Transportation &

Distribution of
Petroleum and
Petroleum Products
By S. Medhi
Assistant Professor
Dept. of Petroleum Engineering

Production Sequence
NATURAL FLOW
ARTIFICIAL LIFT

WATER
DRIVE

DEPLETION
DRIVE

GRAVITY
DRIVE

GAS CAP
DRIVE

COMBINATION
DRIVE

SECONDARY
RECOVERY

WATER
FLOODING

PRESSURE
MAINTENANCE

IMMISCIBLE
GAS FLOOD

FLOODING

GAS LIFT

PUMP

TERTIARY
RECOVERY

MISCIBLE
GAS FLOOD
- CO2 FLOOD
- N2 FLOOD
- INERT GAS
- RICH GAS

CHEMICAL
FLOODING

ALKALINE
SURFACTANT
POLYMER
- MICELLAR POLYMER
ASP
-

THERMAL
INJECTION

MICROBIAL
EOR

HOT WATER
STEAM FLOOD
- INSITU COMBUSTION
-

Oil Field
Processing

Introduction
The main objective of Surface Petroleum

Operations, SPO, is the processing of

reservoir fluids-exit the well-head- in order to
produce marketable products; namely crude
oil and natural gas.
Oil-gas mixture moves from the well-head

until the crude oil is separated, treated, and

finally stored.
The first step in crude oil processing takes

place in the gas-oil separation plant (GOSP),

where gases are separated from oil.
4

Process

Storage Tanks

WHAT IS A STORAGE
TANK?
A storage tank is a container, usually for
holding
liquids,
sometimes
for
compressed gases (gas tank).
Storage tanks operate under no (or very

little) pressure, distinguishing them from

pressure vessels.
Aboveground storage tanks (AST) differ

from underground (UST) storage tanks in

the kinds of regulations that are applied
7

Types of
storage tanks

Open Top Tank

(Atmospheric)

Fixed Roof
Tank
(Atmospheric ,
Low
Pressure /High
Pressure))
Cone Roof
Tank(Supported
) self supported

Floating
Roof Tank

External
floating Roof

Dome Roof
Tank(Supported)
self supported

Other Types

Bullet Tank

Bolted Tank
Internal
floating Roof
Sphere Tank

5/15/16

Petroleum Sector & Refining

Scenario

WORLD ENERGY
SCENERIO

10

Key Energy Sources

Petroleum
Natural Gas
Coal
Nuclear Energy

Primary Energy

Hydro
Others
Solar
Wind
Fuel Cell
Bio-mass
Waste recycling, etc
11

Top Primary Energy Consuming

Countries
2500

2337

Total World Energy Consumption: 10537 mtoe

2000

1554

1500
1000

mtoe

680

500
0

Figs in

USA

525

China Russian Fed Japan

387

India

324

318

Germany Canada

India: per capita energy consumption 351 kgoe against 1627 kgoe
world average
12
India consumes 3.7% of world energy & ranks fifth

Domestic Energy
Consumption
India ranks 5th in the world in terms of

Energy consumption
India currently accounts for about 3.7% of

worlds commercial energy consumption

Low per capita Energy consumption is at 351

kgoe against 1627 kgoe for world average

Large rural population, predominantly using

biomass
Oil

continues to remain major source of

Energy

Source: BP Stats 2006

13

Primary Commercial Energy Mix

World
2003

10517
mtoe

World

Nucl; 6%

Oil; 39%

Coal; 24%

Nucl; 5% Oil; 33%

Coal; 27%

2030
18040 mtoe
CAGR: 2%
Oil

Gas; 26%

Gas; 24%

India

& Gas continue

to play major role

India

2003-04

Oil; 29%

Oil; 36%

327
mtoe

1651 mtoe
CAGR: 6.2%
Coal; 51%

Gas; 9%

Source World: EIA-2010

2031-32

Gas; 12%

Coal & Oil continue to

play major role; Gas is
emerging
14

GLOBAL SCENERIO

15

Benchmarking CRUDE OIL

Also known as oil markers ,first introduced in mid
of 1980s.
Benchmarks are used because there are many
different varieties and grades of crude oil.
Using benchmarks makes referencing types of oil
easier for seller and buyers.

