Assignment-1

Roll no: 17BPE025

Faculty mentor: Achinta bera

Due date:2/2/2020

1) Discuss the history of pipelines in terms of development in different countries.

History of pipelines in U.S.:

Early 19th century:

 This includes Edwin drake drilling the first commercial well in Titusville,
pennsylvania in 1859.
 This was a turning point in oil industry, where people began to realize about the
potential produced by the crude oil resources in 1880s.
 These fields were able to fulfill about 80% of world’s oil consumption.

Transportation issue

 Crude oil transportation was a major concern in early 1860s.

 It was transported with the help of teamsters at that time using whiskey barrels
and horses
 They used to transport it to 5 miles by horses and then through railway from
Pennsylvania to new York.

Establishment of first pipeline

 The first wooden pipeline was built in 1862 of 9 miles length in order to rule out
teamsters out of competition.
 Independent oilmen was the first to discover a crude oil trunk line called tide water
in 1879 but soon the half of it was owned by Rockefeller
 Rockefeller started laying pipelines in buffalp,Cleveland, philadephia and new York.

 In 1913 U.S came into decision of imposing a pipeline ratemaking act which was
named as valuation act.
 Large land based diameter pipelines came into picture in WWI and WWII.
 During 1950s-1960s major oil production across the world was contributed by U.S
and Canada, hence exporting crude oil through pipelines in various countries was
taken into account by the U.S.
  Trans-alaskan pipeline was build in 1977 and it carried over 2million barrels of oil
per day in 1988.
 Modern pipelines were developed which were able to handle severe conditions.

Workers busy laying first oil pipeline in U.S

History of pipelines in China:

 China used to transmit natural gas through a pipeline made of hollow bamboo in
400BCE.
 This natural gas was transmitted to its capital at that time i.e. peking
 Ancient Chinese made use of pipe systems and channels for public works.
 The key pipeline connecting China is Central Asia-China gas pipeline.
 This pipeline transports natural gas from Turkmenistan to shanghai,a city in china.
 This included three lines and began operating in 2014 carrying around 25 billion cubic
metres per annum in 2015.
 The agreement of laying this pipeline was signed with china national petroleum
corporation.
 Map view of central-Asia-China gas pipeline

History of pipelines in india:

 Naharkatia-Nunmati-Barauni pipeline was the first crude oil pipeline constructed in

India to bring crude oil from Naharkatia oilfield to Nunmati.
 It is 1167 km long
 Naharkatia and Nunmati started operating in 1962 whereas Nunmati and Barauni
pipeline started operating in 1964.
 Map view of major pipelines in india

History of pipelines in Canada :

 The first transmission pipeline was built in 1853.it was longest pipeline at that time of
around 25km length carrying natural gas to trolls reviers,OC.
 In 1862 canada built world’s first crude oil pipeline
 The expansion of Canadian pipeline transport began in 1950s for oil and gas industry.
 In 1912 canada western natural gas build a natural gas pipeline of 275km in length.
 In 1993 canada energy pipeline association was formed.
Natural gas pipeline built by Canadian western natural gas in 1912
2) Discuss the statistics of pipelines in US and Indian oil and gas industries.
India’s statistics
US’ statistics
 3) Briefly discuss the existing pipelines in India for crude transportation, natural gas and
petroleum product transportation.

Naharkatia-Nunmati-Barauni Pipeline:
 This was the first pipeline constructed in india of 1167km long.
 It extends to Kanpur in uttar Pradesh.
 Nunmati-silguri pipline transports crude oil from guwahati to silguri in west Bengal.
 It has many pumping stations and supplementary pipelines.
 Other sections transport different material from one region to the other.
Mumbai High-Mumbai-Ankleshwar-Kayoli Pipeline:

 This pipeline of 210 km long connects Mumbai to the refinery at koyali in Gujarat.
 This pipeline was completed in 1965.
 It transports crude oil.
Hajira-Bijapur-Jagdishpur (HBJ) Gas Pipeline:
 This is the world’s largest underground pipeline.
 it is 1750km long and transports gas from hazira in state of Maharashtra and bijapur in
Madhya Pradesh.
 It is connected to three power houses and six fertilizer plants.
 It is owned by GAIL (gas authority of india ltd,)
Sayala-koyali-mathura pipeline:
 It extends from salaya in Gujarat to Mathura in uttar Pradesh.
 It is 1256km long pipeline which transports crude oil to refineries.
 It has an offshore terminal for imported crude oil.
Kandla-bhatinda pipeline:
 It is 1331 km long pipeline.
 It transports crude oil to the refinery at bhatinda.
 It is constructed by IOCL for approximately 690 crores.

4) Discuss the cost of pipeline transportation for crude oil, petroleum product, and natural
gas.

 Before designing a pipeline, a detailed magnitude cost analysis is done to decide

whether the project is feasible enough to give reasonable economic returns on the
investment.
 A cross country pipeline involves around 80% of capital investment considering
construction and installation costs.
 Direct costs of piping: this involves purchase and installation cost of pipeline and
including the labour and raw materials cost.
 Indirect cost of piping: this includes cost associated with designing and engineering of
pipelines
 Fees associated with the contractor
 Extra cost involved in the design error or labour disputes.
 Material cost estimation:
  There are many other costs involved such as fabrication cost and erection cost which are
considered for detailed analysis.
 Schematic of typical calculation of piping cost:

References:

1. https://www.aboutpipelines.com/en/pipeline-101/pipeline-history/
2. https://pipeline101.org/The-History-of-Pipelines/1800
3. http://www.pipingguide.net/2009/04/costing-of-pipelines-1.html
4. http://www.yourarticlelibrary.com/india-2/pipeline-6-major-pipelines-of-india/19721
5. https://en.wikipedia.org/wiki/Pipeline_transport
6. http://petroleum.nic.in/sites/default/files/pngstat1516.pdf
7. https://www.bts.gov/content/us-oil-and-gas-pipeline-mileage

------------------------------------------------------------------------------------------------------------------------------