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 MMTOE Primary energy Consumption-Global India at 433 MMTOE is the 5th largest consumer of Primary Energy Source: BP Statistical review 2009 India’s Energy Basket 2009 World World Energy Consumption 11299 MMTOE India Energy Consumption 433 MMTOE Source: BP Statistical review 2009 MMTOE 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 Oil Balance Brazil Russian Fed. India China US 1% 5.6% 0.4% 1.1% 2.1% Production as % of total world 2.6% 12.9% 0.9% 4.9% 8.5% Consumption as % of total world 3.2% 3.2% 3.8% 10.4% 21.7% Import dependence 2009 19% ---- 76% 53% 61% ---- 93% 90% 58% Attributes Reserves as % of total world Projected Import dependence 2035 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 56,348 16987 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 Length ( KM) 14000 13459 12000 9554 10000 7120 8000 6282 KM 6000 4000 2000 2061 2824 2985 3803 3903 510 0 1965 1975 1985 1995 2000 2002 2004 2006 2008 2011 YEAR Product Pipelines in India Growth of Pipeline Capacity 80 Capacity(MMT) 76.23 70 62.59 60 61.72 54.99 50 33.99 40 MMT 26.49 30 20 11.02 15.31 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 about 30-50% of the railway freight and 4 to 5 times cheaper than road transportation Lower transit losses PL- 0.05% Max., Railway- 0.25%, Road- 0.5% Energy efficient Railway mode consumes 3-4 times and road mode about 20 times more energy than Pipeline mode Safety and Reliability minimum disruptions Environment friendly 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 6401 1939 2774 1691 654 - - 13459 Crude Oil 4366 935 - - 1193 676 667 7837 Total 10767 2874 2774 676 667 21296 1691 1847.3 Capacity (MMTPA) Product 34.86 10.35 25.72 3.6 1.70 - - 76.23 Crude 40.40 Oil 6.0 - - 8.40 43.84 7.5 106.1 Total 75.26 16.35 25.72 3.6 10.1 43.84 7.5 182.4 #Includes Petronet Cochin-Coimbatore-Karur Product pipeline Petronet Mangalore-Hassan-Bangalore Product Pipeline ### Source: PPAC ##Includes IOCL’s Existing Liquid Pipeline Network Jalandhar Bhatinda Sangrur Panipat Ambala Roorkee Najibabad Meerut Tinsukia Rewari Delhi Mathura Sanganer Tundla Ajmer Bongaigaon Digboi Chaksu Bharatpur Lucknow Jodhpur Siliguri Guwahati Barauni Kanpur Kot Chittaurgarh Sidhpur Ahmedabad Rajbandh Mundra Navagam Kandla Mourigram Ratlam Koyali 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 Bangalor BangaloreeAFS Sankari Chennai Chennai AFS Asanur CBR Trichy Madurai LEGEND Product Crude Oil Gas Refinery BPCL’s Existing Liquid Pipeline Network Jalandhar Ambala Bhatinda Panipat Sanganer Jodhpur Sidhpur Tinsukia Delhi Bijwasan Piyala Bharatpur Lucknow Barauni Kanpur Kota Bongaigaon Siliguri Guwahati Digboi Bina Koyali Indore Haldia 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 