Pipeline Transportation of Oil & Gas Past, Present & Future

Transcription

1 Pipeline Transportation of Oil & Gas Past, Present & Future A Presentation By Pulak Jyoti Sarma Chief Engineer(Pipeline Maintenance) Oil India Limited Pipeline Department Guwahati

2 What a Pipeline is The term pipeline in the broader sense means a facility used to transport goods from point of receipt to the point of delivery. Pipelines are an ancient technology that has served many different civilizations in different regions. They were -and still are- part of the development and progress of society in a contemporary way. Pipelines are contributing towards progress and economic development of countries in a silent but significant way.

3 HISTORICAL DEVELOPMENT OF PIPELINE Pipelines were used for water supply in Middle East in the Christian era. Bamboo pipes were used in China around 5000 BC. Pipes made of clay or stone were widely used in the ancient civilisation of Egypt, Mesopotamia and Rome. The chief purpose of pipeline, however, was to supply water from the productive reservoirs to the consuming areas.

4 HISTORICAL DEVELOPMENT OF PIPELINE In course of time discovery and use of petroleum, however, ushered in a new era in pipeline use. Pipelines, in their present role of oil and gas transport has existed over a century. The modern era research and technological development has made it possible to use pipelines in diversified areas beyond hydrocarbon industry.

5 DIFFERENT TYPES OF PIPELINES Energy Pipelines Oil Pipeline Gathering pipeline --Trunk pipeline Gas Pipeline -- Product Pipeline Water Pipelines Sewerage Pipeline Slurry Pipeline Pneumatic Pipeline Pneumatic Capsule Pipeline Hydraulic Capsule Pipeline Coal log pipeline Other pipelines for transporting chemical substances --for transporting biomass

6 Segments of Hydrocarbon Industry Upstream :-Exploration and production of Oil and Gas MID STREAM :- Storage and Transportation DOWNSTREAM:- Refinery and Petrochemicals

7 MIDSTREAM STORAGE Tankage TRANSPORTATION Pipelines Road Tankers Rail Tankers Water Carriers Pipeline is an important component in the midstream of hydrocarbon industry.

8 ADVANTAGES OF PIPELINE TRANSPORTATION Advantages Pipelines over the other modes of transport for supply of petroleum products: It is a safe and reliable mode of transport system. It is an economical and high reliable mode of transport. It provides a long term infrastructural option. It can handle large volume of products.

9 ADVANTAGES OF PIPELINE TRANSPORTATION Minimum transit loss. Multi-product transportation In pipeline transport there is no empty return with dead load. Pipeline reduces road congestion and road damages The pipeline is hardly effected by natural calamities like flood, earthquake etc.

10 ADVANTAGES OF PIPELINE TRANSPORTATION Land cost is minimum because once pipeline is buried the land can be restored back for use. Energy consumed per unit distance per unit weight of products moved by pipelines is comparatively much less than railways. Environmental impact of pipelines is relatively less as compared to other modes of transportation system.

11 DISADVANTAGES OF PIPELINE TRANSPORTATION Establishing a Pipelines transport system is highly capital intensive. A pipeline system is inflexible A pipeline system has a limited capacity. Though the width of pipeline Right-of-Way / Right-of-Use the land cannot be used for any other construction.

12 HYDROCARBON INDUSTRY AND PIPELINE The first cross-country oil pipeline was laid in Pennsylvania in 1879 from Bradford to Allen town, about 109 miles long and 6 inches in diameter. Long distance pipeline transportation got a boost during World War II when coastal tanker traffic was disrupted. Discoveries of giant oil fields in remote parts of the world led to planning and execution of correspondingly larger pipeline networks. Pipeline industry has grown in parallel with the development of world oil industry.

13 HYDROCARBON INDUSTRY AND PIPELINE Pipeline is an established mode of transportation in the hydrocarbon industry worldwide for decades. Pipelines are used to transport Crude Oil, Refined Petroleum Products (HSD, SKO, MS, ATF, Naphtha, Black Oil, FO, LDO), Petrochemical Products, Chemicals, LPG, Natural Gas, any other Gas.

14 TYPICAL PIPELINE NETWORK IN HYDROCARBON INDUSTRY

15 HYDROCARBON INDUSTRY AND PIPELINE Energy pipelines are categorised into three groups:- Gathering pipelines Transportation pipelines Distribution pipelines Gathering pipelines:-group of interconnected pipelines of transporting crude oil/well fluid or natural gas from producing fields to a treatment plant or processing facility. Gathering pipelines are rather shorter in length and small in size.