16

Benchmarking CRUDE OIL

Three Primary Benchmarks

WTI

BRENT

DUBAI

Other well known Blents includes

1.
2.
3.
4.

OPEC basket used by OPEC

TAPIS crude traded in Singapore.
Bonny light used in Nigeria.
Mexicos

(Energy Intelligence group publication identifies 161 different blends)

17

Benchmarking CRUDE OIL

Brent Blend comprises 15 oils from fields in Brent

and Ninian region in East Shetland Basin of the
North Sea. Bench-marking crude in western
circuit. Used all over the world in Europe and OPEC
basket market. Not light or as sweet as WTI. Still a
high grade crude oil.

WTI (West Texas Intermediate) for North American

Oil (Light & Sweet).Typically traded at a dollar or two
premium to brent. And another dollar or two premium to
OPEC basket.

Dubai is used as a benchmark of the Asia-Pacific

region for Middle East Oil.

Tapis (from Malaysia) is used as a reference for

light Far East oil.
18

Global Refinery
Scenario

19

INDIAN SCENARIO

20

India - Oil & Gas

Resources
Crude Oil
Reserves: 786 mtoe/5.9 bln bbl
Production: 36.2 MMTPA/816 tbpd

Natural Gas
Reserves: 1101 bcm
Production: 30.4 bcm

Source: BP Stats 2006

21

Crude Oil Sources for Indian Refineries

Domestic sources :
Mumbai High (Light, Sweet) Offshore
Gujarat (Med, Heavy, Sweet ) Onshore
Assam (Medium, Sweet) Onshore

Availability limited to around 23% of

current demand
Overseas sources :

Many sources, but major being Middle East

and most of these crudes are medium and
sour
22

Indian Oil & Gas Sector

Overview (Contd.)
The Indian Petroleum Sector
Oil & Gas
Exploration/Prod.
Pure
Refiners
CPCL,
BRPL, NRL,
MRPL, RIL,
HMEL
ONGC, OIL

Refining and
Marketing
Pure
Marketing
IBP

Natural Gas
Distribution
Refining +
Marketing
IOC, HPCL,
BPCL, ESSAR
GAIL, Gujarat
Gas, GSPL
23

Indian Oil & Gas Sector

Overview( Contd.)
Indian Refining Sector Has 11 Companies:

ESSAR; 6%
ONGC; 0%

IOC; 26%
BRPL; 1%

RIL; 34%

CPCL; 5%
BPCL(M); 7%
BPCL(KR); 4%
HPCL; 9% NRL; 1%

MRPL; 7%

24

Indian Oil & Gas Sector Overview( Contd.)

Petroleum Refining

In all

22 Refineries: 17 public sector,3 pvt. Sector,2 Joint

ventures.

1.
2.
3.
4.
5.
6.
7.

IOC
IOC
IOC
IOC
IOC
IOC
IOC

Digboi
Barauni
Guwahati
Koyali
Haldia
Mathura
Panipat

8. BRPL, Bongaigaon
9. CPCL, Chennai
10. CPCL, Narimanam
11. BPCL, Mumbai
12. BPCL(KR), Kochi
13. NRL, Numaligarh
14. Nagarjuna Oil

corporation,
Cuddalore Refinery

15. HPCL, Vizag

16. MRPL, Mangalore
17. ONGC Tatipaka
18. RIL Jamnagar ,Pvt.
19. RIL (SEZ) Jamnagar
Pvt.
20. Essar Jamnagar Pvt.
21. BPCL-Oman Oil
Company,Joint
Venture,Bina.
22. HPCL Mittal Energy
ltd. Bhatinda. JV

25

New Refineries

26

27

Capacity Utilization

91

28

Product demand Vs
Refining Capacity

29

30

REFINERY PRODUCTS
FUEL PRODUCTS
=14
1. PROPANE
2. LPG (2 GRADES)
3. GASOLINE (NORMAL)
4. GASOLINE(PREMIUM)
5. LOW AROMATIC
NAPHTHA
6. HIGH AROMATIC
NAPHTHA
7. AVIATION TURBO
FUEL

8. HIGH SPEED
DIESEL
9. LIGHT DIESEL
OIL
10. KEROSENE
11. FUEL OIL
(NORMAL)
12. FUEL OIL
(DEFENCE)
13. Low Sulphur
Heavy Stock
(LSHS)
14. BITUMEN
31

CONTD..