LEGEND Coimbatore Karoor Chennai Product Crude Oil Refinery Kochi HPCL’s Existing Liquid Pipeline Network Jalandhar Ambala Bhatinda Panipat Delhi Bahadurgarh Piyala Sanganer Mathura Bharatpur Lucknow Jodhpur Barauni Kanpur Bongaigaon Siliguri Guwahati Digboi Sidhpur Bina Mundra Indore Haldia Mumbai As on 01.03.2011 Pipeline Product Length (km) 2774 Paradip Pune Solapur Hyderabad Capacity (MMTPA) 25.72 Visakhapatanam Vijaywada LEGEND Chennai Mangalore Bangalore Product Crude Oil Refinery Kochi Other’s Existing Pipeline Network Jalandhar Ambala Bhatinda Panipat Sanganer Barmer Bharatpur Loni Delhi Bijwasan Piyala Mathura Tinsukia Siliguri Lucknow Barauni Kanpur Bongaigaon Digboi NRL Sidhpur Bina Kalol Koyali Salaya Uran Indore Solapur 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 Haldia Ankaleshwar Mumbai Paradip Hyderabad Visakhapatanam Vijaywada Mangalore LEGEND Chennai Bangalore Kochi LPG (GAIL) Crude Oil (OIL) Product (OIL) Crude Oil (Cairn) Crude Oil (ONGC) Crude Oil Transportation Pipelines System: Crude Oil Transportation OIL FIELDS CRUDE OIL IN SHIPS FLOATING HOSES SPM SYSTEM OFFSHORE LINE GATHERING STATION SHORE TANKAGES UNDER BUOY HOSES PUMPING UNITS PIPELINE END MANIFOLD OFFSHORE / ONSHORE PIPELINE CROSS COUNTRY 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) MATHURA 8.0 (160,000) JAMNAGAR RIL-33.0 + 29.0 (660,000+580,000) ESSAR-10.5(210,000) Koyali 13.7(274,000) BARAUNI 6.0 (120,000) HALDIA 7.5(150,000) BINA 6.0(120,000) PARADEEP 15.0(300,000) MUMBAI BPC-12.0(240,000) HPC-6.5(110,000) Refining Capacity: MANGLORE IOCL – 65.7 MMTPA out of – 195.4 11.8(236,000) MMTPA KOCHI 9.5(190,000) DIGBOI 0.65(13,000 ) NUMALIGARH GUWAHATI 3.0(60,000) 1.0(20,000) VISAKH 8.3(166,000) LEGEND Existing IOC TATIPAKA 0.08 (1740) CHENNAI 10.5(210,000) Kuddalore 6 MMTPA Subsidiaries of IOC Others New NARIMANAM 1.0(20,000) Figures in bracket are in terms of BPD IndianOil Jetty Salaya-Mathura crude oil pipeline PANIPAT REWARI CHAKSU RAMSAR MATHURA SENDRA RAJOLA KOT Section SALAYA KOYALI Dia (inch) Length (km) Off-shore Line 42 13.7 Onshore Line 42 11.4 Salaya-Viramgam 28 435 Viramgam-Koyali 28 148 Viramgam-Chaksu 24 716 Chaksu-Mathura 24 197 Chaksu-Panipat 24 349 32 Haldia-Barauni crude oil pipeline Section Dia (inch) Length (km) Paradip off shore line 48 20 Paradip-Haldia 30 328 Haldia-Bolpur-Barauni 18 935 48/36 19 Haldia Docklines BRPL BONGAIGAON BARAUNI BOLPUR HALDIA Barauni Bolpur Haldi a PARADIP Paradip 33 Petroleum Product Transportation Pipelines System: Product Transportation REFINED PRODUCT FROM REFINERIES IMPORTED / OTHER PRODUCT IN SHIP/OIL JETTY REFINERY’s PRODUCT TANKAGE TANKAGES PUMPING STATION PUMPING CUM DELIVERY STATIONS OR DELIVERY STATION DELIVERY TERMINAL Guwahati-Siliguri product pipeline SILIGURI HASIMAR