Bharat Petroleum Corporation Limited (BPCL) is planning an over 450-km petro product pipeline from Krishnapatnam in Andhra Pradesh to Hyderabad, a facility to augment fuel supplies in one of the fast, industrially developing areas.
The State-owned firm had submitted an expression of interest, as required of entities proposing such projects, recently to Petroleum and Natural Gas Regulatory Board (PNGRB).
The pipeline, estimated to be 455-km. long, is expected to deliver multiple benefits. Serving as backbone for BPCL to grow its market in Telangana and Andhra Pradesh, it will reduce the dependence on Hindustan Petroleum Corporation’s Vishakapatnam refinery and 572-km long, 5.38 million tonne Vizag-Vijayawada-Secunderabad pipeline.
Both BPCL and IOC rely heavily on HPCL refinery and pipeline to supply petrol, diesel and kerosene in Telangana. Indian Oil Corporation is also laying a product pipeline from its Paradip refinery in Odisha to Hyderabad. The Krishnapatnam-Hyderabad pipeline through Ongole in Andhra Pradesh will be crucial for utilising the enhanced capacity of BPCL’s refinery in Kochi, Kerala.
A BPCL official, who did not wish to be identified, said evacuation of products has assumed greater significance post the integrated refinery expansion project in Kochi that took the capacity to 15.5 million tonne from 12.4 MT.
Thus, the plan of the company is to move the products, primarily petrol and diesel, coastally from Kochi to Krishnapatnam and from there onwards use the pipeline. Other options such as sourcing products from its Mumbai refinery or import them will also be available. Such pipelines are an efficient, faster alternative to movement of products by road and help cut down on carbon footprint. At Krishnapatnam port, BPCL has already set in motion the process of establishing a coastal POL terminal with an estimated investment of around Rs. 700 crore.
The investment estimates for the pipeline were being worked out, the official said, adding the proposed facility would help maintain and enhance supply of products.
“Supply for this area is always a problem for BPCL. That will get resolved,” he said.
The company proposes to set up a POL terminal in Hyderabad, while the pipeline would connect the existing POL depot in Ongole. Bharat Petroleum estimates the demand for white oil petroleum products, supplied through its facilities in Ongole and Hyderabad, to be 1500 thousand metric tonnes per annum in 2022-23 and 1700 TMTPA in 2025-26. The volume proposed to be moved over the pipeline is 1875 TMTPA and 2125 TMTPA respectively.
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