Oil companies propose laying pipelines along rail tracks

Sarkaritel
By Sarkaritel August 29, 2014 11:58

Oil companies propose laying pipelines along rail tracks


New Delhi, Aug 29 : State-run fuel producing and marketing companies have proposed laying of pipelines along railway tracks in order to avoid the long delay in setting up pipelines to transport crude, petroleum products and gas in the country.

Indian Oil Corp (IOC) Ltd, India’s biggest oil marketer, on behalf of state-run oil marketing, exploration and production companies has requested the government to seek Indian Railway’s help in freeing up land alongside railway tracks to facilitate the laying of pipelines.

”We have proposed a revenue sharing model under which both the Railways and the oil companies can benefit from the scheme. The idea is to use the railways land for a fee and use the land to lay the pipelines,” said UK Dhoot, general manager of project monitoring at Indian Oil.

Speaking at an oil and gas conference organised by India-Tech Foundation, Dhoot said, Indian Oil has a pipeline network of 12,000 km across the country for sourcing crude and supplying petroleum products to and from its 11 refineries, which together have a capacity of 65 million tonnes per annum (mtpa), but has the capacity to transport only 36.6 mtpa.

Laying of pipelines along railway tracks could help lessen the burden of seeking land and environmental clearances for setting up new pipelines across the country, which, he said, is extremely time consuming.

Setting oil pipelines along rail tracks, however, involves some conflict of interests as the Railways stand to lose on its freight revenue from transporting crude and petroleum products.

Railways has a substantial share in the transportation of crude and petroleum products to and from the oil marketing companies, including Indian Oil, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL).

Sarkaritel
By Sarkaritel August 29, 2014 11:58