Energy Resources of India: Petroleum, Fibers, Natural Gas

Petroleum Refineries

There are two stages → Production (drilling) + Refining

For Petroleum refineries, the raw material sources were less decisive factors

for industrial location

Because industries were already setup in coalfields and did not move away

due to industrial inertia.

Petroleum refining does not lead significant weight loss, unlike

aluminium/copper/sugarcane/ timber processing.

Virtually all the by-products can be used. Therefore, refineries can be set up

Near the raw material or

Near the market or

at an intermediate break of the bulk location (Ports/Coastal locations)

At raw material site: Disadvantages

Refinery will become useless after oil is exhausted from oil well

So whatever millions of dollars you had invested in setting up that refinery

will be wasted

Oil refining close to production site represents a weight loss of 10-11 % only

Hence not much cost saving in transport even if located near raw material site

Refined products have higher rate of evaporation, therefore it is better to set

up the refinery near the market

After 1970s, many of the Middle East and African countries started

nationalizing their oil operations

The ownership of refineries/oil wells were transferred from MNCs to

government owned PSUs

Hence nowadays, MNCs are reluctant to setup refineries in this region for the

fear of nationalization

Unrest / Instability as a location factor

Multinational companies do not feel confident to setup refineries inside the

middle-east or South America

During Arab-Israeli war, OPEC members stopped supplying oil to countries

that had supported Israel

There have been war/war-like situations due to Israel-Palestine conflicts,

Iran-Iraq, Iraq-Kuwait

Such instability, destruction, aerial strike → not good for business

In South America, there have been frequent (and violent) changes in the

regimes

Refineries at Market Location → Advantages

You can use raw material (crude oil) supply from more than one oilfield of

more than one country

So even if oil well is exhausted from country X, you can shift to country Y

After refining, the finished petroleum products can be supplied to interior

areas pipeline connection and trucks/tankers

In Europe, manufacturing industries also consume a large portion of

petroleum products

Therefore, refineries are also located in major manufacturing centers, where

petroleum products are demanded

India Refineries Challenges

Environmental activism/laws/regulations

Fears of explosion

Terrorism

Hence becoming difficult to setup refineries near market location

Synthetic fibers

Cellulose Fiber

Rayon → from natural cellulose

& from wood pulp

Found near pulp mills

True Synthetics

Nylon and Polyester

Produced chemically from coal or

petroleum by products

Found near petrochemical

refineries

Location factor

Input

The base material for most of the true synthetic fibers is benzene fraction of

crude oil

Benzene → liquid hence evaporates quickly, hazardous to transport

Therefore, synthetic fiber factories located near/inside petrochemical industry

Output

Synthetic fibers → Non-bulky + Non-perishable → Easily transported

Therefore, synthetic fiber industry need not be setup near market location

Although, with the progress in transport-cargo facilities, nowadays synthetic

fiber industry is not always in close proximity with petroleum industry

India – Synthetic fiber industry

In late 60s, Dhirubhai Ambani started Reliance for textile manufacturing at

Naroda near Ahmedabad, Gujarat.

But since polyester is made from petrochemicals, so he entered in

Petrochemical business.

But petrochemical is derived from Petroleum refining, so he moved into

Petroleum refining as well.

Finally Jamnager refinery set up in Gujarat

Thus he achieved complete vertical integration in the supply chain from

crude oil to synthetic fibers (even garments via “only vimal” brand)

Jamnagar refinery provides intermediate raw materials to Reliance’s textile

units at Dahej, Naroda, Vadodara in Gujarat

Similarly Oil discovery in Ankaleshwar-Sanand-Kalol led to growth of

Synthetic textile industry in this region of Gujarat

Natural Gas

Natural Gas Compared to Petroleum

Advantages

Cheaper

Does not

require

extensive

refining

Burns clean

Disadvantages

Storage and distribution is difficult

With the help of pipelines, the gas can be transported to

the consuming centers, but the construction of pipeline

and its security and maintenance is expensive. Hence

export is problematic

Once the pipeline is laid- its size/capacity cannot be

increased

Leakage detection is difficult in case of underground

pipelines

If market/buyers are not found, then gas is wasted by

burning (flaring)

Therefore it is economical only to mine gas near market

areas/ only if pipeline is established

International Pipeline Projects → India

Iran-Pakistan-India

Myanmar-Bangladesh-India

Turkmenistan-Afghanistan-Pakistan-India (TAPI)

ONGC Hazira, Gujarat

Input Natural gas from Bombay High

Process

They remove sulfur impurity from the (sour) natural gas, and

send it to other regions via pipeline

Process is known as “Sweetening the gas”

