The Hindu Business Line : IOC's Paradip to Haldia pipeline by June

Net gain
Project could lead to crude transportation through very large crude carriers for Haldia, Barauni and Paradip refineries.
IOC embarks on Rs 1,600-cr expansion project at Haldia.
The company is in the final stages of deciding on the proposed Rs 200-crore Chennai-Bangalore product pipeline.

Kolkata , April 6

IndianOil's Rs 1,178-crore Paradip-Haldia crude pipeline inclusive of single point mooring and storage facility at Paradip is expected to be commissioned in June. The project was slated to be commissioned in March. The project would pave way for transporting crude through VLCCs (very large crude carriers) for the existing refineries at Haldia in West Bengal and Barauni in Bihar and the proposed 15-million-tonne refinery at Paradip in Orissa.

The 700-km pipeline will join Haldia-Barauni crude pipeline at Haldia and replace the existing system of supplying crude to Haldia and Barauni refineries (of six mt each) through Haldia port. The company currently cannot bring VLCCs at Haldia port because of lower draft availability.

Capacity expansion

IOC has taken up a Rs 1,600-crore capacity expansion project to 7.5 mt coupled with technology upgradation to ensure higher crude cut at Haldia refinery. A separate project is drawn to enhance the production of Euro-III fuel with an eye on export opportunities.

According to available estimates, following the commissioning of the pipeline, the refining margins of the Haldia and Barauni refineries will increase. The impact is expected to be as a high as $1 per barrel for Haldia refinery.

Chennai-Bangalore pipeline

Meanwhile, the company is in the final stages of taking a decision on the proposed Rs 200-crore Chennai-Bangalore product pipeline. "The pre-feasibility study is over and we are now preparing the detailed feasibility report. Hopefully we will take a decision within a month," a company official said.

IOC has commissioned Chennai-Tiruchi-Madurai product pipeline. This coupled with Chennai-Bangalore is expected to ensure smoother supplies in the southern States at a lower cost. The proposal was mooted in view of high rate of growth in demand for auto-fuel in these States.

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