S Ganguly

Indian Oil Corporation Limited

Workshop on Transportation of OIL & GAS through Pipelines June 15-18, 2011

Presentation Structure
       India : Energy scene Growth of Pipelines in India Advantages of Pipeline Transportation Pipelines Infrastructure in India Mode wise transportation Gas Pipelines in India Future outlook: Pipelines in India

PIPELINES- AN OVERVIEW
Oil Industry in India IOCL- An Overview

India : Energy Scene

Primary energy Consumption-Global

India at 433 MMTOE is the 5th largest consumer of Primary Energy

Source: BP Statistical review 2009

MMTOE

India s Energy Basket 2009

World World Energy Consumption 11299 MMTOE India Energy Consumption 433 MMTOE

Source: BP Statistical review 2009

Country Wise Oil Consumption

India 4th largest consumer of Oil Oil Consumption in India increased at CAGR of 4% (1998-2008) against World CAGR of 1.4% As on March 2008 Source: BP Statistical review 2009

MMTOE

Oil Balance
Attributes Reserves as % of total world Production as % of total world Consumption as % of total world Import dependence 2009 Projected Import dependence 2035 Brazil 1% 2.6% 3.2% Russian Fed. 5.6% 12.9% 3.2% India 0.4% 0.9% 3.8% China 1.1% 4.9% 10.4% US 2.1% 8.5% 21.7%

19%

----

76%

53%

61%

----

93%

90%

58%

India placed most vulnerably among basic countries Import dependency expected to rise beyond 90% levels 7
Source: WEO, 2010

Indian Domestic Consumption Scenario: 2010-11

195883

212870

144350

16987

56,348

Total Production (TMT)

Imported product (TMT)

Production + Import (TMT)

Exported product (TMT)

Domestic Consumption (TMT)

Source: Petroleum & Planning Analysis Cell

Refining scenario in India in 2010-11:

Processing of Imported Vs. Indigenous crude
Installed Refining Capacity (as on 31.3.11): 193398 TMTPA

33381

163132

Imported Crude-Refined (TMT)

Indigenous Crude-Refined (TMT)

Source: Petroleum & Planning Analysis Cell

Energy Outlook
For India, Sourcing & Positioning of Energy remains a challenge ........      With 16% of Global Population 0.4% of World s Petroleum Reserve 10% of World s Coal Reserves 8-10% GDP Growth Target 4-4.5% CAGR in energy demand

Growth of Pipelines in India.

Growth of Pipelines in India

The first crude oil pipeline in India was laid from Digboi oil fields to Digboi refinery. 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. The first cross country product pipeline was laid during 1962-64 to transport products from Guwahati Refinery to Siliguri. Realizing unique advantages of oil transportation through pipelines a number of product and crude oil pipelines were laid in the 60 s, 70 s and 80 s, including sub-sea crude oil pipelines

Growth of Pipelines in India

The pipelines laid during the 60 s 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. India today has over 33,000 km of major crude oil, product and Gas pipelines out of which IOCL owns & operates about 11,000 km of Pipelines.

Pipeline Transportation of Liquid Petroleum: Present scenario in India

Oil Industry in India has now almost 5 decades of experience in transportation of crude oil and finished petroleum products The crude oil pipelines transport waxy indigenous crude as well as low sulphur & high sulphur imported crude The finished product pipelines transport HSD, MS, SKO, Naphtha, ATF, LPG etc. in multi-product / dedicated pipelines

Product Pipelines in India

Growth of Pipeline Length
14000 12000 10000 8000 6282
KM 6000
Length ( KM)

13459 9554 7120 3803 3903 2061 2824 2985 510 1965 1975 1985 1995 2000 2002 2004 2006 2008 2011
YEAR

4000 2000 0

Product Pipelines in India

Growth of Pipeline Capacity
80 70 60 61.72 50 40
MMT
Capacity(MMT)

76.23 62.59 54.99

33.99 26.49 15.31 11.02

30 20

10 1.82 7.32 0 1965 1975 1985 1995 2000 2002 2004 2006 2008 2011
YEAR

Advantages of Pipeline Transportation

Advantages of Pipeline Transportation

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

Advantages of Pipeline Transportation

 Flexibility  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.