Output

“Sweet” natural gas is used in

LPG cylinders

Nitrogen based fertilizers

Household via pipelines as cooking gas

Labour

Not the deciding factor

Because skilled labour is mobile and Hazira has township for

them

Transport

Hazira – Bijapur – Jagdhishpur (HBJ) pipeline passes through

Gujarat, Madhya Pradesh, Rajasthan, UP, Delhi and Haryana

Hence all big markets are connected through pipeline

Gail Pipelines

Jamnagar Loni Pipeline Vizag Secunderabad Pipeline

Input

Reliance refinery

Jamnagar

Essar refinery Vadinar

Imported LNG from

Kandla port

Vizag – HPC Refinery

Imports from Vishakhapatnam

port

Market

Ajmer & Jaipur in

Rajasthan,

Gurgaon in Haryana

Delhi

Loni-Gaziabad (UP)

Vijayawada

Secunderabad, Near Hyderabad

Length 1300 Kms 600 Kms

Reliance KG Basin – Refining done at Kakinada in Andhra Pradesh

Input Gas from offshore block in Krishna – Godavari Basin

Refining

Onshore Gas Terminal at Gadimoga, about 30 Km south of

Kakinada in the state of Andhra Pradesh

Transportation of Gas

East West Gas Pipeline (EWPL) transports gas from Kakinada, the landfall

point of KG-D6 gas, to Bharuch (Gujarat) and traverses through Andhra

Pradesh, Karnataka, Maharashtra and Gujarat.

From Bharuch, they use the pipeline network of Gujarat State Petronet to

take the gas to end-consumers as well as connect to Hazira-Bijaipur-

Jagdhishpur (HBJ) pipeline

Through this entire Pipeline networking, gas reaches to fertilizer plants –

Tata Chemicals (Mumbai)

Rashtriya Chemicals & Fertilizers (Trombay)

IFFCO’s (Phulpur – Allahabad)

GSFC (Vadodara)

Kribhco (Hazira & Kota)

Fertilizer Industry Alongside Natural Gas

Urea/ Nitrogen Based industries are located near Natural gas source

Natural Gas has Methane (CH4), which when mixed with Oxygen, Nitrogen

+ heat in presence of catalysts produces Ammonia (NH3), known as Haber

process

This Ammonia (NH3) can be used for making nitrogen based fertilizers e.g.

Urea

Therefore availability (and price) of Natural Gas, affects the location of

Fertilizer industry

Similarly Neptha (obtained from crude oil) is also used in production of

nitrogen based fertilizers, hence proximity to oil refinery is also considered a

favourable factor.

Thanks to oil and gas from Bombay High, the Gujarat-Maharahstra region

got fertilizer plants at Hazira, Mumbai, Trombay, Vadodara etc.

Similarly, Hazira-Bijaipur-Jagdhishpur(HBJ) pipeline → fertilizer industry in

Bijapur, Sawai Madhopur, Shahjahanpur etc.

Conventional

resources of

Energy

The resources which are widely used and constitute the

major source of energy

Examples → Coal, Oil, Natural gas, Wood etc.

Limited, Non-renewable, Costly, Cause Pollution &

Exhaustible

Non-

conventional

resources

Solar Energy, Wind Energy, Tidal Energy, Geothermal

Energy, OTEC (Ocean thermal energy conversion) etc.

Renewable, Cheap, Pollution free & Inexhaustible

Renewable

sources of

Energy

Solar Energy, Wind Energy, Tidal Energy, Fish, Trees

etc.

Non –

Renewable

sources of

Energy Fossils (Coal, Gas), Minerals, Nuclear Power etc.

Biotic resources

Which have life >> Forests, Crops, Animals, Coal &

Mineral oil

Abiotic

resources Land, Water, Minerals

Ashok Chawla Committee on Natural Resources

Creation of national database of natural resources

Allocation of natural resources, if possible, through e-auction

Measures for benefit of stakeholders in mineral rich areas

Need for conserving Conventional Energy Resources

Are limited in supply and cannot be renewed easily.

Due to population explosion, modernization and industrialization the demand

for energy resources is increasing day by day

To control energy crisis there is need to conserve conventional energy

resources.

There is also an eminent need to explore alternative sources of energy

Energy Crisis

A situation in which resources are less than the demand

In the past few decades due to high demand, there is shortage of energy

resources, which has created energy crisis

Major causes for Energy Crisis:

Rapid Industrialization

Over Population

Transfer losses

Rise in oil prices

Problems in Middle east

Wastage of energy resources

Coal

Quality of coal is determined by its carbon content

Major problems of Indian Coal -

Low Carbon content

High Ash content

Low Calorific Value

Major coal producing areas in India → Jharkhand > Odisha > Chhattisgarh >

West Bengal

Chhota Nagpur Region → Hub of 90 % of Indian minerals (esp.in Coal &

Iron → Ruhr of India)

