Challenges and Opportunities

Transcription

1 LPG Logistics and Infrastructure In India Challenges and Opportunities Pradip Kumar Jha Chief General Manager (LPG-Operations) Indian Oil Corporation Limited, India The International LP Gas Seminar 2018 Tokyo, March 6 th and 7 th, 2018

2 Introduction AGENDA LPG Demand & Supply Outlook LPG Logistics & Infrastructure Opportunities for the World

3 IndianOil Company Profile o An integrated Energy major, ranked 168 th amongst the top World s Largest Corporates (1 st in India). Revenue USD 65.4 Billion & Profits USD 2.8 Billion in ACTION PLAN o Owns 11 out of 23 Indian Refineries (Approx. TGET 35% of total refining capacity of India) Refining capacity in MMTPA IOC BPC HPC Others Total o Handling appx. 71% Pipeline throughput in downstream sector IOC BPC HPC Total kms 93.7 MMTPA 2229 kms MMTPA 2514 kms MMTPA kms MMTPA

4 IndianOil Company Profile ACTION PLAN o 91 LPG Bottling Plants supplying 2.4 million LPG Cylinders everyday IOC BPC HPC Total TGET No. of Plants Bottling Capacity (TMTPA) % capacities o Nationwide network of 9961 LPG distributors delivering LPG Cylinders at the doorsteps of 125 million customers IOC BPC HPC Total No. of Distributors No. of Customers (Million)

5 Marketing Setup of Indian LPG Industry Domestic Non-Domestic Industrial Bulk Transport (Auto LPG) Subsidised Non Subsidised 19 kg 47.5 kg 425 kg 5 kg 5 kg

6 Segments of Indian LPG Industry Non- Domestic, 6.5% Industry Bulk, 2.4% Transport, (Auto LPG) 0.9% Non- Domestic, 5.5% Industry Bulk, 2.6% Transport (Auto LPG), 0.7% Domestic, 90% Domestic, 91.2% Segment-wise Constant Growth

7 Introduction AGENDA LPG Demand & Supply Outlook LPG Logistics & Infrastructure Opportunities for the World

8 LPG Consumption, Production & Import Historical Base Year Nos. in MMT Consumption Indg. Availability Import CAGR 8.52% CAGR 3.0% CAGR 17.0% Demand 50% Increase Production 15.6% Increase Import 121% Increase Large Dependence on Imports

9 LPG Consumption, Production & Import Projections Demand (Nos. in MMT) Import Production Demand 54% Increase Production 56% Increase Import 57% Increase CAGR 3.65% CAGR 3.2% CAGR 3.3% Demand 56% Increase Production 57% Increase Import 66% Increase

10 Introduction AGENDA LPG Demand & Supply Outlook LPG Logistics & Infrastructure Opportunities for the World

11 LPG Supply Chain India IMPORT TERMINAL Bulk Movement REFINERY /FRACTIONATOR Packed Cylinder Movement 11

12 LPG Supply Chain Reach Out to the End User As on LPG Supply Sources - Middle East - Others Sources-47 Refineries 22 Fractionators 9 Import terminals 16 Plants 189 IOC 91 BPC 51 HPC - 47 Dist IOC 9961 BPC 4899 HPC A Movement of LPG ex Supply source thru LPG Vessels B Bulk movement thru Pipelines, Rail & Road C Packed movement thru Cylinder Trucks

13 Distance of 1st Indian Port from Major Suppliers MINA AL AHMADI RAS TANURA IRAN RAS LAFFAN RUWAIS SOHAR KANDLA COUNTRY (Supplier) PORT NAUTICAL MILES DISTANCE (IN DAYS) KUWAIT (KPC) MINA A AHMDI QATAR (Qatar Petroleum) RAS LAFFAN SAUDI ARAB (Aramco) RAS TANURA UAE (ADNOC) RUWAIS IRAN ASSALUAH

14 Country-wise LPG Import Malaysia, 2 Russia, 5 UAE, 13 Azerbaijan, 3 Oman, 3 Saudi Arabia, 28 % Import Year QTY TMT FOB CFR Total (Proj) FOB : Freight on Board CFR : Cost & Freight Kuwait, 10 Qatar, 36 Major imports 87% from Arabian Gulf

