Indian Oil – Pipelines Division : Playing a vital role in meeting India’s energy demand

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An Interview with D. S. Nanaware | Executive Director (Projects) | Pipelines Head Office | Indian Oil Corporation Limited

What is the overall scenario of pipeline industry in India?

Reply: Cross-country pipeline networks, preferred as a cost-effective, energy-efficient, safe and environment friendly mode for transportation of crude oil and petroleum products, have been playing a vital role in meeting India’s energy demand. These are a key constituent of the country’s infrastructure, transporting crude oil from import terminals as well as domestic sources to inland refineries, and finished products from refineries to major consumption centres and supplying Natural Gas to the customers and CGD entities.

Since logistic costs play a significant role in commercial consideration, with growing competition, each company is trying to reduce costs of transportation and associated overheads. Expansion of pipeline network is taking place for reducing transportation costs and product losses. It is expected that each company will therefore try to expand its pipeline network in accordance to its business strategy at the same time complying to the Government policies and guidelines. Creating sustainable transportation system through cross-country pipeline with the objective of preserving environment and protecting human health and safety would be a great challenge for the petroleum industry.

Crude oil pipelines connect the centres of hydrocarbon extraction and onshore input terminals to refineries. India’s crude oil pipeline length as of on date is 10,419km with a cumulative capacity of 147.9MMTPA with IOCL have the majority share of about 50% in terms of length and share of about one third in terms of capacity. Finished products from refineries to major consumption centres is being transported through Product pipelines. India has around 14,727 km of product pipeline (excluding LPG) in the country with a total capacity of around 101.1 MMTPA. In addition, there is 3738km of LPG pipelines with a capacity of 9.5 MMTPA. Again, IOCL is the leader, amongst the Pipeline Transportation companies having POL Pipelines of 9400Km with a capacity of 47.5MMTPA. During 2020-21, capacity utilization of product pipeline in the country was around 66 % percentage. And that of LPG Pipeline stood at 89%.

In terms of gas transmission pipelines, there is an existing network of around 19,988 km (Including Sub-Transmission Pipelines) and another 15,400 km of Gas Pipelines are under construction. GAIL is having longest Natural Gas Pipeline Network with around 12,000km of operational pipeline. Availability of a robust gas transportation infrastructure is crucial for development of the natural gas market.  There is a need to create gas infrastructure and at the same time ensuring co-ordinated development across the entire value chain.

Healthy development of the oil and gas industry hinges on the concurrent development of a commensurate support infrastructure. Therefore, encouraging investments in ports, petroleum product pipelines, storage terminals, etc. forms a vital part of the development plan of industry.  Due to its inherent advantages, product pipelines are preferred over other competing transportation modes such as railways and road.  There is an urgent need, therefore, to enhance coverage of pipelines throughout the country, depending, of course, upon relative economics. 

  • Increasing the coverage of pipelines throughout the country.
  • Leveraging the inherent advantages of using pipelines to transport products and enhancing the pipeline infrastructure in product pipelines.
  • Building a sound gas transportation infrastructure to support the projected growth of the gas market. 

What are the competitive advantages of cross-country pipelines to oil industry? 

Reply: Oil and gas pipelines act as veritable arteries inside the Earth. Cross-country oil pipelines are the most energy-efficient, safe, environment-friendly, and economic way to ship hydrocarbons (gas, crude oil, and finished products) over long distances, either within the geographical boundary of a country or beyond it. A significant portion of many nations’ energy requirements is now transported through pipelines. The economies of many countries depend on the smooth and uninterrupted operation of these lines, so it is increasingly important to ensure the safe and incident-free operation of pipelines.

The true potential of these pipelines is that they have a number of benefits over other competing modes:

  • Economical &environmental friendly. In addition to having a higher transportation capacity, they are energy efficient in comparison to road or rail transport. Carbon emission due to Pipeline transportation is the minimum when compared to the alternate modes.
  • More reliable. They are less exposed to environmental and socioeconomic factors. Despite being a slow transportation system (with a speed between 5 and 10 km/h), it is constant, that means pipelines can operate 24*7 throughout the year. This ensures the timely delivery of product at the demand centres.
  • Safer. The modern pipeline supply control systems can detect any loss of fuel and can take requisite action immediately. As they are normally underground, the rate of serious incidents is far below the rate recorded for transportation on trucks and or even trains.

