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PFR Koyali-Ahmednagar Pipeline

The document discusses a pre-feasibility report for extending an existing petroleum product pipeline from Ahmednagar to Solapur, Maharashtra, India. It notes that most of Indian Oil Corporation's marketing depots in Maharashtra currently rely on other oil companies, and extending the pipeline would ensure a more reliable and cost-effective domestic supply. The proposed 230 km extension would transport products from Koyali Refinery to Solapur. Statutory clearances will be obtained and the pipeline is estimated to cost Rs. 471 Crore with construction taking 42 months. The extension is considered economically viable and would reduce logistics costs.

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Kalai Selvan
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228 views4 pages

PFR Koyali-Ahmednagar Pipeline

The document discusses a pre-feasibility report for extending an existing petroleum product pipeline from Ahmednagar to Solapur, Maharashtra, India. It notes that most of Indian Oil Corporation's marketing depots in Maharashtra currently rely on other oil companies, and extending the pipeline would ensure a more reliable and cost-effective domestic supply. The proposed 230 km extension would transport products from Koyali Refinery to Solapur. Statutory clearances will be obtained and the pipeline is estimated to cost Rs. 471 Crore with construction taking 42 months. The extension is considered economically viable and would reduce logistics costs.

Uploaded by

Kalai Selvan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PRE-FEASIBILITY REPORT OF EXTENSION OF KOYALI-

AHMEDNAGAR PRODUCT PIPELINE UPTO SOLAPUR

Introduction
IOC has 14 marketing locations in Maharashtra viz. Loni (Pune), Navaghar, Vashi,
Sewree, Wadala, JNPT, Manmad, Akola, Chandrapur, Akolner (Ahmednagar), Shirud
(Dhule), Solapur, Miraj and Khapri (Nagpur). Majority requirement of these depots are met
by sourcing products from other oil marketing companies (OMCs) like HPCL and BPCL,
both having refineries within the state.

The exchanges with other OMCs are not sufficient for meeting the total demand.
Therefore, remaining product requirement is met through rail/coastal movement from
IOCs refineries and stand-alone refineries of RIL and Essar, which does not ensure reliable
and cost-effective supply chain for these important depots in a major state like
Maharashtra on a long-term basis. With growth in demand, these depots are likely to face
product short-supplies from HPCL and BPCL and, therefore, would require sourcing of
products from distant locations through other uneconomic modes like rail or road etc.

In the recent past, other OMCs have taken aggressive measures to ensure independent
product supply in areas where they are dependent on IOC for exchanges. Consequently,
IOC has to bridge this increasing demand-supply gap by rail/road/coastal movements from
own/others distant sources incurring higher logistics cost. In this backdrop and
considering the importance of Maharashtra market in the overall business plan of IOC, it
becomes imperative for IOC to plan for positioning of its own products in the region
through a cost-effective mode. Surplus products would be available at Koyali refinery for
feeding the depots in Maharashtra state and, in the process, substantial corporate savings
would accrue to IOC. With the proposed pipeline in place along with rail loading facilities at
Solapur, there would considerable savings in logistics costs by linking several depots in
Maharashtra and Karnataka through rail from Solapur, which were otherwise linked by rail
to relatively distant source like Koyali refinery.
Nature of the Project
The proposed project envisages transportation of petroleum products after
receiving from Koyali-Ahmednagar Pipeline to delivery location at Solapur marketing
terminals. New pipeline will originate from Ahmednagar (Maharashtra) and terminate at
Solapur district (Maharashtra).The length of pipeline will be 230 km long of 18" dia.

The proposed pipeline will pass from number of rivers/canals, Agricultural land etc. There
are no rehabilitation and resettlement (R&R) issues.

System Configuration
Extension of Koyali-Ahmednagar product pipeline upto Solapur would broadly comprise of
the following.
230 km long, 18 OD x 0.25 WT, API 5L-X70 grade pipeline, from Ahmednagar to
Solapur in Maharashtra
Pipeline facilities at Ahmednagar and Solapur
Scraper launching facilities at Ahmednagar while scrapper receiving facilities at
Solapur

Land form, Land use and Land ownership


The land use at stations is flat and land use of pipeline is varying from flat to simple
terrain. The pipeline will crosses many rivers/ canals, agricultural land etc. after laying
the pipeline the RoW of the agricultural land will be used for agricultural purpose. The
pipeline would be laid in new acquired RoW .The compensation of agricultural crop and
for acquired ROW will be given to the farmers during laying of the pipeline.

Mainline Route

The proposed pipeline would originate from Ahmednagar to Solapur in Maharashtra and
shall be laid in the independent new RoW. The proposed pipeline will deliver products to
the existing marketing terminal at Solapur. The terrain along the pipeline route is mostly
flat and plain for about 230 km with undulating, hilly along with rocky terrain in certain
areas.
The pipeline would cross a number of rivers, canals, roads, railway tracks, forest areas and
eco-sensitive zone of Great Indian Bustard wildlife sanctuary. The pipeline would
cross a number of rivers, canals, roads and railway tracks. The pipeline across major
perennial rivers/ canals are proposed to be installed by using horizontal directional drilling
(HDD) technique, whereas, minor rivers/ canals would be crossed through submerged
crossing method. Provisions have also been kept for installing pipeline by HDD method
across selected National/ State Highways. Pipeline across railway crossings and selected
National/ State Highways would be laid by using bored cased crossing method.

The pipeline would be provided motor operated sectionalised valves at regular intervals all
along the pipeline route including providing additional sectionalised valves in one side each
major river / canal crossings with a provision of NRV on the other side. Sectionalised block
valves has been considered as per the provisions of OISD-214, which are based on
population density index survey along the pipeline route.

Operation Philosophy

The proposed pipeline would transport MS, HSD, SKO and ATF to Marketing locations at
Solapur.

The typical pumping sequence would be as under.

BSIV HSD PCK/SKO BSIV MS PCK/SKO ATF PCK/SKO

Statutory Clearances

Suitable action will be taken for obtaining MoE&F clearance and other statutory clearances
for the proposed pipeline from concerned authorities, as applicable.

Manpower Requirement

Manpower requirement would be about 87 during construction phase and 77 for operation
of the pipeline, excluding Line Patrolmen (LPM). The requirement of manpower is expected
to be met through internal deployment as well as by induction of competent personnel.
The requirement of LPM for new right-of-way is envisaged to be outsourced.

Operating Cost

The operating cost of the pipeline system includes the cost of power for mainline pumping
units, utilities, consumables, salaries and wages, administrative overheads, repair and
maintenance etc. The operating cost of pipeline system during operation from
Ahmednagar to Solapur is estimated to be about Rs. 10 crore per annum at January 2016
price level

Project Schedule & Cost Estimates

Construction activities will start after all statutory clearances, including environmental
clearance of the project. Total time schedule for the project is 42 months after receipt of
statutory clearance.

Total cost of the proposed project is estimated as Rs. 471 Crore with terminal facilities at
Ahmednagar and Solapur.

Conclusions and Recommendations

The proposed Extension of Koyali-Ahmednagar product pipeline upto Solapur is


economically viable under all scenarios. It would facilitate cost-effective transportation of
products from Koyali refinery to Solapur in Maharashtra in comparison to other modes of
transportation. In addition, the proposed pipeline would also reduce the logistics costs of
supplying product to several depots in Karnataka and Telangana through the proposed rail
loading facility at Solapur. These locations are otherwise fed through a more distant
supply location i.e. Koyali/Panipat/Mathura refinery etc.

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