VISAKHA VIJAYAWADA SECUNDERABAD PIPELINE GREENCO BEST PRACTICES

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1 VISAKHA VIJAYAWADA SECUNDERABAD PIPELINE GREENCO BEST PRACTICES

2 HPCL VVSPL - BEST PRACTICES MATERIAL CONSERVATION 1. INTRODUCTION OF HPCK IN PIPELINE 2. EX-VIJAYWADA PUMPING FOR CAPACITY UTILIZATION

3 CORPORATE AND UNIT PROFILE: HPCL-VVSPL Mumbai Bathinda HPC L Fortune 500 Company VVSPL Multiproduc t Pipeline Refinery Marketing Market Share 23.5% in India 572 Km pipeline with capacity of 5.38 MMTPA Vizag Pipelines LPG Terminals Direct Sales Retail Outlets

4 GREENCO. JOURNEY OF VVSPL Oct 14 Jan 15 June 15 June 15 November15 Mar 16 April 16 Certified ISO 9001/14001/50001 Commitment and Goal Setting For GreenCo Awareness and Competency Development of Policies Appointment of Teams and Champions Greenco Roll Out with CII Project Implementation & Review Assessment by CII

5 Mathura Jullunder PL Length = 526 Kms Dia = 16 / 14 / Capacity = 3.7 MMTPA Koyali Sidhpur Sanganer Pipeline Length = 751 Km Dia = 18 Capacity = 4.1 MMTPA Mundra-Delhi Pipeline Length = 1050 Kms Diameter = 18 / 16 Capacity = 5 MMTPA Mumbai-Manmad-Indore Delhi Pipeline. Length = 1338 Kms Dia = 18 / 14 / 16 / 8 Capacity= 4.3 MMTPA KANDLA PALANPUR MUNDRA JODHPUR Vadinar BHATINDA BAHADURGARH REWARI AJMER SIDHPUR KOYALI JULLUNDER SANGRUR PANIPAT MATHURA KANPUR PIPELINE MAP OF INDIA MAJOR PRODUCT PIPELINES LUCKNOW Barauni-Patna-Kanpur- Lucknow Pipeline Length = 626 Km Dia = 20 / Capacity = 3.5 MMTPA SILIGURI BARAUNI HALDIA GUWAHATI Guwahati - Siliguri Pipeline Length = 435 Kms Dia = Capacity = 0.82 MMTPA Haldia-Barauni Pipeline Length = 525 Kms Dia = Capacity = 1.25 MMTPA Visakh Vijayawada Secunderabad Pipeline. Length = 572 Kms Dia = 18 /16 /14 Capacity= 5.38 MMTPA Mumbai - Pune - Miraj Solapur Pipeline. Length = 161 / 182 /161 Kms Dia = 14 /12 Capacity= 3.67 MMTPA MIRAJ MANMAD VISAKHAPATNAM Chennai Tiruchi Madurai Pipeline. Length = 683 Kms Dia = 14 /12 /10 Capacity= 1.8 MMTPA Mangalore Bangalore Pipeline VIJAYAWADA Length = 364 Kms Dia = 20 / 24 /20 Capacity = 5.6 MMTPA Mangalore MBPL Cochin-Coimbatore-Karur Pipeline Length = 292 Kms Dia = 18 / 14 Capacity = 3.3 MMTPA COCHIN KARUR TIRUCHI MADURAI EXISTING PL UNDER CONSTN IOCL BPCL HPCL PETRONET

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7 VVSPL OPERATIONS - BRIEF Multi product high pressure pipeline Telescopic 18 /16 /14 Boosting & terminal Facilities at Vizag, Rajahmundry, Vijayawada and Suryapet Products Handled MS(Petrol)/HSD(Diesel)- BS3 & BS4, SKO & ATF 24 / 7 Operation and Control through PLC, SCADA & APPS H T powered High capacity pumps Batch operation with continuous Interface Tracking VIZAG VIJAYAWADA SEC BAD 18 Dia 16 Dia 14 Dia RAJMUNDRY SURYAPET

8 INTERFACE TRACKING SKO S = 1500 FBP = 280 M S MOTOR SPIRIT HSD HIGH SPEED DIESEL SSKO SWEET SUPERIOR KEROSINE OIL

9 CASE 1: INTRODUCTION OF HPCK BS4 Transportati on entails usage of Sweet Kerosene Older Visakh Refinery not ready to produce required SSKO. Refinery, VVSPL & QC together came for alternatives. New variant of SKO christened HPCK (HP Pipeline Compliant Kerosine) Blend tests results evaluated jointly by stakeholders Intermediate Process streams CDU & DHT identified for blend to develop suitable plug

10 PROJECT TRIGGER Cost & Availability of SSKO Implementa tion of BS4 grade in Telangana Large SKO Inventory (1700KL/Batch) at Secunderabad Supply-demand imbalance

11 HPCK AS INTERFACE HPCK S=200 FBP = 225 M S MOTOR SPIRIT HSD HIGH SPEED DIESEL HPCK HP PIPELINE COMPATIBLE KERSINE

12 UNIQUENESS OF CONCEPT Industry Quality Manual prescribes the usage of Sweet SKO ( about 40 PPM Sulphur and 260 deg. C FBP) as interface plug for BS4 transportation in pipeline Among three Oil Marketing Companies (HPCL, BPCL, IOCL), HPCK conceived and developed at Vizag and replicated for other pipelines of HPCL. Explored alternatives for 200ppm sulphur and 225 deg. C FBP to serve as intermediate compatible product for superior MS and HSD(BS IV). HPCK- Costs 20% less than SSKO, better compatibility with MS due to low FBP.

