S Ganguly Indian Oil Corporation Limited Workshop on ‘Transportation of OIL & GAS through Pipelines’ June 15-18, 2011

Presentation Structure  India : Energy scene  Growth of Pipelines in India  Advantages of Pipeline Transportation  Pipelines Infrastructure in India  Mode wise transportation  Gas Pipelines in India  Future outlook: Pipelines in India

PIPELINES- AN OVERVIEW Oil Industry in India IOCL- An Overview India : Energy Scene

India at 433 MMTOE is the 5 th largest consumer of Primary Energy Primary energy Consumption-Global Source: BP Statistical review 2009 MMTOE

World Energy Consumption MMTOE India’s Energy Basket 2009 Source: BP Statistical review 2009 World India Energy Consumption 433 MMTOE

India 4 th largest consumer of Oil Oil Consumption in India increased at CAGR of 4% ( ) against World CAGR of 1.4% Country Wise Oil Consumption Source: BP Statistical review 2009 MMTOE As on March 2008

Oil Balance AttributesBrazil Russian Fed. IndiaChinaUS Reserves as % of total world 1%5.6%0.4%1.1%2.1% Production as % of total world 2.6%12.9%0.9%4.9%8.5% Consumption as % of total world 3.2% 3.8%10.4%21.7% Import dependence %----76%53%61% Projected Import dependence %90%58% 7 India – placed most vulnerably among basic countries Import dependency expected to rise beyond 90% levels India – placed most vulnerably among basic countries Import dependency expected to rise beyond 90% levels Source: WEO, 2010

Source: Petroleum & Planning Analysis Cell

Refining scenario in India in : Processing of Imported Vs. Indigenous crude Refining scenario in India in : Processing of Imported Vs. Indigenous crude Installed Refining Capacity (as on ): TMTPA

Energy Outlook For India, Sourcing & Positioning of Energy remains a challenge  With 16% of Global Population  0.4% of World’s Petroleum Reserve  10% of World’s Coal Reserves  8-10% GDP Growth Target  4-4.5% CAGR in energy demand

Growth of Pipelines in India.

The first crude oil pipeline in India was laid from Digboi oil fields to Digboi refinery. During , Oil India Limited laid the first trunk crude oil pipeline, 1156 km long from Naharkatiya and Moran oil fields to the refineries at Guwahati and Barauni. The first cross country product pipeline was laid during to transport products from Guwahati Refinery to Siliguri. Realizing unique advantages of oil transportation through pipelines a number of product and crude oil pipelines were laid in the 60’s, 70’s and 80’s, including sub-sea crude oil pipelines Growth of Pipelines in India

The pipelines laid during the 60’s were designed, engineered and constructed by foreign companies. However, the exposure to this technology enabled Indian engineers to gain confidence, and the pipelines which came up later, were designed and constructed with indigenous expertise. India today has over 33,000 km of major crude oil, product and Gas pipelines out of which IOCL owns & operates about 11,000 km of Pipelines. Growth of Pipelines in India

Pipeline Transportation of Liquid Petroleum: Present scenario in India Oil Industry in India has now almost 5 decades of experience in transportation of crude oil and finished petroleum products The crude oil pipelines transport waxy indigenous crude as well as low sulphur & high sulphur imported crude The finished product pipelines transport HSD, MS, SKO, Naphtha, ATF, LPG etc. in multi-product / dedicated pipelines

Growth of Pipeline Length KM YEAR Product Pipelines in India

Growth of Pipeline Capacity MMT YEAR Product Pipelines in India

Advantages of Pipeline Transportation

 Lower cost of transportation  Lower transit losses  Lower energy intensiveness  Economies of scale  Safety and Reliability - minimum disruptions  Environment-friendliness  Multi-product handling

Advantages of Pipeline Transportation  Flexibility  Stationary carrier  Augmentation at low cost  Minimal land costs  Decongestion of surface transport systems Pipelines are the best suited mode for transportation of large volumes of petroleum over long leads.

