IOC’s Paradip-Hyderabad pipeline awaits clearances

‘The pipeline will improve Indian Oil’s competitiveness’

March 18, 2017 08:21 pm | Updated 10:05 pm IST - HYDERABAD

Oil and gas industry.

Oil and gas industry.

A host of pre-construction activities, from statutory clearances to land acquisition, are in various stages for the Paradip-Hyderabad petroleum product pipeline of the Indian Oil Corporation.

The 1,212-km pipeline will evacuate products from the recently commissioned Paradip refinery and reach them to demand centres in Odisha, Andhra Pradesh and Telangana in a cost-effective and environment-friendly manner, officials associated with the project say.

From the date all statutory clearances are in place, the actual work on the pipeline will take about 36 months. The project, expected to cost about ₹2,800 crore, is slated for commissioning in 2019-20.

The new refinery and pipeline may provide Indian Oil ammunition to intensify competition in the region that Hindustan Petroleum Corporation and its Visakhapatnam refinery dominates now, officials said.

The proposed pipeline will cater to the markets of Berhampur in Odisha, Srikakulam, Vizianagaram, Visakhapatnam, Rajahmundry and Vijayawada in Andhra Pradesh and Hyderabad in Telangana.

An injection facility for coastal input at Visakhapatnam is also planned to cater to additional product demand. On various components, IOC Pipelines Division officials said intermediate pumping–cum–delivery stations will come up at Berhampur and in Visakhapatnam, Rajahmundry and Vijayawada, Andhra Pradesh.A Right of Way of 18 metres width is to be acquired for the pipeline, whose proposed capacity will be 4.5 MMTPA.

Forest clearance

Describing it as an extremely important project given the emerging market for petroleum products and other infrastructure development in the areas, officials said forest clearance in Odisha, for diversion of 2.81 hectares, is expected to be approved shortly.

With the pipeline route not passing through any of the reserved forests, sanctuaries or coral reefs in A.P. and Telangana, the company is in the process of obtaining final NOC from the respective PCCF.

One of the challenges for the project will be the 2,400-odd crossings in the entire route, which includes those through railway properties and on highways. Applications seeking NOC from various authorities had been submitted for all crossings, IOC officials said.

Land acquisition for associated facilities, wherever required, had been completed for terminal stations in Achutapuram and Hyderabad and were in an advanced stage in Berhampur. The tendering process for materials had also has been initiated, officials said.

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