The IOCL board has given the first stage approval for the project, which is likely to be developed in two stages. In the first stage, the detailed engineering will be done. The pipeline project will see an investment of Rs 10.81 billion and out of it Rs 7.22 billion will be invested in Odisha.
“The products HSD (high-speed diesel), motor spirit and kerosene will be evacuated from the Paradip refinery for delivery at the oil depots”, said P C Choubey, executive director, South Eastern Region Pipelines (SERPL), Bhubaneswar.
IOCL's 15 mtpa capacity refinery at Paradip is spread over an area of 3,345 acres with an estimated cost of Rs 345.55 billion. The refinery can process 100 per cent high sulphur and heavy crude oil to produce various petroleum products like petrol and diesel of BS-IV quality, kerosene, aviation turbine fuel, propylene, sulphur and petroleum coke. It is also designed to produce Euro-V premium quality motor spirit and other green auto fuel variants for export.
Odisha is set to become the first state in eastern India to have all the pipelines in the hydrocarbon chain ranging from crude oil to petroleum products, LPG and natural gas.
IOCL, under the aegis of South Eastern Region Pipelines (SERPL), Bhubaneswar, intends to lay 356 kilometres long first natural gas pipeline in the eastern part of India from Dhamra Port to Haldia and Paradip for the dedicated supply of natural gas to Paradip and Haldia refineries for captive consumption. The proposed pipeline will be built at a cost of Rs 13.45 billion.
Similarly, IOCL will also have two more product pipelines for transportation of petroleum products like high-speed diesel, motor spirit, superior kerosene oil from the Paradip refinery.
It has already commissioned its Rs 18 billion Paradip-Raipur-Ranchi pipeline (PRRPL) for evacuation of products from Paradip refinery while it has started work for laying of its Rs 23.21 billion Paradip-Hyderabad pipelines.
On the transportation of LPG, IOCL is set to commission its proposed Paradip-Durgapur LPG pipeline latest by August this year.
Since 2009, IOCL is also running the Paradip — Haldia crude oil pipeline system to transport oil from Paradip to Haldia and Barauni refineries.