IndianOil launches Paradip-Haldia pipeline at higher cost
New Delhi   05-Apr-2009
Kolkatta: Mr. Sarthak Behuria, Chairman of IndianOil, on Saturday inaugurated the Paradip-Haldia crude oil pipeline system at Paradip. The project included, laying a 330-km long pipeline linking Paradip with Haldia and Barauni Refineries of IndianOil, installation of a Single Point Mooring (SPM) system in the offshore waters of Paradip and a crude oil tank farm consisting of 15 crude oil storage tanks. A near three-year delay in commissioning has escalated the cost of the project by 20 per cent. Scheduled to be completed in March 2006 at an estimated cost of Rs 1,178 crore, the project finally started operating beginning December 2008 at Rs 1,420 crore, up by Rs 242 crore. The delay was caused due to a wide range of issues ranging from technological challenges as well as repeated exit of project contractors, especially on the SPM part. <b>Deeper roots</b> According to company sources, the pipeline will transport 11 million tonnes of crude oil a year to refineries at Haldia and Barauni, improving the refining margin of both the refineries by approximately $1 a barrel. “With the completion of this pipeline our roots in the eastern India will go even deeper by providing efficient and reliable supply chain management of crude oil,” Mr. Behuria said. Claiming the project to be an engineering achievement, Mr. P.K. Chakraborti, Director (Pipelines) said the onshore pipeline along the coasts of Bay of Bengal crossed about 17 major rivers and canals, including the Mahanadi and Baitarani.