Indian Oil has shown significant progress in establishing pipelines since its inception.

Can you tell us some of its recent achievements?

Reply: IndianOil established its first pipeline, 435 km long Guwahati Siliguri Pipeline in the year 1964. Since then, the organisation has always given importance to the expansion pipeline network commensurately with expansion of refining capacity and marketing volumes. We reached the 5,000 km mark in the year 1,999, 10,000 km mark in 2010 and 15,000 km mark in 2021. In last 5 years alone, we commissioned more than 3,500 km pipeline. We at Indian Oil always prepare well ahead of time and keeps ourselves ready to face any challenge to retain our market leadership. As a strategic move, we had got many numbers of projects approved in the last decade and many are nearing the completion stage. Timely completion of these projects will certainly help in positioning the products in a cost-effective manner giving a strategic advantage in the ever changing and challenging business environment. We aim to add another 5,000 km to our pipeline network in next two years of time.

About project specific achievement:

  • The first transnational pipeline of the country viz. Motihari-Amlekhgunj Pipeline to Nepal was commissioned in the year 2019. We had faced enormous challenges pertaining to clearances, terrain, etc. to complete this project. With the support of all the stake holders we could overcome all such challenges and completed the project 8 months ahead of the schedule.
  • We could emerge as the successful bidder in the PNGRB bidding process to build and operate Ennore-Thiruvallur-Begaluru-Puducherry-Nagapattinam-Maduari-Trichy natural gas pipeline. Since 2014 pipeline laying work in Tamil Nadu was kept in abeyance due to local socio-political situations. With our efforts in liaisoning with various authorities and with their support, we could commission Ramanathapuram-Tuticorin section of this project in this year. This is the first cross country pipeline commissioned in Tamil Nadu in the recent years.
  • On LPG pipeline project front, we have Paradip-Haldia-Durgapur LPG pipeline (PHDPL) which is under operation up to Banka. Project is under way to increase the capacity and extension up to Patna and Muzaffarpur for this pipeline. Kandla-Gorakhpur LPG Pipeline project (KGPL), the world’s longest LPG pipeline is under implementation through a Joint Venture company, IHB Private Ltd. We have 50% stake in the company with 25% stake each from BPCL and HPCL. We as a lead partner participated in the bidding process of PNGRB and emerged as the successful bidder. PHDPL and KGPL together will have capacity of about 11.75 MMTPA which is around one-third of the country’s current LPG demand.

The coming years will focus more on gas as the source of energy. What plans are afoot in gas sector?

Reply: You are absolutely correct, a major shift is happening towards gas as we speak. The share of gas in Indian energy basket at around 6% is well below the world average of 24%. We at IndianOil are also committed towards the vision of the country to increase the share of gas in Indian energy basket to 15% by 2030. One of the key driving force for achieving the above target is faster development of requisite infrastructure for transportation of natural gas. This involves development of LNG import facility, constructing cross country natural gas pipelines system and CGD infrastructure.  

As stated above, we are in the process of constructing our maiden gas pipeline in Tamil Nadu which will also extend to some parts of Karnataka i.e. Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin Natural Gas Pipeline (ETBPNMTPL) having a capacity of about 35 MMSCMD and approximately 1400 km in length. After completion, this pipeline will form an integral part of the National gas grid and will cater the requirements of all major gas demand centres in the southern part of the country.

We are also executing one of the most critical pipeline project is North-Eastern region of the country i.e. North-East Gas Grid project (NEGG) through JV route. Indradhanush Gas Grid Ltd (IGGL), a JV company of IOCL, GAIL, OIL, NRL and ONGC, is developing a network which is 1656 km long and will have a capacity of 4.75 MMSCMD on completion. NEGG Project will be connecting all eight North-Eastern States to the National Gas Grid. Due to the high importance of the project, a Viability Gap Funding (VGF) of Rs 5559 crore which is 60% of the total project cost i.e. 9265 crore has been granted by Government of India.

Our focus with respect to Natural Gas Pipeline projects is to commission and capitalise all the projects at the earliest. We will look forward for any future opportunities from PNGRB for development of Natural Gas Pipelines.

