Solapur-Hyderabad pipeline of IOC to entail over ₹1,000 cr.


376-km facility to be a strategic link between Koyali, Paradip refineries

A Solapur-Hyderabad petroleum product pipeline that Indian Oil Corporation (IOC) has proposed is likely to be implemented as a strategic link by the national oil company at an estimated cost of a little over ₹1,006 crore.

Conceived to achieve multiple objectives, particularly ensuring continuity in supplies to key demand centres, the pipeline will serve as a crucial connection between the Koyali and Paradip refineries of IOC.

The combined capacity of the two refineries is 28.7 million tonnes. Post an augmentation of the Koyali refinery that IOC is planning, the total capacity will be nearly 32 MT. In other words, the Solapur-Hyderabad Link Pipeline (SHLP) will facilitate movement of petroleum products between the east and west coast. This, it will do by becoming a key link between two cross country facilities – Koyali-Ahmednagar-Solapur Pipeline; and Paradip-Hyderabad Pipeline – that will be 2,335 km long.

Reconnaissance survey for the pipeline from Solapur to Hyderabad has been completed. The length will be about 376 km and traverse through Gulbarga district of Karnataka. IOC has a marketing depot in Gulbarga, at a location about 130 km from Solapur. In 2018-19, the depot received petroleum products of about 360 TMT from various sources through rail and, as per a study, estimated to touch about 604 TMT by 2029-30.

The proposal, in view of alignment of the depot along the proposed route of SHLP, is to connect Gulbarga depot too with the pipeline, according to official documents. While Solapur has a marketing depot, Hyderabad end of the pipeline will be connected to Malkapur, where a terminal is to be developed under the Paradip-Hyderabad Pipeline project.

An important task SHPL will undertake is maintaining supplies, in case of a planned maintenance of one of the refineries or in case of exigencies, to Maharashtra, Andhra Pradesh and Telangana. Thethree States together accounted for 20% of petroleum products consumption in the country during 2018-19. Now, IOC sources products from other oil marketing companies in these States and rest by product movement from own sources through coastal, rail and road mode.

Thus, the pipeline will reduce dependence on other refineries and movements, and also be cost economical over time.

Considering the significance of the facility, senior officials of IOC’s Pipeline and Marketing Divisions in November had decided the pipeline should be taken up on strategic basis. A detailed feasibility report has been prepared. IOC has initiated the process of appointment of financial institution/agency for financial appraisal of SHLP.

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Printable version | Jan 19, 2020 2:44:54 AM | https://www.thehindu.com/news/cities/Hyderabad/solapur-hyderabad-pipeline-of-ioc-to-entail-over-1000-cr/article30546061.ece

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