16 HYDROCARBON INDUSTRY AND PIPELINE Transportation pipelines :- Pipelines meant for bulk transportation of crude oil, gas, and refined products to various locations either for processing or for further distribution. Distribution pipelines :- Pipelines with relatively small diameters meant for delivering the products to the consumer location.

17 COMPONENTS OF A TRANSPORTATION PIPELINE SYSTEM Pipe, Valves, Scraper traps, Insulating flanges, Flow tees, Fittings, Flanges Other equipment attached to the pipe, Compressor station stations (for gas lines), Pumping stations (for liquid lines), Metering and regulating stations, Delivery stations, Intermediate pigging stations, Sectionalizing valve stations Tap-off points.

18 DEVELOPMENT OF HYDROCARBON PIPELINE IN INDIA Due to the low consumption of POL (Petroleum-Oil-Lubricants) in the initial years of post-independence most of the earlier refineries in India were installed at coastal locations depending on coastal movement of crude oil. Further, the refining capacities being low, the products were either consumed locally or transported to the consumption centres by rail or road. Traditionally rail network has been quite widespread in India and the pipelines relatively came into focus quite late. After 1960, most of the refineries were installed in landlocked locations and crude & product pipelines were promptly laid.

19 DEVELOPMENT OF HYDROCARBON PIPELINE IN INDIA The first crude oil pipeline in India was laid from Digboi oil fields to Digboi refinery. However, the inherent advantages associated with pipeline were soon realized by users as well as government and this led to development of this industry. Subsequently, a number of product and crude oil pipelines were laid in the 60 s, 70 s and 80 s. Gas pipelines have come into the scene from late eighties.

20 DEVELOPMENT OF HYDROCARBON PIPELINE IN INDIA In India, OIL (Oil India Limited) laid the first fully automated 1157 km long cross-country pipeline of South- East Asia during The first cross-country product pipeline in India was laid by Indian Oil Corporation Limited during to transport products from Guwahati refinery to Siliguri. Both the pipeline systems are still in full operation.

21 DEVELOPMENT OF HYDROCARBON PIPELINE IN INDIA The Salaya-Mathura Pipeline (SMPL) was built in 1978 to transport imported as well as indigenous crude oil to two refineries of Indian Oil Corporation Ltd (IOCL) in Gujarat and Mathura in Uttar Pradesh. This pipeline was later extended to feed IOCL s Panipat Refinery in Haryana. The country s first single point mooring system was built in Vadinar village in Gujarat coast for SMPL in.

22 DEVELOPMENT OF HYDROCARBON PIPELINE IN INDIA Assam Gas Co. started gas pipeline network in Assam to distribute gas produced by OIL the power plants, industries and households since sixties. India s first cross country gas pipeline km Hazira- Bijaipur-Jagdishpur (HBJ) network of was executed and commissioned by GAIL (India) Ltd in 1987 with a gas transportation capacity of 18.2 MMSCMD mainly to link the gas sourced from Bombay South Basin offshore field. Since expanded the HBJ Network now serves the states of Gujarat, Rajasthan, Madhya Pradesh, Uttar Pradesh, Delhi and Haryana.

23 DEVELOPMENT OF HYDROCARBON PIPELINE IN INDIA The Dahej-Vijaipur pipeline (DVPL), the India s first pipeline to carry LNG. It was constructed by GAIL. The 42 inch 770 km long onshore pipeline has capacity of 24 MMSCMD. LPG pipeline network In the country has increased to nearly 2500 km

24 DEVELOPMENT OF HYDROCARBON PIPELINE IN INDIA The East-west pipeline (EWPL) is one of the largest pipeline project executed in India This pipeline had been implemented by Reliance Gas Transportation Infrastructure Ltd (RGTIL) to transports gas from Reliance Industries Ltd RIL s prolific Krishna Godavari Basin KG Block to the four States of Andhra Pradesh, Karnataka, Maharashtra, and Gujarat. The 1,385 km long 48 inch diameter EWPL network has a capacity transport 80 MMSCMD of gas.

25 DEVELOPMENT OF HYDROCARBON PIPELINE IN INDIA Cairn India s 670 km long 24 crude oil onshore pipeline Mangala Development Pipeline (MDP) is the world s longest continuously heated and insulated pipeline. This crude oil pipeline is using Skin Effect Heat Management System (SEHMS) to ensure that the crude oil remains above the Wax Appearance Temperature (WAT). Through out the pipeline.

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27 EAST WEST GAS PIPELINE OF RGTIL

28 PIPELINE INFRASTRUCTURE IN INDIA Presently, India s hydrocarbon pipeline infrastructure as in the year 2012 :- 19,300 km for crude oil 16,293 km for gas 15,903 km for products.

