Good Morning Ladies and Gentlemen,
Greeting from IndianOil to all of you,
It’s my privilege to be here today, before the esteemed Chennai based Media Representatives and get to know all of you. So far as the Oil Industry is concerned we are passing through some exciting times triggered by a phase of technological transformation.
There are apprehensions today that the liquid Fuels like Petrol & Diesel that all of us are so used to all our lives may not be there always, not because we would run out of them, but because many alternate energy options are emerging fast.
While the indicators do not substantiate it, IndianOil has always been ready for managing change. Aside from growing our regular fuel network and sprucing them up with the touch of state-of-art technologies like full automation and making them environment friendly through solarisation etc., we are also heavily investing into the future.
You all know that a few months ago, Hon’ble Prime Minsiter launched the IndianOil’s Ennore LNG Terminal, which would be the forerunner, ushering in the Gas based energy phase into Tamil Nadu. This Terminal with its linkages through Pipelines and spur lines to Tuticorin and Bengaluru would bring in the cheaper and cleaner Natural gas to the industries, auto fuel stations and Households.
When this grid gets connected to CGD operators across the state, Tamil Nadu would have a whole network of LNG, CNG & PNG to replace the conventional fuels that we are using today.
The proposed LPG Pipelines which would run across the state would sharply reduce our dependence on the road transportation of Bulk LPG to the bottling plants, which is the norm currently not only in Tamil Nadu but across Southern Region.
In LPG IndianOi’s Indane has a market Share of 58.1 with the sales of over 1250 TMTs of product during the last fiscal and in the current year we expect to sell 1316 TMTs.
Out of the total number of LPG distributors of 1598 on industry basis, IndianOil has 851 distributors. Out of the total number of 238 lakhs LPG customers of in Tamil Nadu, IndianOil has 136 lakhs.
Looking into the LPG Projects, Salem Bottling Plant has been commissioned at a total cost of about Rs.90 Crore – this is India’s first LPG bottling plant to be built on Raze and Rebuild basis, where the old plant was completely knocked down and the new one built from ground-up. Commercial production started with effect from May, 2019.
IndinaOil is also set to augmentation of the storage capacity of its bottling plants across the state to gear up for the enhanced demand for the product in the current year. Around 6000 MTs of storage is being added across Ennore, Puducherry, Trichy, Madurai and Erode bottling plants.
In sync with the augmentation of the storage capacity , we are also expanding the bottling capacity in the plants by adding carousel machines as in Coimbatore, Erode and Trichy bottling plants and by installing larger carousels with more number of filling points as in Chengalpet, Puducherry and Madurai plants.
Adding all this, total value of all the ongoing and proposed projects in Tamil Nadu bottling plants is around Rs.260Crore.
Current LPG storage capacity of LPG across the battling plants in Tamil Nadu is about 14,000 MTs which includes 1800 MTs of Tirunelveli bottling plant which is yet to be commissioned. With this capacity IndianOil is capable of rolling out about 265,000 cylinders per day adding up to an annual bottling capacity of 940 thousand MTs per year.
IndianOil has launched and is sustaining a host of customer centric initiatives including multiple options for digital payments, A short no 1906 for 24 hrs Emergency leakage call service, Preferred Time Delivery Scheme, SAHAJ (e-SV) – to enable prospective customers to register and make payment online for availing LPG connections at the doorsteps, New Customer website – cx.indianoil.in and IndianOilOne app , Introduction of 5 kg FTL LPG cylinders for use in LPG iron boxes for iron and laundry segment workers & Jumbo 425 kg cylinder
For the benefit of PMUY customers, IndianOil is promoting 5 kg domestic cylinders. Existing PMUY customers having 14.2 kg cylinders can exchange their 14.2 cylinders with 5 kg domestic cylinder, enabling the customer to obtain the refill with less of financial burden.
Presently southern markets of Tamil Nadu are being fed from Terminals at Sankari, Trichy, Madurai and Coimbatore. While Coimbatore is connected with the BPC owned Cochin-Coimbatore-Karur Pipeline, other 3 terminals are fed by IndianOil’s Chennai-Trichy-Madurai Pipeline (CTMPL), which has a booster station at Asanur with a line branching off to Sankari Terminal.