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., Railway- 0.25%, Road- 0.5%

Railway mode consumes 3-4 times and road mode about 20 times more energy than Pipeline mode

minimum disruptions

3-4 times lesser Carbon emissions than Railway mode

Pipeline Infrastructure in India

(Crude & Petroleum Products)

Existing Liquid Pipelines: Industry

As on 01.3.2011

IOCL

BPCL#

HPCL##

GAIL

OIL

ONGC
###

Cairn

Total Industry

Length (Kms.)
Product Crude Oil 6401 4366 1939 935 2874 2774 2774 1691 654 1193 676 676 667 667 13459 7837 21296

Total 10767

1691 1847.3

Capacity (MMTPA)
Product 34.86 Crude 40.40 Oil Total 75.26
#Includes ##Includes

10.35 6.0 16.35

25.72 25.72

3.6 3.6

1.70 8.40 10.1

43.84 43.84

7.5 7.5

76.23 106.1 182.4

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

IOCL s Existing Liquid Pipeline Network

Jalandhar Bhatinda Sangrur Panipat Ambala Roorkee Najibabad

Meerut Tinsukia Rewari Delhi Mathura Sanganer Tundla Ajmer Bongaigaon Digboi Lucknow Chaksu Bharatpur Jodhpur Siliguri Guwahati Barauni Kanpur Kot Chittaurgarh Sidhpur Ahmedabad Rajbandh Mundra Navagam Kandla Mourigram Koyali Ratlam Vadinar Dahej Haldia Hazira Paradip As on 01.03.2011 Pipeline Product Crude Total Length (km) 6401 4366 10767 Capacity (MMTPA) 34.86 40.40 75.26 LEGEND Bangalor BangaloreeAFS Sankari Chennai Chennai AFS Asanur CBR Trichy Product Crude Oil Gas Refinery

Madurai

BPCL s Existing Liquid Pipeline Network

Jalandhar Bhatinda Panipat Sanganer Jodhpur Sidhpur Bharatpur Kota Bina Koyali Dahej Manmad Paradip As on 01.03.2011 Pipeline Product Crude Total Length (km) 1939 935 2874 Capacity (MMTPA) 10.35 6.00 16.35 Mumbai Indore Delhi Bijwasan Piyala Lucknow Barauni Kanpur Tinsukia Bongaigaon Siliguri Guwahati Ambala

Digboi

Haldia

LEGEND Chennai Product Crude Oil Refinery Kochi

Coimbatore

Karoor

HPCL s Existing Liquid Pipeline Network

Jalandhar Bhatinda Panipat Delhi Bahadurgarh Piyala Sanganer Mathura Bharatpur Lucknow Jodhpur Barauni Kanpur Sidhpur Mundra Indore Bina Ambala

Bongaigaon Siliguri Guwahati

Digboi

Haldia Paradip Visakhapatanam LEGEND Chennai Product Crude Oil Refinery

Mumbai As on 01.03.2011 Pipeline Product Length (km) 2774 Capacity (MMTPA) 25.72 Mangalore Pune Solapur Hyderabad
Vijaywada

Bangalore

Kochi

Other s Existing Pipeline Network

Jalandhar Bhatinda Panipat Sanganer Barmer Sidhpur Kalol Koyali Salaya Uran Indore Ankaleshwar Mumbai Solapur
Hyderabad

Ambala

Loni Delhi Bijwasan Piyala Mathura Lucknow Barauni Kanpur Bina

Tinsukia Siliguri Bongaigaon

Bharatpur

Digboi NRL

Haldia Paradip Visakhapatanam LEGEND Chennai LPG (GAIL) Crude Oil (OIL) Product (OIL) Crude Oil (Cairn) Crude Oil (ONGC)

As on 01.03.2011 Pipeline Length (km) GAIL Product 1691 OIL Product 654 ONGC Crude 676.08 OIL Crude 1193 Cairn Crude 667 Capacity (MMTPA) 3.60 1.70 43.84 8.4 7.5

Vijaywada

Mangalore

Bangalore

Kochi

Crude Oil Transportation

Pipelines System: Crude Oil Transportation

CRUDE OIL IN SHIPS FLOATING HOSES SPM SYSTEM UNDER BUOY HOSES OFFSHORE LINE

OIL FIELDS

GATHERING STATION

SHORE TANKAGES

PUMPING UNITS PIPELINE END MANIFOLD CROSS COUNTRY PIPELINE

OFFSHORE / ONSHORE PIPELINE

REFINERY TANKAGE

Refineries Overview
IndianOil Group owns 10 out of 20 refineries in India
BHATINDA 9.0 (180,000) PANIPAT 15.0 (300,000) BONGAIGAON 2.35(47,000) DIGBOI 0.65(13,000 ) NUMALIGARH GUWAHATI 3.0(60,000) 1.0(20,000)

MATHURA 8.0 (160,000)

BARAUNI 6.0 (120,000)

