IOC: Board approves new 1150-km pipeline

Vol 18, PW 13 (26 Feb 15) Midstream & Downstream

IndianOil is planning a new pipeline to evacuate products from its soon-to-be-commissioned 15m t/y Paradip refinery in Odisha, oil minister Dharmendra Pradhan's home state.

IOC’s pipeline division is preparing design and detailed engineering work on a proposed 1150-km pipeline at an estimated cost of Rs2789cr ($448m) from Paradip to Hyderabad in Andhra Pradesh. "Our Board approved the investment on January 29," confirms Anish Aggarwal, IOC’s newly appointed director pipelines who replaced VS Okhde on February 1.

Aggarwal adds the next step will be to approach the Odisha and AP state governments to secure RoU permission to lay the pipeline. "Engineering and design of the pipeline will be completed simultaneously," we hear.

Another IOC source adds the pipeline will have a 4.5m t/y throughput capacity carrying products like petrol, diesel, and kerosene. For the main pipeline the diameter will be 18-inches but other stretches will have 14-inch and 16-inch diameters.

From Paradip the route will run to Berhampur in Odisha, through Vizag, Rajahmundry and Vijayawada in AP before terminating at Hyderabad. "Each stretch will have pumping and delivery stations to evacuate products," we are told.

IOC wants to commission the pipeline within 36 months of receiving clearances. At the refinery IOC has begun testing machinery and equipment as it prepares to commission the Crude Distillation Unit in April and other units by December 2015.

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