15 (1) Sikka (RIL) 0.6/0.15 (2) Kandla (IOC) 0.60 /1.06 LPG Import Terminals Name Plate / Achieved Capacity in MMTPA (1) Mundra (Adani ) 1.50 (10) Haldia (IPPL) 0.60 /2.1 (3) Haldia (BPCL ) 1.00 MMTPA (3) Porbandar (SHV) 0.12/0.11 (4) Pipavav (Aegis) 0.20 / 0.50 Existing Cap : 6.74 Ach. Cap : 10.4 Proposed Addition : 5.10 (11) Haldia (Aegis ) 1.00 / 0 (5) Dahej (GCPTCL) 0.40 / 0.44 (6) Mumbai (Aegis) 0.4/0.49 (7) JNPT (BPCL) 0.60 / 0.68 (13 & 14) Vizag (SALPG/EIPL) 0.6 / 1.65 (4) Paradip (IOC ) 2.00 MMTPA (8) Mangalore (TOTAL) 0.30 / 0.45 (2) Cochin (IOC ) 0.60 MMTPA (9) Mangalore (HPCL) 0.6 / 1.42 (16) Tuticorin (SHV) 0.12 / 0.13 (15) Ennore (IPPL) 0.6 / 1.4 (12) Port Blair ( ) Existing 16 Nos. Proposed 4 Nos.

16 Butane - Propane Ratio 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% $29 -$21 -$27 -$47 -$ PROPANE BUTANE Propane ~ Butane Differential

17 VLGC MGC Ratio 7.0 Figs. In MMT VLGC MGC VLGC/MGC Ratio VLGC : Very Large Gas Carrier MGC : Medium Gas Carrier 0.0 Increasing Trend in Utilization of MGCs due to port constraints Higher ocean freight (about USD 8 per MT)

18 Mode of Transportation of Bulk LPG % as of Pipeline, 32% Average freight : a) Road - Rs.2.8/MT/km b) Rail - Rs.2.02/MT/km c) Pipeline Rail tariff (VSPL/JLPL), other pipeline as per IRR working (~ 60% to 80% of road tariff) Rail, 5% Road, 63% Road Rail Pipeline Efforts to Improve Pipeline Share to 55 %

19 Jalandhar Proposed LPG Pipeline Network Existing Panipat Loni Rewari Mathura Gorakhpur Jaipur Muzaffarpur Lucknow Ajmer Gwalior Kanpur Barauni Sanand Ujjain Allahabad Patna Bhagalpur Mundra Varanasi Koyali Kandla Durgapur Bhopal Jamnagar Hazira Haldia Mumbai Balasore Paradip Secunderabad Vizag Chakan Vijayawada Hassan Ennore Mangalore Bangalore Mysore Coimbatore Trichy Salem Madurai Kochi Under Implementation Proposed Digboi Guwahati N.Guwahati SN Pipelines Company Length (KMs) Rated Capacity (MMTPA) Existing Pipelines : Jamnagar - Loni GAIL Visakapatnam - GAIL 623 Secunderabad Panipat - Jallundhar IOC Mangalore Mysore HPC Yediyur Under Implementation Pipelines : Paradip Haldia Durgapur 1 Barauni Muzaffarpur IOC 1278 Patna 2 2 Ennore Trichy Madurai IOC Kochi Coimbatore Erode IOC & Salem BPC JV Uran Chakan HPC Proposed Pipelines : Kandla - Mundra- Dahej - Bhopal - Jhansi Lucknow Gorakhpur Mangalore Hassan Cherlapally Industry JV HPC

20 Rail Movement Liberalised Wagon Investment Scheme (LWIS) - Procurement of own rakes to be operated in pre-defined circuits Movement of product: - Movement of bulk LPG takes place in rakes - 1 Rake : 32 wagons Capacity of each wagon : 37.6 MT - Presently 32 rakes are in operation Augmentation Plans: - Target To make it double by Railway siding with Hub and Spoke model being explored

21 Truck Capacity Details Particulars 306 & lower capacity 450 and above capacity Industry (32%) Rate advantage Rs /Cyl/Km. Rs /Cyl/Km. (15-20% Saving) Constraints in use of higher capacity trucks RGGLV Distributors (30%) Low capital Needs load in smaller package Less space for manuverability in approach to godown Hilly Region Bigger capacity truck not feasible

22 LPG Bottling Infrastructure HPC 3882 As on Bottling Capacity in TMTPA HPC 5247 As on Bottling Capacity in TMTPA TGET IOC 9085 IOC BPC 3747 BPC % Bottling Capacity Addition

23 LPG Storage Infrastructure LPG Tankage as on LPG Tankage as on Plants Sources Plants 363 TMT 247 TMT Sources 404 TMT 250 TMT TGET Import Terminals 271 TMT Import Terminals 334 TMT Average 7 days cover at Bottling Plants & Import terminals Plan under consideration to improve storage upto 10 days cover

24 Introduction AGENDA LPG Demand & Supply Outlook LPG Logistics & Infrastructure Opportunities for the World

25 Opportunities for the World Export of Butane, Propane and LPG-Mix to India Construction of Import Terminal LPG Terminalling and Storage Collaboration with OMCs / Port Authorities for Development of LPG Jetty Development of LPG Pipelines and other transport networks

26 Thank you