Typical Advantages of Pipelines

Pipeline Infrastructure in India (Crude & Petroleum Products)

Existing Liquid Pipelines: Industry As on IOCLBPCL # HPCL ## GAILOILONGC ### CairnTotal Industry Length (Kms.) Product Crude Oil Total Capacity (MMTPA) Product Crude Oil Total # Includes Petronet Cochin-Coimbatore-Karur Product pipeline ## Includes Petronet Mangalore-Hassan-Bangalore Product Pipeline ### Source: PPAC

IOCL’s Existing Liquid Pipeline Network Kandla Vadinar Chaksu Mundra Guwahati Bongaigaon Siliguri Digboi Tinsukia Jalandhar Meerut Tundla Najibabad Roorkee Ambala Mathura Kot Sidhpur Ahmedabad Jodhpur Navagam Sanganer Ajmer Dahej Chittaurgarh Koyali Bhatinda Sangrur Panipat Rewari Haldia Barauni Kanpur Lucknow Mourigram Rajbandh Chennai Sankari Asanur Trichy Madurai CBR Product LEGEND Crude Oil PipelineLength Capacity (km)(MMTPA) Product Crude Total Bangalor e Bangalore AFS Paradip Ratlam Chennai AFS Refinery Hazira Gas Bharatpur As on Delhi

BPCL’s Existing Liquid Pipeline Network Guwahati Bongaigaon Siliguri Digboi Tinsukia Jalandhar Bijwasan Ambala Piyala Kota Sidhpur Jodhpur Sanganer Bharatpur Dahej Koyali Bhatinda Panipat Haldia Barauni Kanpur Lucknow Product LEGEND Crude Oil PipelineLength Capacity (km)(MMTPA) Product Crude Total Paradip Indore Chennai Refinery Mumbai As on Delhi Kochi Manmad Karoor Coimbatore Bina

HPCL’s Existing Liquid Pipeline Network Guwahati Bongaigaon Siliguri Digboi Jalandhar Bahadurgarh Ambala Piyala Sidhpur Jodhpur Sanganer Bharatpur Bhatinda Panipat Haldia Barauni Kanpur Lucknow Product LEGEND Crude Oil PipelineLength Capacity (km)(MMTPA) Product Paradip Indore Chennai Refinery Mumbai As on Delhi Kochi Bina Mathura Solapur Pune Visakhapatanam Hyderabad Vijaywada Mundra Bangalore Mangalore

Other’s Existing Pipeline Network NRL Bongaigaon Siliguri Digboi Tinsukia Jalandhar Bijwasan Loni Ambala Piyala Sidhpur Sanganer Bharatpur Koyali Bhatinda Panipat Haldia Barauni Kanpur Lucknow LPG (GAIL) LEGEND Crude Oil (OIL) PipelineLength Capacity (km)(MMTPA) GAIL Product OIL Product ONGC Crude OIL Crude Cairn Crude Paradip Indore Chennai Mumbai As on Delhi Kochi Bina Mathura Solapur Mangalore Visakhapatanam Hyderabad Vijaywada Bangalore Uran Kalol Ankaleshwar Product (OIL) Crude Oil (ONGC) Salaya Barmer Crude Oil (Cairn)

Crude Oil Transportation

CRUDE OIL IN SHIPS FLOATING HOSES CROSS COUNTRY PIPELINE REFINERY TANKAGE UNDER BUOY HOSES PIPELINE END MANIFOLD OFFSHORE / ONSHORE PIPELINE SHORE TANKAGES PUMPING UNITS SPM SYSTEM OIL FIELDS OFFSHORE LINEGATHERING STATION Pipelines System: Crude Oil Transportation