Due to growing demand for Petrol / Diesel in Tamil Nadu, it is proposed to convert the above Booster Station on CTMPL at Asanur into a full-fledged terminal that would be supplying fuels to the surrounding districts of Villupuram, Cuddalore, Perambular and Puducherry. This New Terminal at Asanur is being set up at a project cost of around Rs.470 Crore. 75 acres of land required for the project has been taken over from SIDCO and EC has been obtained for the project. The terminal is likely to be commissioned by June 2021.
We are setting up a new grass root terminal at Vallur near Ennore Port at an estimated project cost of Rs.700 Crore.
This terminal would receive product from CPCL Refinery and Ennore Port and supply to Chennai and nearby markets by road and also through CTMPL & Chennai-Bengaluru Pipeline for upcountry locations. We plan to shift all our market supplies from Korukkupet and Tondiarpet terminals to this new terminal.
In addition to these grass roots terminals, additional Tankage at Madurai, Sankari, Trichy and Coimbatore Terminals to the tune of 52,000 KL of diesel and 12,000 KL of Petrol storage is being created.
Further, in line with Government’s thrust on blending of Bio fuels, i.e. Ethanol & Bio-diesel, we are putting up additional tankage at all our locations.
LPG demand is being currently met by IndianOil from Bottling Plants at IndianOil Petronas Pvt.Ltd. and CPCL Manali. Bulk LPG is being positioned from CPCL Refinery and through imports at Kamarajar Port. Presently there is a single jetty at Kamarajar Port for LPG, Petroleum Products and other chemicals. Due to growing demand, this is causing heavy congestion and longer detention of tanker vessels. Hence there is a strong need to have our own jetty at Kamarajar Port. The proposed captive jetty would handle about 3 MMTPA product (Petroleum Fuels – 2 MMT, LPG – 1 MMT).
The preliminary work for the above POL Jetty at Kamarajar Port Limited (KPL) is in progress and is slated to be completed in three to five years’ time.
IndianOil has planned to set up 2615 new retail outlets for which applications were called during last year and received response for 2277 locations. However, the new dealer selection process is kept in abeyance due to court stay, the selection process has been kept in abeyance w.e.f. 20.2.19 at industry level in TN & Puducherry.
Focusing on social rehabilitation of prisoners, IOC has signed MoU with department of Prisons and correctional services, Tamil Nadu. Total 11 state-of-the-art “Freedom filling station” are planned. 5 are already in operation with deployment of over 150 inmates. Besides Social rehabilitation of prison inmates, the outlet provides avenue for skill development/employment on release and Marketing of prison produce in “Freedom Bazaar”
BS VI HSD has also been made available at one RO in Mettupalyam, Ooty for field trials of vehicles by Mahindra. Product is also available for public interested in use of BS VI HSD.
IOC is the leading supplier of HSD to Tamilnadu State Transport Undertakings (STUs), supplying to all their 266 depots. As a key step for equipping the TN State Transport Corp. with better fuel monitoring and management systems to track consumption and to use the data to develop an inventory management system, IOC has developed Automation of facilities at the Consumer Pumps (CPs)of the STCs. This is being carried out in a phased manner at the STC depots.
Similarly 85% of fuel requirement of Railways in Tamilnadu is being catered to by IOC through 11 Railway consumer Depots of Southern Railways.
We have automated 2251 Retail outlets which will record all transaction done at the ROs. The retail automation will ensure 100 % quality and quantity delivered to customers. Real time data transfer from the retail outlet to IOC will ensure close monitoring of all transaction at the ROs.
IOC has implemented solarization of 876 Retail outlet as on June19 out of which 221 are rural retail outlet. This will ensure uninterrupted customer service even during power failure. IOC is committed to renewable energy solution to protect the environment and further targets to solarize 450 outlets more in 2019-20.
Requirement of natural gas continues to grow by about 8% per annum and it is being imported in the liquid form from 2003 onwards. Imported liquefied natural gas (LNG) now constitutes over 50% of India’s annual natural gas consumption.
To meet the growing demand for liquefied natural gas, Indian Oil Corporation through its Joint Venture Company, IndianOil LNG Private Limited has built a LNG import terminal of 5 MMTPA capacity (equivalent to around 18 Million Standard Cubic Meters per day) at Kamarajar Port at a total cost of Rs.5150 Crore.
Ennore LNG Terminal is the first LNG terminal on the eastern coast of India. The terminal is expected to spur industrial growth in the Tamil Nadu. The LNG Terminal was inaugurated by Hon’ble Prime Minister of India in March 2019.