13 INVOLVEMENT Joint meetings held during June 15-Dec 15 with Margin Mgmt group, Refinery Technical & operations & QC. Various Blend tests of HPCK with MS and HSD carried out Results confirmed interface handling capability of HPCK Trial runs made & actual results compared with lab blend tests All pipeline personnel have been trained for identification and segregation of Normal SKO and HPCK.

14 CHALLENGES FACED Capacity constraints of refinery in HPCK production Stringent batch planning- considering 50 MS/HSD batches with 550 KL HPCK required each time Separate tanks for storing HPCK SCADA updation for new interface analysis and proper segregation of products

15 REPLICATION AND BENCHMARKING Already being implemented at all HPCL pipelines Same can be implemented by OMCs pipelines as the product is cheaper than the standard SSKO and reliable. HPCL established a separate industrial benchmark for Kerosene parameters to handle BS4 grade product in multi product pipeline. Requirement of HPCK plug was optimised for handling interface with MS/HSD

16 ENVIRONMENTAL BENEFITS Reduction in Inventory cost(ms/hsd) : 10 Crores/Annum 150 KL reduction in down gradation(ms/hsd): Rs. 75 Lakhs/Annum Details of Material conservation Aspects (in KL) Origin al Reduc tion %age Reduction in Interface Quantity Reducing petroldiesel Downgradation Reduction in BS- IV batch (TKL)

17 BENEFITS Cost Economics Cost for HPCK: Cost of previous differentiator: 6.3 crores/batch 6.8 crores / batch Annual Savings: Product cost: Inventory Cost: 25.0 crores 10 crores

18 CASE 2: EX-VJA OPERATION and capacity utilization Multi-products : MS/HSD/SKO/ATF Multi-grades : BS III / BS IV W.e.f. 01/04/16, Separate Grades for A.P and Telangana During BS3 receipt in A.P, Telangana section is idle. Constraints of telescopic pipeline: (18 /16 /14 ) During BS4 pumping across VJA, overall flow rate reduces by 35% Leads to demand-supply imbalance and usage of more energy intensive/uneconomic pump combinations

19 EX-VIJAYAWADA OPERATION VDS RBS VBS SBS SRS EIII Shipment to Vijayawada VDS RBS VBS SBS SRS EIV Shipment to Secunderabad (Low Flow Rate of 450 Kl/Hr)

20 IMPROVING PIPELINE UTILIZATION Proposed to store E IV grades at Vijayawada in separate tanks. This E IV product is pumped to Secunderabad section during E III product intake in Vijayawada Improved pipeline utilization Ex - VBS SBS SRS VDS RBS VBS EIII HSD receipt at VBS EIV HSD pumping to SRS

21 PROJECT TRIGGER Separate fuel grades BS3- AP & BS4- Telangana state Telescopic structure Sub optimal operation of pipeline during BS4 supplies to Telangana

22 UNIQUENESS OF CONCEPT Simultaneous pumping BS3 to Vijayawada and BS4 to Secunderabad using existing pumps. Novel concept for overcoming externally imposed constraint. Pipeline capacity maintained by creating buffer stock for onward pumping Energy saving 1150 MWH/yr due to optimised pumping operation.

23 INVOLVEMENT Consultations held between Distribution, Pipeline group, Terminal and Quality Control. Road map drawn for Re-Configuration of tankages, piping, base booster pumps and Switch Gear Responsibilities allocated to each group by steering committee. Detailed engineering and procurement for station piping & equipment such as filters, flow meters density meters and other equipment

24 CHALLENGES FACED Short time line from Concept to implementation - 1 Year Extensive Hot work, Cold work and Electrical cabling in operating terminal Re-Engineering to match pump curves of base booster and mainline pump and to identify ideal operating range

25 REPLICATION Any process industry which faces imbalance between the units due to statutory/environmental or any other reasons, can adopt similar buffering and de-bottlenecking concepts to improve capacity. Important for situations, where no infrastructural expansion is possible due to space constraints. BENCHMARKS Specific Energy Consumption reduced down by 1.2 %

26 ENVIRONMENTAL BENEFITS 1. Energy savings: 1150 MW h/ annum 2. Cost savings: Rs Lakhs/ annum 3. GHG Reduction: 1120 tons of CO2 COST ECONOMICS Investment made Annual savings Payback : Rs. 2.5 Crores : Rs Lakhs (Only direct energy cost considered) : 3.5 Years

27 BENEFITS 1. Full capacity utilisation of pipeline during BS IV grade transportation to Telangana 2. Improved product delivery time to Secunderabad 3. Enhancement of pipeline utilisation by 18%

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29 Downgraded quantity from BS IV to BS III 300 KL Introduced special kerosene grade HPCK as batch differentiator between BS IV & BS III 20 KL Downgraded quantity reduced to 150 KL Product Savings : 43 %

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