NUMALIGARH 3.0(60,000) Subsidiaries of IOC Refining Capacity: IOCL – 65.7 MMTPA out of – MMTPA MUMBAI BPC-12.0(240,000) HPC-6.5(110,000) MATHURA 8.0 (160,000) GUWAHATI 1.0(20,000) BARAUNI 6.0 (120,000) HALDIA 7.5(150,000) KOCHI 9.5(190,000) Koyali 13.7(274,000) DIGBOI 0.65(13,000 ) NARIMANAM 1.0(20,000) MANGLORE 11.8(236,000) PANIPAT 15.0 (300,000) VISAKH 8.3(166,000) BONGAIGAON 2.35(47,000) CHENNAI 10.5(210,000) JAMNAGAR RIL (660, ,000) ESSAR-10.5(210,000) TATIPAKA 0.08 (1740) PARADEEP 15.0(300,000) BHATINDA 9.0 (180,000) Others New BINA 6.0(120,000) Existing IOC LEGEND IndianOil Group owns 10 out of 20 refineries in India Refineries – Overview Figures in bracket are in terms of BPD Kuddalore 6 MMTPA

IndianOil

Jetty

MATHURA KOYALI VIRAMGAM JAMNAGAR SALAYA CHAKSU RAJKOT S.NAGAR ABUROAD KOT RAJOLA SENDRA SPM 2 SPM 1 PANIPAT SIDHPUR RAMSAR REWARI Salaya-Mathura crude oil pipeline SectionDia (inch) Length (km) Off-shore Line Onshore Line Salaya-Viramgam28435 Viramgam-Koyali28148 Viramgam-Chaksu24716 Chaksu-Mathura24197 Chaksu-Panipat

HALDIA BARAUNI Haldia-Barauni crude oil pipeline SectionDia (inch)Length (km) Paradip off shore line4820 Paradip-Haldia30328 Haldia-Bolpur-Barauni18935 Haldia Docklines48/3619 BOLPUR Haldi a Bolpur Barauni BRPL BONGAIGAON Paradip PARADIP 33

Petroleum Product Transportation

REFINED PRODUCT FROM REFINERIES IMPORTED / OTHER PRODUCT IN SHIP/OIL JETTY PUMPING STATION DELIVERY TERMINAL PUMPING CUM DELIVERY STATIONS OR DELIVERY STATION TANKAGES REFINERY’s PRODUCT TANKAGE Pipelines System: Product Transportation

Digboi Numaligarh Tinsukia Nahorkatiya Guwahati Bongaigaon GUWAHATI REFINERY Guwahati-Siliguri product pipeline BONGAIGAON SILIGURI SectionDia (inch) Length (km) Guwahati-Bongaigaon8162 Bongaigaon-Madarihat8128 Madarihat-Siliguri8145 BETKUCH I MADARIHAT HASIMAR A Siligur i 36

BARAUNI LUCKNOW KANPUR PATNA MUGALSARAI Barauni-Kanpur product pipeline ALLAHABAD Haldia Bolpur Lucknow Kanpur Mugalsarai Allahabad SectionDia (inch) Length (km) Barauni-Patna (New)20110 Patna-Mugalsarai12209 Mugalsarai-Allahabad12161 Allahabad-Kanpur12196 Branch line to Lucknow 1269 BARAUNI REFINERY 37

Product pipelines ex-Haldia refinery SectionDia (inch) Length (km) Haldia-Mourigram12117 Mourigram-Rajbandh12152 Budge Budge branch128 Haldia-Barauni12525 Haldia Rajbandh Mourigram Budge Asansol Barauni HALDIA BARAUNI ASANSOL HALDIA REFINERY RAJBANDH MOURIGRAM BUDGE Bolpur 38

Product pipelines ex-Koyali refinery Koyali Ahmedabad Jodhpur Kot Navagam Sidhpur Sanganer SectionDia (inch) Length (km) Koyali-Ahemedabad8116 Koyali-Sanganer18763 Bareja–Navagam104 Kot-Salawas10111 Baghsuri–Ajmer820 Lasariya-Chittaurgarh12158 Koyali-Dahej14103 Amod-Hazira1294 Koyali-Ratlam16265 KOYALI REFINERY SIDHPUR VIRAMGAM SANGANER JODHPUR AJMER CHITTAURGARH KOT NAVAGAM AHMEDABAD BAREJA DAHEJ HAZIRA RATLAM DAHEJ HAZIR A 39

