CHANGING DYNAMICS

OIL & GAS PIPELINE

BY: K. K. Sinha, CEO & Director

Essar Ports Limited

10/5/2011

CONTENTS

Introduction

Present Scenario and Growth

Technological Developments

Regulations

Issues and Challenges

Conclusion

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INTRODUCTION

First pipeline in history was installed for transporting the Cir, during old
Italy/Greece civilization.

A 31 KM brine line in Reichenhall and Traunstein in Germany, built between 1617

and 1619

The first potable water pipeline of 30 Km length built in 1860 in Australia.

Discovery of Oil resulted in development of pipelines for transporting Oil

Pipeline is the most economical and eco-friendly way of transporting liquid and
gaseous fluids.

Pipelines needs Huge investment and therefore the Focus is on Project Cost
Reduction and safe and efficient operation. Technological developments support the
same.

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PRESENT SCENARIO AND GROWTH

Around 6200 Km of Crude, 10600 Km of Product and 2200 Km of LPG Pipeline

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PRESENT SCENARIO AND GROWTH

India had around 6200 Km 93 MTPA of Crude, 10600 Km 66 MTPA of Product

and 2200 Km- 4 MMTPA of LPG Pipeline cross country pipeline as on March 2010.
Besides we have around 10,800 km with capacity to carry 270 million standard cubic
metres of gas per day (mmscmd).

India is net importer of Crude, and exporter of Petroleum Product,- with Present
Refinery capacity of around 184 MMTPA. Further addition at Bhatinda, Vadinar, Bina
and Paradeep

Natural gas, almost negligible at the time of independence around 47.51 billion
Cubic meters in 2009-10 further going up.

Major pipeline projects are underway, which will add another 7,450 km and 248
mmscmd to our gas transport infrastructure.

International Gas pipeline from Iran to India via Pakistan is also planned but it
depends upon the Political situation.

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PRESENT SCENARIO AND GROWTH

The City gas distribution (CGD) is a fastest growing segment in the natural gas
industry in India

Analysts say that CGD sector currently consumes 5-6 per cent of the total available
gas, but is set to quadruple in a few years.

PNGRB expects the city gas distribution network to spread to 100 cities by the end of
the Eleventh Five-Year Plan (2012).

Presently, gas demand exceeds supply by 30 per cent and further rising sharply.

Coal Based Methane (CBM) production has already started and will
important role as one of the prime energy sources in near future

Shale Gas can be another source of energy in future for India. Schlumberger, has
pegged the reserves of gas in shale deposits across the country at 300 times higher
than KG basin

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play

an

PRESENT SCENARIO AND GROWTH

Once Shale Gas gets is produced , it will lead to huge demand for corresponding
pipeline network

Above clubbed with sustained GDP growth the pipeline network and capacity
specially the Gas pipelines is poised to grow substantially

Technological developments in Construction and Operation of pipelines should be

adapted by industry to support the growth

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TECHNOLOGICAL DEVELOPMENTS
Construction:
Automatic Welding:
Designed to outfit pipeline welders with a seamless,
rugged solution for pipeline welding, resulting in

Increase of Production rate

Quality improvement

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TECHNOLOGICAL DEVELOPMENTS

Automatic Ultrasonic Testing:

Automatic Ultrasonic testing delivers instant online

NDT results

Avoid Health Hazard of Radiography

Works in vicinity do not get affected,

overall construction time.

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reducing

TECHNOLOGICAL DEVELOPMENTS
Horizontal direction drilling (HDD):

HDD facilitates crossings of huge water bodies and other structures falling in pipeline
routes.

Particularly useful the linkage of offshore with onshore plants

HDD Offshore Application

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TECHNOLOGICAL DEVELOPMENTS
Coating of pipeline:

Introduction of polyethylene and poly propylene coating of pipeline has increased the
life of pipeline.

Sleeve coating has significantly reduced the field coating application time.

Vacuum drying of pipelines:

Old methods like running a pig train and super drying are being phased out by
Vacuum Drying.

For Vacuum Drying the pipelines are brought to 4-5 Torr ( 1 Torr = 1.3 mbar),
reducing the moisture content to Dew Point of -5 Deg C, the desired value for
introducing gas in the pipeline.

Cost effective in comparison to Pig Train and super drying.

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TECHNOLOGICAL DEVELOPMENTS
Operation:
Intelligent pigging of pipeline:

Intelligent pigging helps in determining the present health and balance life of pipeline.

Assists in determining flaws developed in the pipeline, in turn helps

disastrous incident.

to avert

Tubelining Technology :

Delivers a harden, corrosion resistant thick-film coating on the inside surface of

existing buried pipe

The process is good to add significant strength to heavily corroded/pitted pipelines. a

Potential to provide operators a low-cost alternative to pipeline replacement. Can be

evaluated and implemented as per the requirement

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TECHNOLOGICAL DEVELOPMENTS
New Technology to Reduce Oil Transportation Costs via Viscosity Reduction

Viscosity reduction can improve the flow ability and rate thereby reduction in energy
consumption., thereby the cost

Traditionally Viscosity reduction is achieved through heating the crude especially in

heavy / waxy crude.

Research shows that using electromagnetism, with an innovative in-line device short,
precise electric pulse when bursts in the fluid flow, can reduce the Viscosity

It takes around 12 Hrs for the oil to come to its original Viscosity.

Flow increase by around 10 percent

Still under field trials . Can be an alternative method for viscosity reduction when the
technology becomes proven in future.

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POLICY AND REGULATIONS

Laying of Pipelines is governed by Petroleum and Minerals Pipeline Act 1962

In Nov 2002 Govt. of India issued guidelines for laying Petroleum Product Pipe
Lines, wherein Pipeline were categorized and captive usage Pipeline and common
usage.The procedure for installation of Common usage Pipelines was announced.

The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under
The Petroleum and Natural Gas Regulatory Board Act, 2006 notified via Gazette
Notification dated 31st March, 2006.

In Dec06, MOPNG announced policy for Development of Natural Gas Pipelines and
City or local Natural Gas distribution Networks with a objective promote investment
from public as well as private sector

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POLICY AND REGULATIONS

Regulations have a significant bearing on investment flow in infrastructure

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ISSUES AND CHALLENGES

Timely completion of pipeline Project largely depends on the Land ROU/ Acquisition,
environment/ forest/ CRZ clearance etc.

Leak due to corrosion, accidents, theft and sabotage is a challenge during Operation

Repair of leaks is also an issue, especially in remote areas, submerged and densely
populated City areas. On Line repairs are used to rectify the leaks emptying out is
very difficult.

Non availability of consolidated Drawing of all facilities in City Gas distribution

pipelines is a major hurdle .

Multiple agencies like Municipality, P&T, Electricity Boards etc. thereby several
clearances for City Gas distribution Pipeline

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CONCLUSION
Pipeline owners/operators to critically examine every aspect of pipeline
development

including

Design/Engineering,

cost

of

procurement,

construction and safe operation to reduce the overall cost of transportation.

This will allow long term sustenance of pipeline as the most preferred mode
of transportation.

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