29 PIPELINE INFRASTRUCTURE IN INDIA Total length of crude oil trunk pipeline 9,537 km Total Capacity 138 mmt Total length of trunk pipeline for Refined product 11,218 km Total capacity of 76.3 mmtpa FY12 LPG pipeline network by length 2,312 km- FY12

30 PIPELINE INFRASTRUCTURE IN INDIA At present the total gas trunk pipeline network in India is more than 10,000 km. Gas Authority of India Ltd (GAIL) approximately 7,850 km trunk pipeline with capacity to carry 150 MMSCMD gas RGTIL owns and operates East-West pipeline network of 1,385 km length and capacity of 80 MMSCMD GSPCL has trunk pipeline network of approximately 1,070 km

31 ONGC GAIL INDIA Pipeline Operating Companies in India Leading National Oil & Gas Exploration Company of India ONGC owns and operates 8000 km onshore 4500 km offshore pipelines net work in its production areas. Major PSU with Largest Gas Pipeline Network Indian Oil Corpn Ltd (IOCL) Hindustan Petroleum(HPCL) Major Transnational, Diversified, Integrated energy Company of India. IOCL operates a 11,163 km network of crude, gas and product pipelines, with a capacity of 1.6 mbpd. This is around 30 per cent of the nation s total pipeline network. Major PSU, Leading Refining & Marketing Company Bharat petroleum(bpcl) Major PSU, Leading Refining & Marketing Company Oil India Ltd (OIL) Gujarat State Petroleum Corpn (GSPC) Reliance India Ltd (RIL) Cairn India PSU, Oil & Gas Exploration and Transportation Company Vertically Integrated Energy Company across India & overseas Activities span exploration & production of oil & gas, refining, marketing and petrochemicals Owns & operates EWPL Largest private sector producer of oil Owns & Operates MDPL

32 Pipeline Engineering Consultants Engineers India Ltd Leading Design Consultant providing onshore and offshore development services Larsen & Tourbro Onshore/offshore Engineering Wood Group (JPK) Piping Engineering Bachtel Corporation Engineering Consultant & Project management

33 SHARE OF PIPELINE IN HYDROCARBON TRANPORTATION IN INDIA Presently modes of hydrocarbon transportation in India (% share) are nearly as below (fig of 2010):-- Pipelines 32% Road Tankers 32% Rail Tankers 26% Water Carriers 10% There is much more to be done to develop the hydrocarbon pipeline infrastructure in the country.

34 INDIA ENERGY SCENERIO India currently is the world s seventh largest energy producer, accounting for about 2.5% of the world s total annual energy production. But, India is the fourth largest energy consumer and is slated to become the third largest by the year This implies that India needs to increase her energy supply by 3 to 4 times over the next two decades. An adequate supply of energy at affordable prices is critical to our economic growth.

35 INDIA ENERGY SCENERIO As per the World Energy Outlook 2011, US Energy Information Administration(IEA) has projected India s energy demand in 2035 at 1,464 Mmtoe from 559 Mmtoe in The projected respective shares of different sources of energy are as follows :--- Coal--42%, Oil--24% Natural gas --11%, Nuclear, hydro and renewable sources put together would account for just 7%.

36 INDIA ENERGY SCENERIO Therefore, fossil fuels are expected to continue with major share in fuelling India s economic growth. Natural gas, with its inherent advantages over other alternatives, is expected to emerge as the preferred fuel. India is looking towards substantially increase its domestic gas production. But indigenously India produces only 33% of the petroleum oil requirements and the rest 67% are met by imports.

37 INDIA ENERGY SCENERIO Hydrocarbons Vision 2025 *To assure energy security by achieving self-reliance through increased indigenous production and investment in equity oil abroad. *To enhance quality of life by progressively improving product standards to ensure a cleaner and greener India.. To develop hydrocarbon sector as a globally competitive industry which could be benchmarked against the best in the world through technology upgradation and capacity building in all facets of the industry.

38 INDIA ENERGY SCENERIO Development of the energy sector and particularly the hydrocarbon space has been given particular attention by the Government in the 12th Five-year plan. There is urgent need to bridge the ever-increasing gap between demand and domestic supply of energy. With this in mind, Government is encouraging domestic and global companies to explore potentially hydrocarbonrich areas in the framework of a stable and enabling policy environment.

39 INDIA ENERGY SCENERIO India has become a refining hub for crude oil refining capacity exceeds the demand. Besides meeting domestic demand India has also embarked on exporting refined petroleum products. Total crude throughput of refining sector rose from mmt in FY06 to mmt in FY12. The sector s total installed capacity was mmt in FY12, up by13.7 per cent from the previous fiscal year.