DELHI PANIPAT REFINERY MATHURA REFINERY SectionDia (inch) Length (km) Mathura-Delhi16147 Mathura-Tundla1656 Mathura-Bharatpur821 Bijwasan-Panipat Naphtha10111 Mathur a Bhatinda Panipa t Jalandhar Delhi Ambala Meerut Tundla Najibabad Rewari TUNDLA MATHURA Product pipelines ex-Mathura refinery BHARATPUR Bharatpur 40

REWARI Product pipelines ex-Panipat refinery SectionDia (inch) Length (km) Panipat-Ambala-Jalandhar14/12267 K’kshetra–Roorkee–Najibabad10167 Panipat-Delhi14112 Sonepat-Meerut1070 Panipat-Bhatinda14219 Panipat-Rewari12155 Panipat-Jalandhar LPG10274 PANIPAT Mathura Bhatinda Jalandhar Delhi Jodhpur Ambala Meerut Tundla Beawar Chaksu Najibabad Kot Sidhpu r Rewar i Sanganer Panipat SANGRUR BHATINDA JALANDHAR NABHA AMBALA ROORKEE NAJIBABAD MEERUT DELHI 41

Chennai Sankari Asanur Trichy Madurai Pipelines ex-Manali refinery & other pipelines in Southern Region SectionDia (inch) Length (km) Chennai -Asanur14256 Asanur–Madurai10270 Asanur–Sankari12157 Chennai -Bangalore14/12290 Bangalore ATF833 Chennai ATF895 Narimanam-Nagpattinam 187 Bangalore Bangalore AFS Narimanam Nagapattinam Chennai AFS 42

Digboi-Tinsukia product pipeline Section (Under Assam Oil Division) Dia (inch) Length (km) Digboi-Tinsukia (Black Oil) 639 Digboi-Tinsukia (White Oil) 836 DIGBOI REFINERY DIGBOI TINSUKIA Guwahati Bongaigaon Siliguri Digboi Tinsukia Nahorkatiya Numaligar h 43

Mode wise transportation of Crude Oil and Petroleum Products.

INDIA Rail 16% USA Road 14% Coastal 18% Pipelines 52% Typical Mode Wise Transportation Crude Oil & Petroleum Products- Industry Dependence on road and rail infrastructure is putting severe strain on these infrastructures. ** Source : Association of Oil Pipelines, * Source : PPAC Haulage – MT-Km basis

Inter-Modal Mix- Industry Vs. IOCL Petroleum products

Inter-Modal Mix for Transportation of Crude Oil- Industry Vs. IOCL As in

Gas Pipelines in India

Gas Transmission Natural Gas Resources Liquefaction Cryogenic Vessels Terminals Like Dahej Cryogenic Truck/ Rail transport Cryogenic Storage tanks End Users Re-gasification Pipelines transport Power / Fertilizer Pipelines transport 49

Existing Gas Infrastructure in India Pipelines LNG Import Terminals CGD CompanyKMs% Share GAIL GSPL RGTIL IOC1321 Others Total CompanyMMT% Share PLL * Dahej 1073 Shell Total CompanyCities (no.)% Share GGCL323 GSPC Gas 820 IGL216 MGL212 GAIL Gas59 GGL* other Entities Total49100 * IOC has a contract for 2.25 MMT at Dahej * IOC’s JV with GAIL 1MMT = 3.62 MMSCMD 50

LNG Terminal Existing Transmission Pipelines Existing Upcoming GAIL’s Planned Pipeline RGTIL’s East West Pipeline RGTIL’s Planned Pipeline Pipelines at EoI stage/ under bidding by PNGRB City Gas/ CNG Existing Planned JAGDISHPUR PHOOLPUR BHATINDA BAREILLY DISPUR DELHI AGARTALA BARODA LUCKNOW PATNA AHMEDABAD RAJKOT KOTA MATHANIA GWALIOR UJJAIN AGRA KOLKATA GAYA BOKARO VARANASI JHANSI HAZIRA 2.5 mmtpa COIMBTORE MUMBAI BHUBANESHWAR KRISHNAPATNAM NELLORE CHENNAI TUTICORIN TIRUCHCHIRAPALLI HASAN BANGLORE KOLHAPUR SOLAPUR KAKINADA (MALLAVARAM) VIJAYAWADA DAMRA DABHOL 5 mmtpa KANJIKKOD AURAIYA Iran-Pak-India Pipeline Turk-Afg-Pak-India Pipeline GOA CUTTACK VIJAYPUR KANPUR NANGAL GURGAUN PUNE BHARUCH SURAT HYDERABAD RAJAMUNDRY BHOPAL KOCHI 5 mmtpa ENNORE 5 mmtpa BARMER MUNDRA 6.5 mmtpa Infrastructure - Existing & Future BHILWARA SRINAGAR jAMMU MEHSANA PARADIP RAIPUR NAGPUR JALGAON Upcoming DAHEJ 10 mmtpa* PipelineGAILRGTILOthersTotal Existing Future (by 2014) Total Length in KM Others include GSPL, IOC, Assam Gas etc. Details * Dahej Expansion to 12.5 MMTPA by