A MADARIHAT Tinsukia BONGAIGAON BETKUCH I GUWAHATI REFINERY Digboi Bongaigaon Siligur i Guwahati Nahorkatiya Numaligarh Section Dia (inch) Length (km) Guwahati-Bongaigaon 8 162 Bongaigaon-Madarihat 8 128 Madarihat-Siliguri 8 145 36 Barauni-Kanpur product pipeline KANPUR LUCKNOW MUGALSARAI BARAUNI REFINERY PATNA ALLAHABAD BARAUNI Lucknow Kanpur Dia (inch) Length (km) Barauni-Patna (New) 20 110 Patna-Mugalsarai 12 209 Mugalsarai-Allahabad 12 161 Allahabad-Kanpur 12 196 Branch line to Lucknow 12 69 Section Mugalsarai Allahabad Bolpur Haldia 37 Product pipelines ex-Haldia refinery Dia (inch) Length (km) Haldia-Mourigram 12 117 Mourigram-Rajbandh 12 152 Budge Budge branch 12 8 Haldia-Barauni 12 525 Section BARAUNI ASANSOL RAJBANDH MOURIGRAM BUDGE BUDGE Barauni HALDIA Bolpur Asansol Rajbandh HALDIA REFINERY Mourigram Budge Budge Haldia 38 Product pipelines ex-Koyali refinery Koyali-Ahemedabad 8 Length (km) 116 Koyali-Sanganer 18 763 Bareja–Navagam 10 4 Kot-Salawas 10 111 Baghsuri–Ajmer 8 20 Lasariya-Chittaurgarh 12 158 Koyali-Dahej 14 103 Amod-Hazira 12 94 Koyali-Ratlam 16 265 Section Dia (inch) SANGANER AJMER JODHPUR KOT CHITTAURGARH SIDHPUR Jodhpur Sanganer AHMEDABAD VIRAMGAM BAREJA Kot Sidhpur Ahmedabad Navagam Koyali DAHEJ RATLAM NAVAGAM KOYALI REFINERY DAHEJ HAZIR A HAZIRA 39 Product pipelines ex-Mathura refinery Jalandhar Ambala Bhatinda Najibabad Panipa Meerut Delhi t Rewari Mathur a Tundla PANIPAT PANIPAT REFINERY DELHI Bharatpur Section Dia (inch) Length (km) Mathura-Delhi 16 147 Mathura-Tundla 16 56 Mathura-Bharatpur 8 21 Bijwasan-Panipat Naphtha 10 111 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 AMBALA NAJIBABAD NABHA ROORKEE SANGRUR BHATINDA PANIPAT MEERUT Kot Sidhpu r Section Dia (inch) Length (km) 14/12 267 K’kshetra–Roorkee–Najibabad 10 167 Panipat-Delhi 14 112 Sonepat-Meerut 10 70 Panipat-Bhatinda 14 219 Panipat-Rewari 12 155 Panipat-Jalandhar LPG 10 274 Panipat-Ambala-Jalandhar DELHI REWARI 41 Pipelines ex-Manali refinery & other pipelines in Southern Region Bangalore Bangalore AFS Chennai Chennai AFS Sankari Section Dia (inch) Length (km) Chennai -Asanur 14 256 Asanur–Madurai 10 270 Asanur–Sankari 12 157 14/12 290 Bangalore ATF 8 33 Chennai ATF Narimanam-Nagpattinam 8 95 18 7 Asanur Nagapattinam Trichy Narimanam Madurai Chennai -Bangalore 42 Digboi-Tinsukia product pipeline TINSUKIA DIGBOI Tinsukia Nahorkatiya Siliguri Digboi DIGBOI REFINERY Bongaigaon Numaligar Guwahati h Section (Under Assam Oil Division) Dia (inch) Length (km) Digboi-Tinsukia (Black Oil) 6 39 Digboi-Tinsukia (White Oil) 8 36 43 Mode wise transportation of Crude Oil and Petroleum Products. Typical Mode Wise Transportation Crude Oil & Petroleum Products- Industry INDIA Coastal 18% USA Rail 16% Pipelines 52% * Source : PPAC Road 14% ** 