40 INDIA ENERGY SCENERIO But there is huge gap between demand and domestic production of oil and gas. WHEREAS India has an estimated sedimentary area of 3.14 million sq km, comprising 26 sedimentary basins. As per the statistics of the Directorate General of Hydrocarbons (DGH), at the end of FY about 34% of the total sedimentary area was either unexplored or poorly explored. Experts feel that India holds immense potential for hydrocarbon discoveries.

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42 INDIA ENERGY SCENERIO NELP was approved by the government in 1997 it kicked off in January 1999 in an effort to boost hydrocarbon exploration in the country. Under NELP, the government allocates rights to explore hydrocarbon blocks through a bidding process and has done this in nine phases so far for 360 blocks. Besides sedimentary blocks, GoI is also opening up of new unexplored areas for future exploration and development of non-conventional hydrocarbon energy sources such as coal bed methane (CBM) and futuristic hydrocarbon energy resources such as gas hydrates and oil shale.

43 INDIA ENERGY SCENERIO This approach is beginning to bring in rich dividends: During the period to ,India s crude oil reserves increased at a CAGR of 0.27% while the natural gas reserves increased at a CAGR of 6.5%. The reserves growth in natural gas was on account of the significant gas discovery made by RIL in the KG-D6 block on the east coast of India. Cairn India has discovered the Mangala field in Rajasthan and production is already touching 9.0 MMTPA.

44 INDIA ENERGY SCENERIO Oil and Natural Gas Corporation (ONGC) envisages a total crude oil production of MMT by 2030,mostly from offshore. The company is trying to improve the recovery rate by 40% by ONGC has put the remote state of Tripura in the hydrocarbon map of India and proper utilisation of the stranded gas is lifting the economy of the state. The CBM production grew more than 100% over the last year and currently stands at little over 80 MMSCM (2.8 BCF) per annum. CBM production is expected to increase over the years on account of the monetisation of discoveries made by Essar Oil Ltd and Reliance Industries Ltd (RIL).

45 INDIA ENERGY SCENERIO Majority of these block are offshore and hence there has been a surge in demand for greater offshore pipeline capacity to bring these supplies, both oil and gas, to market. Also there are onshore blocks in geographically challenging areas from where the produce are to be brought out for utilisation.

46 INDIA ENERGY SCENERIO Creating safe, economic and efficient transport network for liquid and gaseous hydrocarbons is an essential prerequisite for gainfully utilising the oil and gas from all the exploration blocks. Therefore, the Indian Government s India Hydrocarbon Vision 2025 for the oil & gas industry has created more onshore and offshore pipeline projects, both national and transnational.

47 INDIA ENERGY SCENERIO Besides the pipelines already in operation there are good number of pipelines which are under different stages of construction. There are also pipeline projects which have been approved and lined up for execution. National Gas Grid has also been planned by Petroleum and Natural Gas regulatory Board(PNGRB) the regulatory authority for midstream and downstream

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50 INDIA ENERGY SCENERIO But creating the midstream infrastructure is highly capital intensive. It also requires resources such as Right-of Way(RoW) and /or Right-of Use(RoU) obtaining which is becoming a difficult proposition. Therefore, under the policy for the development of petroleum product pipelines the concept of Common User Principle have been mooted.

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52 International Pipeline Opportunities In addition to the various pipeline projects being developed within the country, the GOI is trying to strike alliances to import piped gas from gas-rich countries in the vicinity, such as Iran and Turkmenistan in central Asia, Qatar and Oman in West Asia and neighboring Myanmar/ Bangladesh.

53 International Pipeline Opportunities India has considered the following proposals for international pipeline connection with other countries: Iran-Pakistan-India (IPI) Gas Pipeline Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline Bangladesh India Onshore Gas Pipeline Imports from Myanmar (Particular interest for NE)

54 Proposed Iran-Pakistan-India Onshore Gas Pipeline

55 DAYS AHEAD We look forward to days when the country will be energy secured, more and more energy pipeline will crisscross the country thereby bringing energy to the door of every household and every industrial premise. We look forward to days when there will be equitable distribution of energy across the country which, in turn, will usher in an era of equitable economic growth and the NE region will march equally with all states of the country.

56 Thank You

57 References 1. Asia Pipeline Features Pipeline Perspective on India India Hydrocarbon Vision-2025 of Govt of India 3. India :Oil and gas Sector Report -August 2013 (Presentation Transcript) Source US-EIA & MoPNG 4. Historical Development of The Pipeline as a mode of Transportation Article by M.O.Lawal Professor 5. PetroTech website.

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