JAMNAGAR RIL-33.0 + 29.0 Koyali (660,000+580,000) 13.7(274,000) ESSAR-10.5(210,000) MUMBAI BPC-12.0(240,000) HPC-6.5(110,000)

BINA 6.0(120,000)

HALDIA 7.5(150,000)

PARADEEP 15.0(300,000)
VISAKH 8.3(166,000)

LEGEND Existing IOC

Subsidiaries of IOC

Refining Capacity: MANGLORE IOCL 65.7 MMTPA out of 195.4 11.8(236,000) MMTPA
KOCHI 9.5(190,000)

TATIPAKA 0.08 (1740) CHENNAI 10.5(210,000) Kuddalore 6 MMTPA NARIMANAM 1.0(20,000)

Others New

Figures in bracket are in terms of BPD

IndianOil

Jetty

Salaya-Mathura crude oil pipeline

PANIPAT REWARI CHAKSU MATHURA

RAMSAR SENDRA RAJOLA KOT

Section Off-shore Line Onshore Line Salaya-Viramgam

SALAYA KOYALI

Dia (inch) 42 42 28 28 24 24 24

Length (km) 13.7 11.4 435 148 716 197 349

Viramgam-Koyali Viramgam-Chaksu Chaksu-Mathura Chaksu-Panipat

32

Haldia-Barauni crude oil pipeline

Section Paradip off shore line Paradip-Haldia Haldia-Bolpur-Barauni Haldia Docklines Dia (inch) 48 30 18 48/36 Length (km) 20 328 935 19 BARAUNI
BRPL BONGAIGAON

BOLPUR

Barauni

HALDIA

Bolpur

Haldi a PARADIP Paradip

33

Petroleum Product Transportation

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

Guwahati-Siliguri product pipeline

SILIGURI

HASIMAR A MADARIHAT

BONGAIGAON BETKUCH I

Tinsukia Digboi Bongaigaon Siligur i Guwahati Nahorkatiya Numaligarh

GUWAHATI REFINERY

Section Guwahati-Bongaigaon Bongaigaon-Madarihat Madarihat-Siliguri

Dia (inch) 8 8 8

Length (km) 162 128 145 36

Barauni-Kanpur product pipeline

KANPUR LUCKNOW

MUGALSARAI ALLAHABAD

PATNA

BARAUNI REFINERY

BARAUNI

Lucknow Kanpur
Mugalsarai

Section Barauni-Patna (New)

Dia (inch) 20 12 12 12 12

Length (km)

Allahabad

110 209 161 196 69

Bolpur

Patna-Mugalsarai Mugalsarai-Allahabad Allahabad-Kanpur

Haldia

Branch line to Lucknow

37

Product pipelines ex-Haldia refinery

Section
Haldia-Mourigram Mourigram-Rajbandh Budge Budge branch Haldia-Barauni

Dia (inch)
12 12 12 12

Length (km) 117 152 8 525

BARAUNI

ASANSOL

RAJBANDH
MOURIGRAM

BUDGE BUDGE
Barauni

HALDIA
Bolpur
Asansol Rajbandh

HALDIA REFINERY

Mourigram Budge Budge Haldia

38

Product pipelines ex-Koyali refinery

Section Koyali-Ahemedabad Koyali-Sanganer BarejaNavagam Kot-Salawas BaghsuriAjmer Lasariya-Chittaurgarh Koyali-Dahej Amod-Hazira Koyali-Ratlam Dia (inch) 8 18 10 10 8 12 14 12 16 Length (km) 116 763 4 111 20 158 103 94 265 JODHPUR KOT SIDHPUR Jodhpur Kot Sidhpur Ahmedabad Navagam Koyali DAHEJ HAZIR A Sanganer VIRAMGAM BAREJA NAVAGAM KOYALI REFINERY DAHEJ
HAZIRA CHITTAURGARH AJMER SANGANER

AHMEDABAD
RATLAM

39

Product pipelines ex-Mathura refinery

Jalandhar Ambala Bhatinda Najibabad Panipa Meerut Delhi t Rewari Mathur a Tundla Bharatpur

PANIPAT PANIPAT REFINERY DELHI

Section Mathura-Delhi Mathura-Tundla Mathura-Bharatpur Bijwasan-Panipat Naphtha

Dia (inch) 16 16 8 10

Length (km) 147 56 21 111

MATHURA

TUNDLA
BHARATPUR MATHURA REFINERY

40

Product pipelines ex-Panipat refinery

JALANDHAR Jalandhar Ambala Bhatinda Najibabad Panipat Meerut Delhi Rewar iSanganer Mathura Jodhpur Tundla Chaksu Beawar Kot Sidhpu r

