Vol 3, PW 6 (14 Apr 99) Midstream & Downstream

In May 1997, the Indian government set up Petronet-India to oversee the construction of several new product pipelines across the country.

Today two of Petronet-Indias projects are steeped in controversy. Its proposal for a pipeline between Mangalore and Bangalore has come up against a powerful environmental lobby, while a second more grandiose scheme involving Reliance Industries (Central India Pipeline) is opposed by Bharat Petroleum and Hindustan Petroleum on the grounds that it will mark the death of the Bina refinery project in Madhya Pradesh.

Following is a breakdown of the crude pipeline projects promoted by Petronet-India:- PROMOTER: Petronet-India; Reliance Industries; Essar Oil, Indian Oil Corporation (IOC). Equity distribution still under negotiation.

ROUTE: Jamnagar (site of Reliance refinery in Gujarat), Rajkot, Koyali, Ratlam, Kota, Gwalior. From Ratlam there will be a spur line to Chittorgarh.

A second line will run from Ratlam to Itarsi, Nagpat and Hyderabad. Two more spur lines will originate between Ratlam and Itarsi - one going to Indore, another to Bhopal.

LENGTH: Not yet defined PROJECT VALUE: $952 (approx) COMMENT: Commissioning by 2002 on Common Carrier Principal, project conceived after Reliance and Essar threatened government with alternative pipelines. Route conceived by committee of Mukesh Ambani (Reliance), Shashi Ruia (Essar), Mohammed Pathan (IOC).

PROMOTER: Petronet-India (26%); Reliance Industries (13%); Essar Oil (13%); IOC (26%) ILFS (5%); Gujarat Industries Investment Corp (5%); Kandla Port Trust (5%) State Bank of India (5%); Balance (FIs) ROUTE: Vadinar (site of Essar refinery in Gujarat), Kandla (port in Gujarat) LENGTH: 300km PROJECT VALUE: $82-98m COMMENT: "Phase I" project, designed principally to evacuate product from Essars refinery. PROMOTER: Petronet-India (26%) Mangalore Refineries (26%); Hindustan Petroleum (26%); ILFS (5%); State Bank of India (5%); Balance (financial institutions) ROUTE: Mangalore (Karnataka), Hassan, Bangalore (Karanataka) LENGTH: 364km PROJECT VALUE: $125m COMMENT: A "Phase I" project, to cater to expansion of Mangalore Refineries from 3m t/y to 9m t/y by November 1999.

Financial closure near. PROMOTER: Petronet-India (26%); Cochin Refineries (13%); Bharat Petroleum (26%); ILFS (5%); Balance (financial institutions) ROUTE: Cochi (Kerala), Coimbatore, Karur LENGTH: 400km PROJECT VALUE: $110-127m COMMENT: A "Phase I" project, designed to evacuate white oil products from 7.5m t/y Cochin Refineries.

PROMOTER: Petronet-India (26%); IOC (26%); Balance (financial institutions) ROUTE: Paradip (Orissa), Ranchi (Bihar), Allahabad (Uttar Pradesh) LENGTH: 1,105km PROJECT VALUE: $357m COMMENT: A "Phase I" project, with projected throughput of 6m t/y, for evacuation of oil products from IOCs troubled joint venture 9m t/y greenfield refinery with Kuwait Petroleum Corporation (KPC) at Paradip, scheduled for commissioning in May 2002. PROMOTER: Petronet-India (26%); Bharat Petroleum (26%); Bharat-Oman Oil Ltd (23%) ROUTE: Bina (Madhya Pradesh); Jhansi; Kanpur (Uttar Pradesh) LENGTH: 400km PROJECT VALUE: Too early to know COMMENT: A Phase II project, still on the drawing board, designed to evacuate product from BPCLs troubled 6m t/y greenfield refinery in MP.

PROMOTER: Petronet-India (26%); IOC (26%); Madras Refineries (23%); ILFS (5%); Balance (Financial institutions) ROUTE: Chennai (Tamil Nadu), Trichy, Madurai LENGTH: Unclear PROJECT VALUE: $130m COMMENT: A "Phase II" project, still at the planning stage.