S GangulyIndian 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

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

Primary energy Consumption-Global

Source: BP Statistical review 2009

MM

TOE

World Energy Consumption 11299 MMTOE

India’s Energy Basket 2009

Source: BP Statistical review 2009

World

India Energy Consumption 433 MMTOE

India 4th largest consumer of OilOil Consumption in India increased at CAGR of 4% (1998-2008) against World CAGR of 1.4%

Country Wise Oil Consumption

Source: BP Statistical review 2009

MM

TOE

As on March 2008

Oil Balance

Attributes Brazil Russian Fed. India China US

Reserves as % of total world 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%

Projected Import dependence 2035 ---- 93% 90% 58%

7

India – placed most vulnerably among basic countries

Import dependency expected to rise beyond 90% levels Source: WEO, 2010

Source: Petroleum & Planning Analysis CellSource: Petroleum & Planning Analysis Cell

Source: Petroleum & Planning Analysis CellSource: Petroleum & Planning Analysis Cell

Refining scenario in India in 2010-11: Processing of Imported Vs. Indigenous crudeRefining scenario in India in 2010-11: Processing of Imported Vs. Indigenous crude

Installed Refining Capacity (as on 31.3.11): 193398 TMTPAInstalled Refining Capacity (as on 31.3.11): 193398 TMTPA

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.

Growth of Pipelines in India

Pipeline Transportation of Liquid Petroleum: Present scenario in IndiaOil 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

Growth of Pipeline Length

510

2061 2824 29853803 3903

62827120

9554

13459

0

2000

4000

6000

8000

10000

12000

14000

1965 1975 1985 1995 2000 2002 2004 2006 2008 2011

Length ( KM)

KM

YEAR

Product Pipelines in India

Growth of Pipeline Capacity

MMT

1.827.32

11.0215.31

26.4933.99

61.7254.99

62.59

76.23

0

10

20

30

40

50

60

70

80

1965 1975 1985 1995 2000 2002 2004 2006 2008 2011

Capacity(MMT)

YEAR

Product Pipelines in India

Advantagesof

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

Pipeline Infrastructure in India

(Crude & Petroleum Products)

Pipeline Infrastructure in India

(Crude & Petroleum Products)

Existing Liquid Pipelines: IndustryAs 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 1691 1847.3 676 667 21296