AMBALA
NABHA SANGRUR BHATINDA ROORKEE

NAJIBABAD

PANIPAT
MEERUT

Section Panipat-Ambala-Jalandhar KkshetraRoorkeeNajibabad Panipat-Delhi Sonepat-Meerut Panipat-Bhatinda Panipat-Rewari Panipat-Jalandhar LPG

Dia (inch) 14/12 10 14 10 14 12 10

Length (km) 267 167 112 70 219 155 274 REWARI

DELHI

41

Pipelines ex-Manali refinery & other pipelines in Southern Region

Bangalore Bangalore AFS Chennai Chennai AFS Asanur

Sankari

Section Chennai -Asanur AsanurMadurai

Dia (inch) 14 10 12 14/12 8 8 18

Length (km) 256 270 157 290 33 95 7

Trichy

Nagapattinam Narimanam

AsanurSankari Chennai -Bangalore Bangalore ATF Chennai ATF Narimanam-Nagpattinam

Madurai

42

Digboi-Tinsukia product pipeline

TINSUKIA

Tinsukia Nahorkatiya Siliguri Bongaigaon Numaligar Guwahati h Digboi

DIGBOI

DIGBOI REFINERY

Section (Under Assam Oil Division) Digboi-Tinsukia (Black Oil) Digboi-Tinsukia (White Oil)

Dia (inch) 6 8

Length (km) 39 36
43

Mode wise transportation of Crude Oil and Petroleum Products.

Typical Mode Wise Transportation Crude Oil & Petroleum Products- Industry
INDIA
Coastal 18% Rail 16% Road 14%

USA

Pipelines 52%

* Source : PPAC

** Source : Association of Oil Pipelines,

http://www.aopl.org/pdf/Shift_Report_2008_FINAL1.pdf

Haulage MT-Km basis Dependence on road and rail infrastructure is putting severe strain on these infrastructures.

Inter-Modal Mix- Industry Vs. IOCL Petroleum products

Present Transport Modal-Mix - Industry Present Transport Modal-Mix - IOCL

6% 19% 43%

32%
Pipeline Coastal Rail Road

Capacity (MMT) basis

Inter-Modal Mix for Transportation of Crude Oil- Industry Vs. IOCL

Present Transport Modal-Mix - Industry

Present Transport Modal-Mix - IOCL

Capacity (MMT) basis

As in 2010-11

Gas Pipelines in India

Gas Transmission
Power / Fertilizer

Re-gasification

Liquefaction

Cryogenic Terminals Vessels Like Dahej Cryogenic Truck/ Rail transport Cryogenic Storage tanks End Users
49

Existing Gas Infrastructure in India

Pipelines
Company KMs % Share

LNG Import Terminals

Company MMT % Share

CGD
Company Cities (no.) % Share

GAIL GSPL RGTIL IOC Others Total

6778 1659 1365 132 1246 11180

61 15 12 1 11 100

PLL * Dahej Shell Total

10 3.75 13.75

73 27 100

GGCL GSPC Gas IGL MGL GAIL Gas GGL*

3 8 2 2 5 2

23 20 16 12 9 0.7

* IOC has a contract for 2.25 MMT at Dahej

1MMT = 3.62 MMSCMD

15 other 27 19.3 EntitiesIOC s JV with GAIL 50 * Total 49 100

Infrastructure - Existing & Future

SRINAGAR jAMMU

LNG Terminal Existing

NANGAL

Upcoming
BHATINDA DELHI

GURGAUN MATHANIA AGRA

BAREILLY AURAIYA LUCKNOW

JAGDISHPUR KANPUR

Transmission Pipelines
Existing
DISPUR PATNA

DAHEJ 10 mmtpa*
MUNDRA 6.5 mmtpa

BARMER BHILWARA GWALIOR

PHOOLPUR

KOTA
RAJKOT
MEHSANA UJJAIN
AHMEDABAD

JHANSI VIJAYPUR BHOPAL

VARANASI

GAYA

AGARTALA

BOKARO KOLKATA

Upcoming GAIL s Planned Pipeline RGTIL s East West Pipeline RGTIL s Planned Pipeline Pipelines at EoI stage/ under bidding by PNGRB

BHARUCH BARODA

CUTTACK
JALGAON

HAZIRA 2.5 mmtpa

RAIPUR NAGPUR

SURAT

DAMRA PARADIP BHUBANESHWAR

City Gas/ CNG

Existing Planned

MUMBAI

PUNE SOLAPUR
RAJAMUNDRY

KRISHNAPATNAM KAKINADA (MALLAVARAM)