Further, we are also aggressively working on development of City Gas Distribution (CGD). In the 9th and 10th round of CGD bidding, we have secured authorisation from PNGRB for 17 Geographical Areas (GAs) on standalone basis at a project cost of Rs. 13,873 crore. The work for development of CGD infrastructure is on full swing. Out of the 17 GAs, CNG sales have already commenced in 6 GAs. Despite being severely affected by COVID-19 pandemic, we have achieved all the Minimum Work Program (MWP) targets which are being strictly monitored by PNGRB.

PNGRB has already invited bids for the development of City Gas Distribution (CGD) network in 65 Geographical Areas (GAs) under the 11th round of bidding. We are making all out efforts to secure as many GAs as possible in the 11th round which will in-turn help to establish ourselves as a key player and expand our footprint in Gas business.

What are the future plans of eastern zone pipelines in Indian Oil? 

Reply: We are executing one of the most critical pipeline project in the North-East region of the country i.e. North-East Gas Grid project (NEGG) through JV route. This project is a part of “The Hydrocarbon Vision 2030” for North-East which was released by Hon’ble Minister of P&NG. Indradhanush Gas Grid Ltd (IGGL), a JV company of IOCL, GAIL, OIL, NRL and ONGC, is developing a network which is 1656 km long and will have a capacity of 4.75 MMSCMD on completion. NEGG Project will be connecting all eight North-Eastern States to the National Gas Grid. Due to the high importance of the project, a Viability Gap Funding (VGF) of Rs 5559 crore which is 60% of the total project cost i.e. 9265 crore has been granted by Government of India.

Further there is a pipeline project i.e. Guwahati-Silchar-Imphal product pipeline project (GSIPL) for which DFR has already been submitted to MoP&NG for grant of VGF. On completion, this pipeline will be vital for evacuation of products from Guwahati Refinery towards Lumding and Silchar. This will significantly reduce the logistics cost of supplying products to distant demand centres.

IOCL is also exploring the options for developing bulk LPG import terminal near Chittagong (Bangladesh). This will lead to significant improvement in supply of LPG to North-East. Currently, LPG is being transported in this area from Haldia/Paradip through uneconomical transportation. After successfully laying the 1st trans-national pipeline to Nepal, we are looking for opportunities that will strengthen our relations with Bangladesh too.

How do you view IOCL’s pipelines network in 2025?

Reply: I would like to start by giving a glimpse of Indian Oil’s Pipelines Business.  IndianOil Pipelines Division has achieved the milestone of 15,000km pipeline network length in last fiscal. Current capacity stands at 96 MMTPA for liquid pipelines and 22 MMSCMD for Gas Pipelines. Pipeline projects valued around Rs. 25,000 crores are under implementation on standalone basis, which upon completion, would increase the pipeline network length to around 21,000 kms and capacity would increase to around 144 MMTPA and 50 MMSCMD for liquid and gas pipelines respectively.

Kandla-Gorakhpur LPG Pipeline project (KGPL), the world’s longest LPG pipeline is under implementation through a Joint Venture company, namely IHB Private Ltd. We have 50% stake in the company with 25% stake each by BPCL and HPCL. We as a lead partner worked for the bidding process of PNGRB and emerged as the successful bidder. Paradip Haldia Durgapur PL and KGPL together will have capacity of about 11.75 MMTPA which is around one-third of the country’s current LPG demand.

Indradhanush Gas Grid Ltd (IGGL), a JV company of IOCL, GAIL, OIL, NRL and ONGC, is developing a network which is 1656 km long and will have a capacity of 4.75 MMSCMD on completion. NEGG Project will be connecting all eight North-Eastern States to the National Gas Grid. Due to the high importance of the project, a Viability Gap Funding (VGF) of Rs 5559 crore which is 60% of the total project cost i.e. Rs 9265 crore has been granted by Government of India.

Further our plans are to connect each major demand centres with at least 2 source points/refineries through pipelines to maintain flexibility and continuity in our business operations. We will further explore the possibilities to provide pipeline connectivity to balance Marketing POL Terminals which are having yearly throughput of more than 1 MMT. In addition to lines for the captive usage, IOCL will be aggressively participating in the future EoIs/ Bids floated by PNGRB.

Aligning with Government of India’s vision of increasing the nation’s share of natural gas in the primary energy mix to 15% by 2030, IndianOil is creating world class infrastructure for natural gas pipelines, regasification terminals, and CGD infrastructure on standalone basis and through JVs.

