delay due to initial hurdles. Later, the offshore single point mooring system faced problems.
“It is now ready and the pipeline is almost in place,” he said, adding that the pipeline will have a capacity of 11 mtpa.
The company, which had a pipeline network of 9,273 km at the start of this fiscal, plans to add 4,000 km before the end of the current Five-Year Plan, which ends in March 2012. “We are currently working on 13 different projects with a total investment of Rs 2,500-2,600 crore. The pipelines are an integral part of these 13 projects,” the source said.
The first of the projects was a small Bangalore ATF line pipeline which was commissioned in October 2008. The second was IOC’s first LPG pipeline from Panipat to Jalandhar. Spanning 275 km, it was commissioned in November. The third is the Panipat-Haldia pipeline.
Another major project is the augmentation of Mundra-Panipat on the west coast, which is expected to be operational by January end. The major product pipelines that IOC is currently working on are Chennai-Bangalore and Koyali-Ratlam. A dedicated 94-km pipeline is underway to transport aviation fuel from Chennai Petroleum Corporation’s refinery to Chennai airport.