Capacity (MMTPA)Product 34.86 10.35 25.72 3.6 1.70 - - 76.23

Crude Oil

40.40 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

IOCL’s Existing Liquid Pipeline Network

Kandla

Vadinar

Chaksu

Mundra

Guwahati

BongaigaonSiliguri

Digboi

Tinsukia

Jalandhar

Meerut

Tundla

NajibabadRoorkee

Ambala

Mathura

KotSidhpur Ahmedabad

Jodhpur

Navagam

SanganerAjmer

Dahej

Chittaurgarh

Koyali

Bhatinda

SangrurPanipat

Rewari

Haldia

BarauniKanpur

Lucknow

Mourigram

Rajbandh

Chennai

Sankari Asanur

Trichy

Madurai

CBR

Product

LEGEND

Crude Oil

Pipeline Length Capacity (km) (MMTPA)Product 6401 34.86Crude 4366 40.40

Total 10767 75.26

BangaloreBangalore AFS

Paradip

Ratlam

Chennai AFS

Refinery

Hazira

Gas

Bharatpur

As on 01.03.2011

Delhi

BPCL’s Existing Liquid Pipeline Network

Guwahati

BongaigaonSiliguri

Digboi

Tinsukia

Jalandhar

Bijwasan

Ambala

Piyala

KotaSidhpur

Jodhpur

Sanganer

Bharatpur

Dahej

Koyali

Bhatinda

Panipat

Haldia

BarauniKanpur

Lucknow

Product

LEGEND

Crude Oil

Pipeline Length Capacity (km) (MMTPA)Product 1939 10.35Crude 935 6.00

Total 2874 16.35

Paradip

Indore

Chennai

Refinery

MumbaiAs on 01.03.2011

Delhi

Kochi

Manmad

KaroorCoimbatore

Bina

HPCL’s Existing Liquid Pipeline Network

Guwahati

BongaigaonSiliguri

Digboi

Jalandhar

Bahadurgarh

Ambala

Piyala

Sidhpur

Jodhpur

Sanganer

Bharatpur

Bhatinda

Panipat

Haldia

BarauniKanpur

Lucknow

Product

LEGEND

Crude Oil

Pipeline Length Capacity (km) (MMTPA)Product 2774 25.72

Paradip

Indore

Chennai

Refinery

Mumbai

As on 01.03.2011

Delhi

Kochi

Bina

Mathura

SolapurPuneVisakhapatanam

Hyderabad

Vijaywada

Mundra

BangaloreMangalore

Other’s Existing Pipeline Network

NRL

BongaigaonSiliguri

Digboi

Tinsukia

Jalandhar

BijwasanLoni

Ambala

Piyala

Sidhpur

Sanganer

Bharatpur

Koyali

Bhatinda

Panipat

Haldia

BarauniKanpur

Lucknow

LPG (GAIL)

LEGEND

Crude Oil (OIL)

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

Paradip

Indore

Chennai

Mumbai

As on 01.03.2011

Delhi

Kochi

Bina

Mathura

Solapur

Mangalore

VisakhapatanamHyderabad

Vijaywada

Bangalore

Uran

Kalol

Ankaleshwar

Product (OIL)

Crude Oil (ONGC)

Salaya

Barmer

Crude Oil (Cairn)

Crude OilTransportation

CRUDE OIL IN SHIPS

FLOATING HOSES

CROSS COUNTRY PIPELINE

REFINERY TANKAGE

UNDER BUOY HOSES

PIPELINE END MANIFOLD

OFFSHORE / ONSHORE PIPELINE

SHORE TANKAGES

PUMPING UNITS

SPM SYSTEM

OIL FIELDS

OFFSHORE LINE GATHERING STATION

Pipelines System: Crude Oil Transportation

NUMALIGARH 3.0(60,000)

Subsidiaries of IOCRefining Capacity: IOCL – 65.7 MMTPA out of – 195.4 MMTPA

MUMBAIBPC-12.0(240,000)HPC-6.5(110,000)

MATHURA8.0 (160,000) GUWAHATI

1.0(20,000)BARAUNI6.0 (120,000)

HALDIA7.5(150,000)

KOCHI9.5(190,000)

Koyali13.7(274,000)

DIGBOI0.65(13,000)

NARIMANAM1.0(20,000)

MANGLORE11.8(236,000)

PANIPAT15.0 (300,000)

VISAKH8.3(166,000)

BONGAIGAON2.35(47,000)

CHENNAI10.5(210,000)

JAMNAGARRIL-33.0 + 29.0(660,000+580,000)ESSAR-10.5(210,000)

TATIPAKA0.08 (1740)

PARADEEP 15.0(300,000)

BHATINDA 9.0 (180,000)

OthersNew

BINA 6.0(120,000)

Existing IOC

LEGEND

IndianOil Group owns 10 out of 20 refineries in India

Refineries – Overview

Figures in bracket are in terms of BPD

Kuddalore6 MMTPA

IndianOil

Jetty

MATHURA

KOYALI

VIRAMGAM

JAMNAGAR

SALAYA

CHAKSU

RAJKOT

S.NAGAR

ABUROAD

KOT

RAJOLASENDRA

SPM 2 SPM

1

PANIPAT

SIDHPUR

RAMSAR

REWARI

Salaya-Mathura crude oil pipeline

Section 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

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

Haldia Docklines 48/36 19

BOLPUR

Haldia

Bolpur

Barauni

BRPL BONGAIGAON

ParadipPARADIP

33

Petroleum ProductTransportation

REFINED PRODUCT FROM REFINERIES

IMPORTED / OTHER PRODUCTIN SHIP/OIL JETTY

PUMPING STATION

DELIVERY TERMINAL

PUMPING CUM DELIVERY STATIONS OR DELIVERY STATION

TANKAGESREFINERY’s PRODUCT TANKAGE

Pipelines System: Product Transportation

Digboi

Numaligarh

Tinsukia

Nahorkatiya

Guwahati

Bongaigaon

GUWAHATIREFINERY

Guwahati-Siliguri product pipeline

BONGAIGAONSILIGURI

Section Dia (inch)

