Financial Daily from THE HINDU group of publications Wednesday, Apr 12, 2006 |
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Corporate
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Accidents Logistics - Shipping Pipeline transporting crude for CPCL damaged Our Bureau
The pipeline, laid about 35 years ago, did not break. However, there were a couple of leakages from which oil spilled, and this was controlled immediately
Chennai , April 11 A section of a pipeline meant for transporting crude from Chennai port to Chennai Petroleum Corporation Ltd (CPCL) refinery in North Chennai slipped from the support structure and fell into water in the port on Monday night. The 30-inch pipeline of 580 m is still under water. There were no ships berthed at the time of the incident. Preliminary enquiry indicate to failure of the supporting structure, worn out due to corrosion, leading to the damage, Mr G.J. Rao, Deputy Chairman, Chennai Port Trust (ChPT), said. The pipeline, laid about 35 years ago, did not break. However, there were a couple of leakages from which oil spilled, and this was controlled immediately, he said. Mr A Kasturi Rangan, Director (Operations), CPCL, told Business Line that the mishap would not disrupt the refinery's operations, thanks to enough inventories of crude. Answering a question, he said the pipeline belonged to the ChPT and not to CPCL. From the refinery to the port's boundary wall, the pipeline belongs to CPCL. From the boundary wall to the loading area, it belongs to the port trust. He said the ChPT had asked CPCLto undertake the repair work, as the company has an inventory of pipelines and would be able to mobilise them quickly. Asked about costs, Mr Kasturi Rangan said the cost of replacing the damaged section with a new pipeline would not be more than Rs 50 lakh.
Other options explored
Mr Rao said the company had engaged about 100 of its employees to sort out the problem. Alternatively, options like using product pipeline, which transports refined products from the refinery to the port, to transport crude to the refinery are being considered. Also, use of pipelines for transporting naphtha, low sulphur heavy stock and furnace oil are being explored, he told Business Line. Two oil ships are being berthed on Tuesday. It will take four or five days for things to be normal for crude transportation, he said.
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