DABHOL 5 mmtpa

KOLHAPUR GOA

HYDERABAD

VIJAYAWADA NELLORE HASAN

BANGLORE

Pipeline
ENNORE 5 mmtpa

GAIL 6778

RGTIL Others 1365 3037 8983 12020

Total 11180 17586 28766

CHENNAI

Existing

KANJIKKOD
COIMBTORE

TIRUCHCHIRAPALLI

Future (by 2014) 5573 3030 Total 12351 4395

KOCHI 5 mmtpa

TUTICORIN

Length in KM Others include GSPL, IOC, Assam Gas etc. Details * Dahej Expansion to 12.5 MMTPA by 2014

51

World and India - A comparison

Gas Pipeline Spread: (km / 100 sq. km.)
6 5 4 3 2 1 0 India USA China Pakistan 0.34 0.374 0.709 5.357

52

Demand - Supply Scenario (Projected)

All figures in MMSCMD

Projected
Natural Gas Demand Domestic Supply RLNG Terminal capacity Deficit

2010-11
176 142 44 10

2011-12 2012-13 2016-17 2020-21

208 150 53 -5 244 187 70 13 335 202 118 -15 432 174 132 -126

2010-11, 11-12 & 12-13 - Figs include firmed up RLNG Terminals 2016-17 & 2020-21 - Figs include RLNG Terminals in conceptual stage.
Source : MoPNG, Crisil Report & Internal Estimates
53

Gas Supply Scenario (Apr 10

Domestic Gas
Company Qty % Share Company

Jan 11)

RLNG
Qty % Share

Gas Market
Company Qty % Share

ONGC + OIL RIL

Others

56 56 15 0 127

44 44 12 0 100

PLL IOC
GAIL BPCL GSPC+ Others

30 8.2
15.8 2.5

94 26 52 8 8 6 100

GAIL RIL GSPC + Others IOC

83 56 9.3 8.2 2.5 159

52 35 6 5.5 1.5 100

IOC Total

1.5 2 32

BPCL Total

Quantities in MMSCMD
1 MMSCMD = 0.33 mtoe

Shell Total

Source : PPAC

54

Existing and upcoming LNG Terminals in India

Location Dahej Hazira Dhabhol Kochi Ennore Mundra Dhamra, Orissa Mangalore Company Petronet LNG LTD (PLL) SHELL RGPPL Petronet LNG LTD (PLL) IOCL M/s Adani IOCL & Others ONGC Ltd Capacity in MMTPA 10 2.5 2.5 2.5 5.0 6.0 5.0 2.5 Status Capacity expansion to 15 MMTPA by 2013 Expansion to 5.0 by 2015 Start up by 2012 Commissioning by 2012 Commissioning by 2015 Commissioning by 2015 Commissioning by 2016 Commissioning by 2016

Transnational Pipelines
Iran Pakistan India Gas Pipeline Planned as Joint project with Iran & Pakistan. Iran and Pakistan not allowing participation in pipeline project with in their territory. Around 2100 KM and $7 billion. Gas for India : 30 MMSCMD Unresolved issues with Iran & Pakistan - Mainly security of supplies Turkmenistan- Afganistan Pakistan India Gas Pipeline Approx 30 MMSCMD import for India. Mainly driven by ADB. No issue of security of supply as it is integrated project to be managed by international consortium. IOC as co lead partner is being considered finally by MoPNG Sub-Sea Pipeline from Middle East(Oman) to India 85 MMSCMD. At present at concept stage
56

Future outlook: Pipelines in India

Future Outlook for Pipelines in India

 India is a vast country endowed with quite a large area. It may be ideal to inter link its different corners by means of pipeline networks  With the growing demand of petroleum products & Gas throughout the country, establishment of Oil & Gas pipeline networks for petroleum transportation is the only alternative, leaving railways to cope with the enormous task of handling ever-increasing passenger and goods traffic.  Indian oil industry has identified a number of crude oil and product pipelines that can be taken up for implementation in future.

Future Outlook for Pipelines in India

 Growth potential of pipelines in India itself is immense. India is now 5th in terms of length of Oil & Gas pipelines after USA [588,376 km], Russian federation [235,145 km], Canada [113,025 km] , China [48,911 km] and India [32,476 km].
Source: EnergyTrack

As per Hydrocarbon Vision 2025, the transportation requirement for the petroleum products are projected to rise significantly in the years to come.

It is expected that the total length of Oil and Gas pipelines in India will double in next ten years.

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