Oil firms oppose proposal to use common terminal

ETTPL had suggested the oil companies could use its terminal in Ennore and avoid delay in shifting pipeline operations

January 08, 2014 08:46 am | Updated May 13, 2016 07:59 am IST - CHENNAI:

Ennore Tank Terminals Private Limited (ETTPL) has extended a proposal to oil marketing companies (OMCs) to use its ‘common user marine liquid terminal’ already established in Ennore. However, the OMCs have opposed the proposal, stating ETTPL was coming in the way of establishing their own terminals as a long-term measure.

ETTPL filed an impleading petition before the southern bench of National Green Tribunal which was hearing a plea to shift the OMCs’ operations from densely populated north Chennai areas. The OMCs announced their plan to shift their terminals to Ennore following leakages reported from pipelines in Tondiarpet and Korukkupet.

ETTPL submitted that it had established the terminal under built-operate-transfer system with Ennore Port Limited on a public-private partnership. The terminal has adequate infrastructure for berthing and unloading, as well as storage tanks and pipelines for transportation. ETTPL stated it was in a position to provide an expeditious solution to avoid the delay in shifting pipelines from the Tondiarpet area. The OMCs would be able to supply directly from the tanks and eliminate the need for transporting oil through pipelines.

P.S. Raman, senior counsel, said ETTPL would be able to expand the storage capacity by building tanks, if necessary.

Opposing the impleading petition, Krishna Srinivasan, counsel for BPCL, alleged ETTPL was attempting to take advantage of the situation and was seeking to pursue its own commercial interests.

Mr. Srinivasan said the OMCs had had detailed deliberations on setting up terminals and decided to shift their terminals. As a long-term measure, BPCL would shift its activities from Tondiarpet to Ennore, for which 100 acres of salt-pan lands have been allotted by the department of industrial policy and promotion.

The Bench directed other oil companies to file their replies to ETTPL’s plea on January 24.

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