What is the kind of investments of IndianOil has planned for expanding its network?

Reply: As detailed above, Pipeline projects valued around Rs 25,000 crore are under implementation on standalone basis, which upon completion, would increase the pipeline network length to around 21,000 kms and capacity would increase to around 144 MMTPA and 50 MMSCMD for liquid and gas pipelines respectively. We are also executing two pipeline projects worth Rs 20,000 crores through Joint Ventures.

Tell us something about the safety and security aspects of your Pipelines Division?

Reply: Pipelines have always been known as the safest and environment friendly mode of transportation for petroleum products. The emissions from pipeline system are much less in comparison to the conventional mode of transportation like rail or road.   Since, most of the cross-country pipelines are underground; these are naturally protected from calamities like flood, storm and even earthquakes if designed in line with the requisite codes and standards. Hence, continuous supply of the products can be ensured irrespective of the weather. However, the reliability of the system can only be ascertained by effective safety and security practices. Some of the best industry practices which we have inculcated are as under:

  • In case old pipelines, higher frequency of inline inspection (ILI) is being maintained. In case of new pipelines, baseline data is being generated which will help in analysing the rate of health deterioration after future ILIs. Condition based ILI is also being undertaken by using specialized technologies like Ultrasonic Technique (UT) based compression wave and shear wave techniques.
  • IOCL has been operating pipelines since 1964. Nearly 23% of the total network are more than 35 years old, the oldest pipeline is GSPL which is in its 57th year of service. The health condition of all these pipelines is assessed through ILI, CP and route pigging surveys. As per the survey data, all these pipelines are satisfactory.
  • Use of Centralized integrity management system (CIMS) software to store, integrate and analyses all pipeline integrity related data. Entire network of IOCL pipeline has been analysed in the system for risk assessment. Apart from above, the inline inspection, repair assessment monitoring and identification of coating defects, CP system evaluation and fatigue assessment are also part of the system.
  • Use of Pipeline Intrusion Detection and Warning System (PIDWS), which can detect, locate and identify any intrusion attempt along the entire monitored length in real time.

Where does IndianOil stand with respect of global pipeline operations?

Reply: We constantly benchmark our operation and maintenance activities with the best in the world to enable us to be on the path of constant improvement. In the International Benchmarking Study done by leading agency M/s Solomon Associates, USA in the year 2018 on performance analysis of liquid pipelines our performance is as under:

  • Pipeline system availability of more than 99% in the year 2018-19
    • Average adjusted energy consumption of IOCL pipelines – 7.0 MWh/M m3-km against the world average of 20.1 MWh/M m3-km, which is also the lowest of all Indian pipeline companies
    • Major Maintenance Index of IOC Pipelines is 237 USD/ k EPC against the world average of 316 USD/ k EPC
    • Volume Related Expenses of IOC Pipelines is 522 USD/ k EPC against the world average 724 USD/ k EPC

However, certain areas of improvements have also been indicated therein. Upon which we are working out expeditiously.

Further, Pipeline Benchmarking study 2020 shall be again conducted through M/s Solomon Associates, USA for better comparison of the performance parameters. Focus areas for the bench marking study are operational availability and reliability rather than capacity utilization. For efficiency improvements it is being planned to phase out all engine driven mainline pumping units (MLPUs) with energy efficient motor driven MLPUs. Trade off between numbers of MLPUs into operations vis a vis optimized use of DRA injection are being done to ensure economically optimal operations. Focus on these issues would provide competitive edge over competitors.

How do you maintain and sustain such a vast network of pipelines?

Reply: As far as IndianOil is concerned, around 30% of IOCL’s total pipeline length is more than 30 years or above old with the oldest pipeline being GSPL which is in its 57th year of service. As we progress ahead, it is pivotal to keep the foundation strong which is required for providing support to expanding business. Integrity management of such old assets with the help of latest technologies available in the market like Centralized Integrity Management system, adopting cutting edge technologies in ILI etc. as part of implementing cradle to grave approach strategy is one of the key focus areas for us.

