The Hindu Business Line : IOC's Paradip crude pipeline on the fast track

INDIAN Oil Corporation's Rs 1,178-crore Paradip-Haldia crude oil pipeline is set to become operational by end of 2005, at least 6 months ahead of its scheduled completion in 2006. Environmental clearance for the project is available and the notification process is under way for acquisition of Right Of Way (ROW) for pipeline corridor stretching from Paradip to Haldia.

The bidding process has been completed for all major works and purchase orders have been placed. While SBM will manufacture the single point mooring (SPM) system, the installation company would be identified soon, according to Mr A.M. Uplenchwar, Director (Pipelines) of IOC.

Gammon India has been entrusted the task of constructing the main pipeline along with Dodsal, a specialist company in laying long pipelines, Mr Uplenchwar told Business Line over telephone.

To accelerate the project execution, an initiative has been taken to form a core group comprising officers from IOC and the Paradip Port Trust (PPT) to leverage the existing port infrastructure facilities. An agreement with the port would be in place before start-up of offshore SPM operations.

Mr Uplenchwar held discussions with the Chairman of PPT to facilitate the smooth construction of offshore infrastructure and onshore facilities at Paradip and laying of pipeline from Paradip to Haldia. He also met Government officials, including the Chief Secretary of Orissa, to seek assistance in the implementation of the project, which is expected to help the socio-economic growth of the region.

The SPM at Paradip will be the first on the East coast and third in the country, with IOC having set up one in Vadinar and Reliance in Jamnagar on the West coast. The IOC project would also make Paradip a major petroleum hub and de-congest, the busy ports at Kolkata, Visakhapatnam and Chennai.

IOC is implementing the strategic cross-country Paradip-Haldia crude oil pipeline originating from Paradip in Orissa and terminating at Haldia in West Bengal for further conjoining with the existing Haldia-Barauni crude oil pipeline (HBCPL) to maximise the value of the operations of its refineries at Haldia and Barauni, in addition to Bongaigaon Refinery and Petrochemicals Ltd (BRPL) in Assam and future refinery in Paradip.

Steps in the process involve setting up the SPM oil terminal in the waters of Paradip Port Trust (PPT) about 20 km offshore and bulk crude oil storage terminal onshore Paradip.

The project is designed to achieve throughput of 11 million tonnes of crude oil in the first phase of its operation.

About 70 per cent of the pipeline's 330 km overland route will traverse through Orissa and balance in West Bengal.

The technical challenge presented by the rough sea environmental conditions at Paradip mean dovetailing the high-end technology in design, installation and construction of SPM and offshore pipeline system, which the project implementers are confident to meet.