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 LNG Import Terminals Pipelines Company KMs % Share GAIL 6778 61 GSPL 1659 RGTIL MMT % Share 10 73 15 PLL * Dahej 1365 12 Shell 3.75 27 IOC 132 1 Total 13.75 100 Others 1246 11 Total 11180 100 1MMT = 3.62 MMSCMD Company CGD * IOC has a contract for 2.25 MMT at Dahej Company Cities (no.) % Share GGCL 3 23 GSPC Gas 8 20 IGL 2 16 MGL 2 12 GAIL Gas 5 9 GGL* 2 0.7 15 other 27 19.3 Entities * IOC’s JV with GAIL 50 Infrastructure - Existing & Future SRINAGAR LNG Terminal jAMMU Existing NANGAL Upcoming BHATINDA DELHI AURAIYA LUCKNOW MATHANIA AGRA KANPUR GWALIOR BHILWARA KOTA RAJKOT MUNDRA 6.5 mmtpa MEHSANA UJJAIN Existing DISPUR JAGDISHPUR BARMER DAHEJ 10 mmtpa* Transmission Pipelines BAREILLY GURGAUN Upcoming GAIL’s Planned Pipeline RGTIL’s East West Pipeline RGTIL’s Planned Pipeline Pipelines at EoI stage/ under bidding by PNGRB PATNA PHOOLPUR JHANSI VIJAYPUR VARANASI GAYA AGARTALA BOKARO BHOPAL AHMEDABAD KOLKATA BHARUCH HAZIRA 2.5 mmtpa RAIPUR JALGAON SURAT CUTTACK PARADIP Existing BHUBANESHWAR PUNE SOLAPUR Planned KRISHNAPATNAM RAJAMUNDRY KAKINADA (MALLAVARAM) HYDERABAD KOLHAPUR VIJAYAWADA GOA NELLORE HASAN BANGLORE CHENNAI TIRUCHCHIRAPALLI KANJIKKOD COIMBTORE KOCHI 5 mmtpa City Gas/ CNG DAMRA NAGPUR MUMBAI DABHOL 5 mmtpa BARODA TUTICORIN ENNORE 5 mmtpa Pipeline GAIL RGTIL Others Total Existing 6778 1365 3037 11180 Future (by 2014) 5573 3030 Total 12351 4395 8983 12020 17586 28766 • 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 5.357 5 4 3 2 1 0.374 0.34 0.709 0 India USA China Pakistan 52 Demand - Supply Scenario (Projected) All figures in MMSCMD Projected 2010-11 2011-12 2012-13 2016-17 2020-21 Natural Gas Demand 176 208 244 335 432 Domestic Supply 142 150 187 202 174 RLNG Terminal capacity 44 53 70 118 132 Deficit 10 -5 13 -15 -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 – Jan’11) Domestic Gas RLNG Company Qty % Share ONGC + OIL 56 44 RIL 56 44 Others 15 12 IOC 0 0 Total 127 100 Quantities in MMSCMD Gas Market Company Qty % Share Company Qty % Share PLL 30 94 GAIL 83 52 IOC 8.2 26 RIL 56 35 GAIL 15.8 52 9.3 6 BPCL 2.5 8 GSPC + Others IOC 8.2 5.5 BPCL 2.5 1.5 Total 159 100 GSPC+ Others 1.5 8 Shell 2 6 Total 32 100 1 MMSCMD = 0.33 mtoe Source : PPAC 54 Existing and upcoming LNG Terminals in India Location Company Capacity in MMTPA Status Dahej Petronet LNG LTD (PLL) 10 Capacity expansion to 15 MMTPA by 2013 Hazira SHELL 2.5 Expansion to 5.0 by 2015 Dhabhol RGPPL 2.5 Start up by 2012 Kochi Petronet LNG LTD (PLL) 2.5 Commissioning by 2012 Ennore IOCL 5.0 Commissioning by 2015 Mundra M/s Adani 6.0 Commissioning by 2015 Dhamra, Orissa IOCL & Others 5.0 Commissioning by 2016 Mangalore ONGC Ltd 2.5 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. THANK YOU