Among the major integrity monitoring techniques In-line Inspection through intelligent pig is an important technique. Annual average of ILI in IOCLs system is more than 3000km of pipelines. We have been maintaining higher frequency of pigging than the statutory requirements (OISD-141 and PNGRB T4S Guidelines) of ILI in case old pipelines. Baseline data in case of new pipelines are also being generated which will help in analysing the rate of health deterioration after future ILIs. Condition based ILI is also being undertaken by using specialized technologies like Ultrasonic Technique (UT) based compression wave and shear wave techniques. 

IOCL has also switched over its integrity management programme to the one based on centralised computer-based integrity management system (CIMS) under which a holistic risk-based approach is adopted. Centralized integrity management system (CIMS) was introduced in 2019 in Pipelines Division with an idea to store, integrate and analyses all pipeline integrity related data in a software-based system. As of now more than 14000 kms of pipelines have been analysed in the system for risk assessment. Apart from above, the inline inspection, repair assessment monitoring and identification of coating defects, CP system evaluation and fatigue assessment are also part of the system.

To further boost the security of its pipelines, IndianOil has undertaken focused digital initiatives like the optical fibre-based Pipeline Intrusion Detection and Warning System (PIDWS). PIDWS is distributed sensing system, which can detect, locate and identify any intrusion attempt along the entire monitored length in real time.  The system has been installed for 765Km of pipelines and is in progress for other pipelines based on risk assessment.

We are also monitoring the vast network through Drones. Recently, the Drone monitoring of the 120 KM long Delhi-Panipat Section of IndianOil’s Mathura-Jalandhar. We are also exploring several other innovative security protocols to enhance pipeline security further, like the ‘Negative Pressure Wave Type Leak/Pilferage Pipeline has commenced operations. The live feed of the Drones is monitored at the Pipeline locations.

Any technological intervention?

Reply: Some of the major technological interventions are

  • Industrial Internet of Things (IIOT): As part of updating our maintenance philosophy, which is currently focused on preventive maintenance, scheduled maintenance, condition monitoring based on OEM recommendation and our experience, IOCL Pipelines Division has implemented Risk Based Inspection / Reliability Centred Maintenance to improve reliability and performance of our business operations. An early warning system, which can forecast failure much before the happening of incident will not only ensure smooth operations but saves us from disasters and unnecessary splurge, is the need of the hour. Industrial Internet of Things (IIoT) based solutions that applies Machine learning from the data collected from instruments, is being installed on critical equipment and does the much-required predictive health analysis. Also, remote monitoring of operation parameters of critical equipment is available in SCADA to monitor and control safe operation. These data are captured and stored for future reference and further analysis.
  • PIDWS: Pipeline Intrusion Detection and Warning System (PIDWS) is distributed sensing system, which can detect, locate and identify any intrusion attempt along the entire monitored length in real time.  The system has been installed for 765Km of pipelines and is in progress for other pipelines based on risk assessment.
  • Drone Based RoW Monitoring: We are also monitoring the vast network through Drones. Recently, the Drone monitoring of the 120 KM long Delhi-Panipat Section of IndianOil’s Mathura-Jalandhar. The live feed of the Drones is being monitored at the Pipeline locations.
  • Centralised computer-based integrity management system (CIMS): IOCL has also switched over its integrity management programme to the one based on centralised computer-based integrity management system (CIMS) under which a holistic risk-based approach is adopted. Centralized integrity management system (CIMS) was introduced in 2019 in Pipelines Division with an idea to store, integrate and analyses all pipeline integrity related data in a software-based system. As of now more than 14000 kms of pipeline has been analysed in the system for risk assessment. Apart from above, the inline inspection repairs assessment monitoring and identification of coatings, CP system evaluation and fatigue assessment are also part of the system.
  • Satellite Image Mapping: We are making use of Satellite imagery and GIS map data to reduce the number of safety and security issues for pipeline corridor. The following are being done:
    • Monitoring electric and gas transmission corridors and rights-of-way
    • Monitoring vegetation intrusion on transmission and distribution lines
    • Traditional safety, hazards, and disaster issues facing pipeline and infrastructure
    • Deliberate acts of aggression
    • Location of leakage

What about your foreign field operation activities?

