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
Introduction AGENDA LPG Demand & Supply Outlook LPG Logistics & Infrastructure Opportunities for the World
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 2016-17 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 80.7 36.5 33.6 95.07 245.87 o Handling appx. 71% Pipeline throughput in downstream sector IOC BPC HPC Total 13300 kms 93.7 MMTPA 2229 kms 16.54 MMTPA 2514 kms 23.57 MMTPA 18043 kms 133.81 MMTPA
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 91 51 47 189 Bottling Capacity (TMTPA) 9085 3747 3882 16714 % capacities 54 23 23 100 o Nationwide network of 9961 LPG distributors delivering LPG Cylinders at the doorsteps of 125 million customers IOC BPC HPC Total No. of Distributors 9961 4899 4733 19593 No. of Customers (Million) 125 66 68 259
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
Segments of Indian LPG Industry 2017-18 2031-32 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
Introduction AGENDA LPG Demand & Supply Outlook LPG Logistics & Infrastructure Opportunities for the World
LPG Consumption, Production & Import Historical 25 20 15 Base Year 2010-11 14.3 15.3 15.6 16.3 18.0 19.6 21.5 Nos. in MMT Consumption 10 5 9.6 9.5 9.8 9.8 8.2 5.8 5.8 6.3 4.7 10.6 11.1 9 10.4 Indg. Availability Import 0 10-11 11-12 12-13 13-14 14-15 15-16 16-17 CAGR 8.52% CAGR 3.0% CAGR 17.0% Demand 50% Increase Production 15.6% Increase Import 121% Increase Large Dependence on Imports
LPG Consumption, Production & Import Projections 40.0 35.0 30.0 29.2 Demand 32.8 35.5 39.8 (Nos. in MMT) 25.0 20.0 15.0 10.0 11.9 24.0 12.1 13.8 16.8 Import Production 18.5 18.6 18.6 19.0 16.1 14.3 Demand 54% Increase Production 56% Increase Import 57% Increase 5.0 0.0 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 CAGR 3.65% CAGR 3.2% CAGR 3.3% Demand 56% Increase Production 57% Increase Import 66% Increase
Introduction AGENDA LPG Demand & Supply Outlook LPG Logistics & Infrastructure Opportunities for the World
LPG Supply Chain India IMPORT TERMINAL Bulk Movement REFINERY /FRACTIONATOR Packed Cylinder Movement 11
LPG Supply Chain Reach Out to the End User As on 01.02.2018 LPG Supply Sources - Middle East - Others Sources-47 Refineries 22 Fractionators 9 Import terminals 16 Plants 189 IOC 91 BPC 51 HPC - 47 Dist.- 19593 IOC 9961 BPC 4899 HPC - 4733 A Movement of LPG ex Supply source thru LPG Vessels B Bulk movement thru Pipelines, Rail & Road C Packed movement thru Cylinder Trucks
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 1301 3.9 QATAR (Qatar Petroleum) RAS LAFFAN 1106 3.2 SAUDI ARAB (Aramco) RAS TANURA 1177 3.5 UAE (ADNOC) RUWAIS 1072 3.2 IRAN ASSALUAH 1100 3.2 13
Country-wise LPG Import Malaysia, 2 Russia, 5 UAE, 13 Azerbaijan, 3 Oman, 3 Saudi Arabia, 28 % Import Year QTY TMT FOB CFR Total 2015-16 8122 599 8721 2016-17 8781 1619 10400 2017-18 (Proj) 9909 1391 11300 FOB : Freight on Board CFR : Cost & Freight Kuwait, 10 Qatar, 36 Major imports 87% from Arabian Gulf
(1) Sikka (RIL) 0.6/0.15 (2) Kandla (IOC) 0.60 /1.06 LPG Import Terminals Name Plate / Achieved Capacity in MMTPA - 2016-17 (1) Mundra (Adani 2019-20) 1.50 (10) Haldia (IPPL) 0.60 /2.1 (3) Haldia (BPCL -2018-19) 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 -2017-18) 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- 2019-20) 2.00 MMTPA (8) Mangalore (TOTAL) 0.30 / 0.45 (2) Cochin (IOC- 2019-20) 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 (2017-18) Existing 16 Nos. Proposed 4 Nos.
Butane - Propane Ratio 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 39.2 38 38.3 40.9 42 -$29 -$21 -$27 -$47 -$8 60.8 62 61.7 59.1 58 2013-14 2014-15 2015-16 2016-17 2017-18 PROPANE BUTANE Propane ~ Butane Differential
VLGC MGC Ratio 7.0 Figs. In MMT 6.2 6.0 5.4 5.3 5.3 VLGC 5.0 4.0 3.0 2.0 1.0 3.7 3.2 2.6 2.1 1.8 1.3 2.4 2.2 2.9 1.8 3.8 1.4 5.1 1.2 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)
Mode of Transportation of Bulk LPG % as of 2016-17 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 %
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 : 2394 6.27 1 Jamnagar - Loni GAIL 1415 2.5 2 Visakapatnam - GAIL 623 Secunderabad 1.13 3 Panipat - Jallundhar IOC 273 0.7 4 Mangalore Mysore HPC Yediyur 356 1.94 Under Implementation Pipelines : 2519 5.43 Paradip Haldia Durgapur 1 Barauni Muzaffarpur IOC 1278 Patna 2 2 Ennore Trichy Madurai IOC 615 0.9 Kochi Coimbatore Erode IOC & 3 458 Salem BPC JV 1.53 4 Uran Chakan HPC 168 1 2 Proposed Pipelines : 3320 7.5 Kandla - Mundra- Dahej - Bhopal - Jhansi Lucknow Gorakhpur Mangalore Hassan Cherlapally Industry JV HPC 1 2700 6 620 1.5
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 2023-24 - Railway siding with Hub and Spoke model being explored
Truck Capacity Details Particulars 306 & lower capacity 450 and above capacity Industry 18613 6001 (32%) Rate advantage Rs. 0.10 /Cyl/Km. Rs. 0.08 /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
LPG Bottling Infrastructure HPC 3882 As on 01.01.2018 Bottling Capacity in TMTPA HPC 5247 As on 01.04.2021 Bottling Capacity in TMTPA TGET IOC 9085 IOC 14020 BPC 3747 BPC 6514 54% Bottling Capacity Addition
LPG Storage Infrastructure LPG Tankage as on 01.01.2018 LPG Tankage as on 01.04.2021 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
Introduction AGENDA LPG Demand & Supply Outlook LPG Logistics & Infrastructure Opportunities for the World
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
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