REFINERY PRODUCTS
LUBE PRODUCTS
1. NEUTRAL OILS = 3
2. TURBINE OILS = 2
3. INDUSTRIAL OILS
=2
4. AXLE OILS = 2

SPECIALITIES
1.

HEXANE

2.
3.
4.
5.

SOLVENT = 3
CBFS/RPO = 3
ASPHALT = 3
SULPHUR

5. TRANSFORMER OIL
BASE STOCK (E)
6.

BRIGHT STOCK
32

Yields are crude dependent

Lt Distillate

100%
80%

Middle
Distillate

60%
40%

Heavy ends

20%
0%

Bombay High
API
40
% Sulfur
0.17
O

Bonny Light
33.6
0.18

Arab Light
Kuwait
34.2
31.0
1.9

2.7
33

Transportation of Oil &

Gas

34

Transport of Oil & Gas

Oil and gas are vital source of energy , essential

for domestic, industry, agriculture and transport

sectors.
Transporting these components at the desired

location with minimum expenditure and with

minimum hazard is the foremost requirement.
The four major transportation modes are :

35

36

Typical Mode wise

Transportation

37

INDIA : REFINERY / PIPELINE NETWORK

JALANDHAR
AMBALA

BHATINDA

PANIPAT
DELHI

JAIPUR

MATHURA

KANDLA
KOTA
MUNDRA
GULF OF KUTCH
VADINAR

SABARMATI

RELIANCE

KOYALI

HAZIRA

ESSAR

MUMBAI

NRL

GUWAHATI

BARAUNI

CALCUTTA

SOROS

ITARSI
NAGPUR
CUTTACK

INDORE
MANMAD

DIGBOI

ALLAHABAD

BORL,Bina

RATLAM

Silugiri

UP REF

JHANSI

BRPL

KANPUR

PUNE
HYDERABAD
VIJAYWADA

VIZAG

HALDIA

PARADEEP

Existing Refinery
Proposed Refinery
Existing Product Pipeline
Existing Crude Pipeline

MRPL

MANGALORE

COIMBATORE
KARUR

COCHIN

Proposed Crude Pipeline

BANGALORE

CHENNAI

Proposed Product Pipeline

NARIMANAM
TRICHI
MADURAI

38

Petroleum Pipeline
System
There are essentially three major
types of pipelines:
Gathering pipeline system.
Crude oil transmission pipeline

system.
Refined products pipeline system.

39

40

Size, Cost , and Life of

Pipeline
SIZE :
Size ranges from 2 inches to 48 inches in

diameter.
Pipelines are buried at a depth of 3 to 6 feet.

COST :
Rule of thumb: investment of one crore is

required for one km. of 12 14 inch dia. pipeline

along with its related station facilities.
The payback normally ranges over 5 years.
41

Design Life
Pipelines

are usually designed

continuous operation of 35 years .

for

But if they are adequately protected

against internal / external corrosion

,they can be run even for more years.
Guwahati-Siliguri

(1962),
Haldia
Barauni (1967), pipeline have been
working beyond such periods.
42

Petrol
eum
Engin
eering
IT
Engin
eering
Midstre
am and
Downst
ream
Electrica
l/Electro
nics
Enginee
ring

Chem
ical
Engin
eering

Mech
anical
Engin
eering

Civil
Engin
eering

43

Summary
Extraction of Surface
crude oil
Production
from
Facility
reservoir
OCS
Offshore
Onshore

GCS

Refinery
Petroleum
Products
Petrochemical
Products

44

Thank You

45