Length (km)

Guwahati-Bongaigaon 8 162

Bongaigaon-Madarihat 8 128

Madarihat-Siliguri 8 145

BETKUCHI

MADARIHAT

HASIMARA

Siliguri

36

BARAUNI

LUCKNOWKANPUR

PATNAMUGALSARAI

Barauni-Kanpur product pipeline

ALLAHABAD

Haldia

Bolpur

Lucknow

Kanpur Mugalsarai

Allahabad

Section 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

BARAUNI REFINERY

37

Product pipelines ex-Haldia refinery

Section Dia (inch)

Length (km)

Haldia-Mourigram 12 117

Mourigram-Rajbandh 12 152

Budge Budge branch 12 8

Haldia-Barauni 12 525

Haldia

RajbandhMourigram

Budge

Budge

Asansol

Barauni

HALDIA

BARAUNI

ASANSOL

HALDIA REFINERY

RAJBANDH

MOURIGRAM

BUDGE BUDGE

Bolpur

38

Product pipelines ex-Koyali refinery

Koyali

Ahmedabad

Jodhpur

Kot

Navagam

Sidhpur

Sanganer

Section Dia (inch) Length (km)

Koyali-Ahemedabad 8 116

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

KOYALI REFINERY

SIDHPUR

VIRAMGAM

SANGANER

JODHPUR

AJMER

CHITTAURGARHKOT

NAVAGAM

AHMEDABAD

BAREJA

DAHEJ

HAZIRA

RATLAM

DAHEJ

HAZIRA 39

DELHI

PANIPAT

PANIPATREFINERY

MATHURA REFINERY

Section Dia (inch)

Length (km)

Mathura-Delhi 16 147

Mathura-Tundla 16 56

Mathura-Bharatpur 8 21

Bijwasan-Panipat Naphtha 10 111

Mathura

Bhatinda

Panipat

Jalandhar

Delhi

Ambala

Meerut

Tundla

Najibabad

Rewari

TUNDLA

MATHURA

Product pipelines ex-Mathura refinery

BHARATPUR

Bharatpur

40

REWARI

Product pipelines ex-Panipat refinery

Section Dia (inch)

Length (km)

Panipat-Ambala-Jalandhar 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

PANIPATMathura

Bhatinda

Jalandhar

Delhi

Jodhpur

Ambala

Meerut

Tundla Beawar

Chaksu

Najibabad

Kot

Sidhpur

RewariSanganer

PanipatSANGRUR

BHATINDA

JALANDHAR

NABHA

AMBALA

ROORKEE

NAJIBABAD

MEERUT

DELHI

41

Chennai

Sankari

Asanur

Trichy

Madurai

Pipelines ex-Manali refinery & other pipelines in Southern Region

Section Dia (inch)

Length (km)

Chennai -Asanur 14 256

Asanur–Madurai 10 270

Asanur–Sankari 12 157

Chennai -Bangalore 14/12 290

Bangalore ATF 8 33

Chennai ATF 8 95

Narimanam-Nagpattinam 18 7

Bangalore

Bangalore AFS

Narimanam

Nagapattinam

Chennai AFS

42

Digboi-Tinsukia product pipeline

Section

(Under Assam Oil Division)Dia

(inch)Length

(km)

Digboi-Tinsukia (Black Oil) 6 39

Digboi-Tinsukia (White Oil) 8 36

DIGBOI REFINERY

DIGBOI

TINSUKIA

Guwahati

BongaigaonSiliguri

Digboi

Tinsukia

Nahorkatiya

Numaligarh

43

Mode wise transportation of Crude Oil and Petroleum

Products.

Mode wise transportation of Crude Oil and Petroleum

Products.

INDIA

Rail16%

USA

Road 14%

Coastal18%

Pipelines52%

Typical Mode Wise Transportation Crude Oil & Petroleum Products- Industry

Dependence on road and rail infrastructure is putting severe strain on these infrastructures.