Reply: We are currently operating one international pipeline viz. Motihari-Amlekhgunj Product pipeline (MAPL) which supplies petroleum products from Barauni refinery to Nepal. India and Nepal Govt. has formed a Joint Working Group (JWG) to further strengthen the long-standing cooperation between the two countries in the Oil & Gas sectors. JWG is currently exploring further areas of cooperation, including possibilities of new pipelines for supply of petroleum products to the Himalayan Nation. We are in talk with Nepal for extension of MAPL to Chitwan in Nepal, laying LPG pipeline from Gorakhpur in Uttar Pradesh to Sunwal in Nepal, product pipeline from Siliguri to Jhapa and another LPG pipeline from Motihari to Chitwan. We are very hopeful that our international pipelines operations will increase in future. We also offer EMPC services for other companies and would be ready to participate in any global opportunities.

What are the challenges ahead?

Reply: Challenges in Pipeline Projects

Project Cost:

For pipeline projects, approximately 30% of the project cost is the cost of steel pipes. The price of steel is exponentially growing sine last 5 years, it has almost doubled. Second factor is the cost of RoW and crop compensation, land rates are increasing all across the country. RoW compensation is paid as per act, which is 10% of the land value. After enactment of LARR act 2013, compensation has become 40% of the land value. That’s four times the compensation used to be paid. Other than this, various State Governments are introducing their own method of fixing land value. States like Tamil Nadu and Kerala have made it mandatory to consider the land rate at 10 times of land rate for paying compensation which make compensation as 100% land rate for only getting RoW. The impact of Row Compensation in recent past has become four times and accounts for about 10% of the project cost. Other than land compensation, method of determining crop value is also different in the states like Tamil Nadu and Kerala. Proportionately, other costs have also increased. 

Increased cost of pipeline projects makes the project economically viable only if the throughput/ demand are significant. Moreover, the impact of COVID has also brought the demand of petroleum products down all across the globe. Throughput numbers are usually on lower side for single product pipelines like LPG Pipelines and ATF pipelines. To overcome this challenge, we started exploring the possibility of combining the requirement of other OMCs and develop pipelines for combined throughput. One such example is Kandla-Gorakhpur LPG pipeline where all 3 OMCs are partnering to develop the infrastructure.

Financing of pipeline projects:

Economics of pipeline infrastructure are under short-term pressure due to the effects of COVID-19 pandemic-related demand reduction and long-term pressure due to the global transition away from fossil fuels.

For oil, the main threat in the coming decade is the prospect of vehicle electrification, as more governments announce transition away from internal combustion engine sales and manufacturers respond by shifting investments toward electric vehicles. Further, intense opposition is being faced by the pipeline operators from landowners and climate activists which is causing the cancellation/ delay of high-profile pipeline projects and is changing perceptions of oil pipelines as a “safe” investment.

However, in case of gas, it is accepted as green fossil fuel and is envisaged as a bridge fuel to a clean energy future. Presently, the share of gas in India’s energy basket is 6.7% which is much lower than the global gas share of 24%. Hence, Government of India (GoI) has decided to enhance the gas supply chain to increase the share to 15% by 2030. We should align ourselves with the vision of the nation and invest ourselves in strengthening the gas infrastructure of the country.

Project Execution:

RoW: Pipeline laying has always been challenging due to different socio-political situations in different parts of the country.  Some political leaders have openly made statements against the pipeline projects. Pipeline laying also has the challenge of interacting with land owners across the entire RoW, convincing them right from issuing intend for RoW notice to closure of RoW. We come across resistance from individuals/ groups in different magnitudes.  In such situations, there is a risk of delay in executing the projects. We overcome such challenges by liaisoning at various levels from individual land owner to state government officials, and authorities at central Govt. level. Pipeline projects can only be completed with support from all the stake holders. Fortunately, Government has created many mechanisms for addressing the pending issues of central PSUs projects including pipeline projects.

Statutory Clearances: Pipeline projects require number of statutory clearances from various authorities, from both centre and state governments to start the pipeline laying work. Some of the statutory clearances are very time consuming due to the process involved in it, for example, Environment clearance, Forest clearance, wildlife clearance, CRZ clearance etc. Timely submission of application and close follow up with the concerned office is essential to meet the statutory requirement.

SV Land: For pipeline projects, intermediate sectionalising valves are required to be installed at an interval of every 8 km to 50 km based on the product it carries. The route of the pipeline is fixed based on various factors we are left with few land options to buy for installation of valves. Convincing the landowner and arriving at a reasonable rate is a challenge. Particularly, for LPG pipelines the requirement of such land is huge. In some of the states, absence of proper land record with the Government offices make it like a deadlock situation for the project execution.