IndianOil has also bagged the project from PNGRB to construct 1250 KM of pipeline from Ennore to Tuticorin with two major spur lines to Bangalore (297 KMs). The 22.3 KM pipeline stretch from Ennore to Manali has already been constructed and commissioned. The total planned route is to be constructed at an estimated cost on Rs 6000 Crore.
Pipeline will cater to all major industrial clusters in Tamil Nadu & Puducherry viz, Manali, Sriperumbudur, Puducherry, Cuddalore, Nagapattinam and Tuticorin. The LNG Pipeline will also touch major cities viz. Chennai, Tiruchirappalli and Madurai. Pipeline laying activities have commenced for the entire pipeline and are at various stages of progress.
Currently LNG supplies are being made to Chennai Petroleum Corporation Limited (CPCL), Madras Fertilizers Limited (MFL) and Tamil Nadu Petrochemicals Limited (TPL). The gas will also be made available for City Gas Distribution (CGD) including transport sector, commercial sector and for cooking in houses (PNG – Piped Natural Gas) and for Vehicles (as CNG – Compressed Natural Gas) as and when the CGD network is ready.
IndianOil is also supplying LNG through cryogenic Road Tankers to consumers like Saint Gobain, who are yet to be connected by Gas Pipeline and is in talks with many other customers for supply.
CGD is the last component of the Natural Gas Value Chain, delivering Natural Gas to small users like Homes, Commercial buildings, Vehicles etc. to meet the demand for a more efficient, economical and environment-friendly energy source. CGD Network comprises high pressure (7-49 bar) Steel and medium & low pressure (7 bar-110 mbar) MDPE network for maintaining different levels of gas pressure to meet requirements of various segment of gas users. PNGRB during 9th Round of bidding awarded the Salem and Coimbatore geographical areas to IndianOil to develop CGD based on competitive bidding.
IndianOil is targeting to lay 3900 inch KMs of pipeline, provide 12.5 lakh PNG Connections and set up 430 CNG stations in 8 years in Coimbatore and Salem Districts at a total cost of Rs.4200 Crore.
As a major step towards further cleaning up the environment, IOC is the first and only supplier of BS VI grade HSD to the auto majors with supplies from Mathura Refinery to facilitate R&D activity on engine developments conforming to BSVI standards. IOC is also supplying BS VI MS to several auto OEMs in TN Including, Ashok Leyland Ltd, Daimler India, BMW India, Hyundai etc…
As per IMO 2020 (MARPOL guidelines), all the marine tanker vessels are required to switch over to Marine fuel oils with sulphur content of 0.5% against the current limit of 3.5%. IOC is completely geared up to make available this MARPOL 2020 compliant fuel oils at all the ports of Tamilnadu by Oct’2019, ahead of the deadline of 01.01.2020. IOC is supplying high quality VG 40 grade (Viscosity grade) bitumen to all NH road projects under its popular “Durapave” brand name.
IOC has tied up for marketing of Compressed Bio gas (CBG) being produced by IOT Bio gas at Namakkal under SATAT. This is the first of its kind venture for providing alternate fuel to industries and Automobiles mandated by Govt. of India. Marketing is slated to start by Oct’19.
Some of the unique CSR projects undertaken by IOC in Tamil Nadu in the recent times are:
HU Methane Gas Plant for Community Kitchen at Tirunelveli which converts human excreta from the community toilets of a nomadic tribe to methane which is supplied for cooking. This project meets the United Nations Sustainable Development goals and has helped in the transforming the colony as ODF (Open Defecation Free) Colony, thus fostering Health and Hygiene.
Bandicoot, a Robotic solution for eradication of manual scavenging in Kumbakonam helps save many precious lives and improves the overall efficiency of cleaning of drainage Manholes and Sewers. Bandicoot helps to reduce manual intervention in cleaning of city drains to large extent, thereby freeing the Municipality workers from the drudgery of going underground to clean the drains.
IndianOil has provided an incubation Centre to Vellore Co-operative sugar Mills which includes training hall with touch screen, Rain Water Harvesting Pit, drip system for wide row plantation and farm equipment. Many farmers have benefitted through learning of modern techniques in this facility.
The micro compost project has helped Thiruvallur Municipality in doing away with the dump yard at Ekkadu road. Wet waste collected by the sanitary workers will get converted into manure which will be distributed to the small and marginal farmers.
The Micro forest which has nearly 3000 Native trees to provide a congenial atmosphere for the TB patients of the Govt. Hospital at Perundurai Medical College has been provided by IndianOil, in addition to essential medical equipment.