World and India - A comparison Gas Pipeline Spread: (km / 100 sq. km.) 52

Demand - Supply Scenario (Projected) All figures in MMSCMD Projected Natural Gas Demand Domestic Supply RLNG Terminal capacity Deficit , & Figs include firmed up RLNG Terminals & Figs include RLNG Terminals in conceptual stage. Source : MoPNG, Crisil Report & Internal Estimates 53

Gas Supply Scenario (Apr’10 – Jan’11) Domestic GasRLNGGas Market CompanyQty% Share ONGC + OIL 5644 RIL 5644 Others 1512 IOC 00 Total CompanyQty% Share PLL IOC GAIL BPCL GSPC+ Others Shell2 6 Total32100 CompanyQty% Share GAIL 8352 RIL 5635 GSPC + Others 9.36 IOC BPCL Total Quantities in MMSCMD 1 MMSCMD = 0.33 mtoe 54 Source : PPAC

Existing and upcoming LNG Terminals in India LocationCompanyCapacity in MMTPA Status DahejPetronet LNG LTD (PLL) 10Capacity expansion to 15 MMTPA by 2013 HaziraSHELL2.5Expansion to 5.0 by 2015 DhabholRGPPL2.5Start up by 2012 KochiPetronet LNG LTD (PLL) 2.5Commissioning by 2012 EnnoreIOCL5.0Commissioning by 2015 MundraM/s Adani6.0Commissioning by 2015 Dhamra, OrissaIOCL & Others5.0Commissioning by 2016 MangaloreONGC Ltd2.5Commissioning by 2016

Transnational Pipelines Iran – Pakistan – India Gas Pipeline Planned as Joint project with Iran & Pakistan. Iran and Pakistan not allowing participation in pipeline project with in their territory. Around 2100 KM and $7 billion. Gas for India : 30 MMSCMD Unresolved issues with Iran & Pakistan - Mainly security of supplies Turkmenistan- Afganistan – Pakistan – India Gas Pipeline Approx 30 MMSCMD import for India. Mainly driven by ADB. No issue of security of supply as it is integrated project to be managed by international consortium. IOC as co lead partner is being considered finally by MoPNG Sub-Sea Pipeline from Middle East(Oman) to India 85 MMSCMD. At present at concept stage 56

Future outlook: Pipelines in India

 India is a vast country endowed with quite a large area. It may be ideal to inter link its different corners by means of pipeline networks  With the growing demand of petroleum products & Gas throughout the country, establishment of Oil & Gas pipeline networks for petroleum transportation is the only alternative, leaving railways to cope with the enormous task of handling ever-increasing passenger and goods traffic.  Indian oil industry has identified a number of crude oil and product pipelines that can be taken up for implementation in future. Future Outlook for Pipelines in India

 Growth potential of pipelines in India itself is immense. India is now 5th in terms of length of Oil & Gas pipelines after USA [588,376 km], Russian federation [235,145 km], Canada [113,025 km], China [48,911 km] and India [32,476 km].  As per Hydrocarbon Vision 2025, the transportation requirement for the petroleum products are projected to rise significantly in the years to come.  It is expected that the total length of Oil and Gas pipelines in India will double in next ten years. Source: EnergyTrack Future Outlook for Pipelines in India

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