Challenges in Operations and Maintenance

Integrity Management of Ageing Assets:

IOCL has been operating pipelines since 1964. Nearly 23.12% (3,480 km) of the total network of 15,007 km are more than 35 years old, the oldest pipeline is GSPL which is in its 57th year of service. The health condition of all these pipelines is assessed through ILI, CP and Coating health assessment surveys. As per the survey data, all these pipelines are satisfactory.

Areas of concern is that all the old product pipelines are made with low frequency ERW pipes having low fatigue life, therefore, these lines need extra inspection and surveillance.

Centralized Integrity Management System:

Centralized integrity management system (CIMS) was introduced in 2019 in Pipelines Division with an idea to store, integrate and analyses all pipeline integrity related data in a software-based system. To analyze the data, a software system with various assessment modules were introduced. A risk assessment model was developed with a foreign consultant. The model evaluates the probability and consequence of failure along the pipeline. Entire network of pipeline has been analyzed in the system for risk assessment. Apart from above, the inline inspection repairs assessment monitoring and identification of coatings, CP system evaluation and fatigue assessment are also part of the system. A mobile application has also been developed for assistance of persons carrying out repairs of ILI defects.

Faster implementation of Pipeline Intrusion Detection and Warning System (PIDWS)

Pipeline Intrusion Detection and Warning System (PIDWS) is distributed sensing system, which can detect, locate and identify any intrusion attempt along the entire monitored length in real time.

Initially as a Pilot project, system was deployed in PJPL – LPG pipeline of Indian Oil given the high consequences of failure in an LPG pipeline. The system has been installed for 979 km of pipelines and is in progress for another 1,854 km pipelines. Further, 1,208 km is under tendering and 4,401 km is under approval.

Embracing the power of Digitalization

During the India Energy Forum CERAWEEK held in October 2020, Hon’ble Prime Minister had underlined seven critical pillars of India’s energy strategy. One of the key drivers among these seven pillars is “Digital Innovation across all the energy systems”. Digitalisation is crucial for enterprise risk management. As iterated earlier, almost 23% of our pipeline network is more than 35 years old and has outlived its design life. In such a scenario, digital interventions are a must to ensure safe operation of the pipelines.

We are having a lot of systems like leak detection system, RoW monitoring system, Drone monitoring, Predictive analytics, pre-emptive maintenance planning etc. However, the data of all these is scattered. Digital tools like Industry 4.0 will help us in bundling and integration of all the above and much more in a single application which in true sense can benefit us in enterprise risk management.

Being an expert in the pipeline industry, how do you foresee the future of pipelines in India?

Reply: Healthy development of the oil and gas industry hinges on the concurrent development of a commensurate support infrastructure.  Therefore, encouraging investments in ports, petroleum product pipelines, storage terminals etc. forms part of the plan of industry development.  Due to its inherent advantages, pipelines are preferred over other competing transportation modes such as railways and road. Hence downstream Oil & Gas players of the country will be looking for

  • Increasing the coverage of pipelines throughout the country depending, of course, upon relative economics
  • Leveraging the inherent advantages of using pipelines to transport products and enhancing the pipeline infrastructure in product pipelines.
  • Building a sound gas transportation infrastructure to support the projected growth of the gas market. 
  • Increasing the focus on Integrity management.  Many of the operating pipelines are at or beyond their design life, so the challenge is on to maintain and extend the economic service life of these ageing pipelines. Every activity at all stages throughout the life cycle of a pipeline viz., design, material selection, engineering, construction, commissioning, operation & maintenance, decommissioning and abandonment, is to be governed by the overarching principles of safety and integrity. Pipelines are increasingly under the watchful eye of the public, demanding what has been referred to as a Roadmap to Zero Incidents.
  • Future integrity challenges include changes in the use of pipelines, e.g. transportation of CO2 or hydrogen as a result of the increasing focus on the Energy Transition focus.
  • Exploring the possibility of Transporting gaseous hydrogen via existing Natural Gas pipelines in view of the recent push for Hydrogen Economy. Levels. As the Indian Hydrogen Ecosystem will take some time to mature, A low-cost option for delivering large volumes of hydrogen will be to blend the Hydrogen Natural Gas at allowed levels.

(Shilpa Bichitra | Special Edition | 2021)