** Source : Association of Oil Pipelines,http://www.aopl.org/pdf/Shift_Report_2008_FINAL1.pdf

* Source : PPAC

Haulage – MT-Km basis

Present Transport Modal-Mix - IndustryPresent Transport Modal-Mix - Industry

Inter-Modal Mix- Industry Vs. IOCL Petroleum products

Present Transport Modal-Mix - IOCLPresent Transport Modal-Mix - IOCL

Capacity (MMT) basisCapacity (MMT) basis

Present Transport Modal-Mix - IndustryPresent Transport Modal-Mix - Industry

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

Present Transport Modal-Mix - IOCLPresent Transport Modal-Mix - IOCL

Capacity (MMT) basisCapacity (MMT) basisAs in 2010-11As in 2010-11

Gas Pipelines in IndiaGas Pipelines in India

Gas TransmissionN

atur

al G

as

Res

our c

es

Liquefaction Cryogenic Vessels

TerminalsLike Dahej

Cryogenic Truck/ Rail transport

Cryogenic Storage tanks

End Users

Re-gasification

Pipelines transport

Power / Fertilizer

Pipelines transport

49

Existing Gas Infrastructure in India

Pipelines LNG Import Terminals CGD

Company KMs % Share

GAIL 6778 61

GSPL 1659 15

RGTIL 1365 12

IOC 132 1

Others 1246 11

Total 11180 100

Company MMT % Share

PLL * Dahej

10 73

Shell 3.75 27

Total 13.75 100

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 Entities

27 19.3

Total 49 100

* IOC has a contract for 2.25 MMT at Dahej

* IOC’s JV with GAIL1MMT = 3.62 MMSCMD 50

LNG Terminal

Existing

Transmission PipelinesExisting

Upcoming

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

City Gas/ CNGExisting

Planned

JAGDISHPUR

PHOOLPUR

BHATINDA

BAREILLY

DISPUR

DELHI

AGARTALA

BARODA

LUCKNOW

PATNA

AHMEDABAD

RAJKOT

KOTA

MATHANIA

GWALIOR

UJJAIN

AGRA

KOLKATA

GAYA

BOKARO

VARANASIJHANSI

HAZIRA2.5 mmtpa

COIMBTORE

MUMBAI BHUBANESHWAR

KRISHNAPATNAM

NELLORE

CHENNAI

TUTICORIN

TIRUCHCHIRAPALLI

HASAN BANGLORE

KOLHAPUR

SOLAPURKAKINADA (MALLAVARAM)

VIJAYAWADA

DAMRA

DABHOL5 mmtpa

KANJIKKOD

AURAIYA

Iran-Pak-India Pipeline

Turk-Afg-Pak-India Pipeline

GOA

CUTTACK

VIJAYPUR

KANPUR

NANGAL

GURGAUN

PUNE

BHARUCH

SURAT

HYDERABAD

RAJAMUNDRY

BHOPAL

KOCHI5 mmtpa

ENNORE5 mmtpa

BARMER

MUNDRA6.5 mmtpa

Infrastructure - Existing & Future

BHILWARA

SRINAGAR

jAMMU

MEHSANA

PARADIP

RAIPUR

NAGPUR

JALGAON

UpcomingDAHEJ10 mmtpa*

Pipeline GAIL RGTIL Others Total

Existing 6778 1365 3037 11180

Future (by 2014) 5573 3030 8983 17586Total 12351 4395 12020 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.)

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 Terminals2016-17 & 2020-21 - Figs include RLNG Terminals in conceptual stage.

Source : MoPNG, Crisil Report & Internal Estimates53

Gas Supply Scenario (Apr’10 – Jan’11)

Domestic Gas RLNG Gas Market

Company Qty % Share

ONGC + OIL 56 44

RIL 56 44

Others 15 12

IOC 0 0

Total 127 100

Company Qty % Share

PLL 30 94

IOC 8.2 26

GAIL 15.8 52

BPCL 2.5 8

GSPC+ Others

1.5 8

Shell 2 6

Total 32 100

Company Qty % Share

GAIL 83 52

RIL 56 35

GSPC + Others 9.3 6

IOC 8.2 5.5

BPCL 2.5 1.5

Total 159 100Quantities in MMSCMD

1 MMSCMD = 0.33 mtoe54Source : PPAC

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

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].

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.

Source: EnergyTrack

Future Outlook for Pipelines in India

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