Major types of Coals

Anthracite

Best quality coal

Approx. 90 % carbon content

Found at J & K only in India

Very little smoke & ash content

Burns without flames

Bituminous

70 – 90 % carbon content

Most common in India

Used in making coke

Lignite

40 – 70 % carbon content

Known as brown coal

Peat

1st transformation of wood into

coal

~ 40 % carbon content

Coke

Formed by destructive distillation of coke

Heating of coal in the absence of oxygen to burn of volatile gases

High in carbon content

Petroleum / Mineral oil

Found in sedimentary rocks of marine origin

Formed by decomposition of tiny marine creatures, plants & vegetation

under mud, silt & sand

Over the years, it underwent chemical changes to form crude oil & natural

gas under the action of heat & pressure

20 % of India’s crude oil & gas demand is produced domestically & 80 %

is imported

Jamnagar Refineries of Reliance industries is world largest refinery

complex

Natural Gas

Mainly contains methane & found in association with mineral oil (75 %

lies in Bombay high & Basin oil fields)

Largest share of NG is as follows -

40 % → Production of chemical fertilizers

30 % → Power generation

10 % → LPG (Cooking Gas)

Conventional sources → Shale gas, Coal bed methane, Methane Hydrates, Tight

sandstones

Bio-Fuels

Fuel derived from Non fossil plants

In India, mainly centers around cultivation & processing of Jatropha plant seeds, used

in production of Bio – Diesel

Encouraged only on wasteland / government / forest land

Not allowed on fertile land

To produce ethanol from sugarcane (Bio-ethanol)

National Bio-fuel Policy – Targets minimum 20 % biofuel blending (both

bio-diesel and bio-ethanol) across the country by 2017

Electricity in India → Thermal > Hydro > Wind > Nuclear

Thermal Energy

67 % of total energy production

Generated by using fossil fuels (Coal, Petroleum, Natural gas)

No Geological conditions required

Limited reserves, Rising demands (cost) & non – ecofriendly

Largest Producer → Maharashtra

To boost Thermal power production gov. has promoted Ultra Mega Power

Projects (4000 MW & above)

Hydroelectricity

18 % of total energy production

Eco-friendly, Clean & Renewable

Small hydel power projects < 25 MW

Are counted under New renewable energy sources

Largest Producer → Andhra Pradesh

Central electricity authority (CEC) has estimated Hydel power potential of

84000 MW at 60 % load factor from 39000 MW at present

Nuclear Energy

26 % of total energy production

Energy obtained from atomic minerals viz. Uranium, Thorium, zircon,

beryllium

Provide colossal energy through a small quantity of substance

Thorium → Found as monazite sand in lakes & sea beds

Thorium → AP > TN > Kerala > Orissa constitutes 30 % of world reserves

Largest Producer → Tamil Nadu

Very economical; does not produce green-house gases that pollute

atmosphere

Wind Energy

Non-conventional Renewable source of energy

5th largest installed wind power capacity in the world

Largest Producer → Tamil Nadu

High cost as compared to the efficiency of power generated

Nagercoil (TN) and Jaisalmer (Rajasthan) are well known for effective use

of wind energy in the country

Solar Energy

Non-conventional Renewable source of energy

Thermal + Photovoltaic → Sunlight to energy

High cost as compared to the efficiency of power generated

India plans to add 20000 MW of solar energy by 2022 under Jawahar

Nehru National Solar Mission

The largest solar plant of India is located at Madhavpur, near Bhuj, where

solar energy is used to sterilise milk cans.

Tidal Energy

Non-conventional Renewable source of energy

Oceanic tides can be used to generate electricity.

Floodgate dams are built across inlets

During high tide water flows into the inlet and gets trapped when the gate

is closed.

After the tide falls outside the flood gate, the water retained by the

floodgate flows back to the sea via a pipe that carries it through a power-

generating turbine.

In India, the Gulf of Kutch, provides ideal conditions for utilising tidal

energy.

Experimental plant (150 kw) at Vizinjam (Thiruvananthapuram) & 900

mw at Kutch

Geo Thermal Energy

Refers to the heat and electricity produced by using the heat from the

interior of the Earth

Exists because, the Earth grows progressively hotter with increasing depth

Groundwater in such areas absorbs heat from the rocks and becomes hot.

It is so hot that when it rises to the earth’s surface, it turns into steam.

This steam is used to drive turbines and generate electricity.

Two experimental projects have been set up in India to harness geothermal

energy

Parvati valley near Manikarn in Himachal Pradesh and Puga Valley,

Ladakh

Bio Gas

Energy produced from organic waste such as farm waste, shrubs, animal

and human waste

Converted into energy by direct combustion or by conversion of such

wastages into alcohol, methane, or other storage fuels

Provides pollution-free energy

Cheaper than most of the common fuels

The residue can be used as manure

Has higher thermal efficiency in comparison to kerosene, cow dung, coal

and charcoal

OTEC

Ocean thermal energy conversion

Uses the difference between cooler deep and warmer shallow surface

ocean waters to run a heat engine