Pipeline Agreements of IOCL: A Comprehensive Overview
Indian Oil Corporation Limited (IOCL) has established itself as one of the leading oil companies in India, with a vast network of pipelines for the transportation of various petroleum products. IOCL holds pipeline agreements with various entities to ensure smooth and uninterrupted flow of products across the country. In this article, we will take a closer look at pipeline agreements of IOCL and their significance.
What are Pipeline Agreements?
A pipeline agreement is a legal contract between two or more parties for the transportation of goods or products through a pipeline system. Pipeline agreements define the terms and conditions of transportation, including the quantity, quality, pricing, and liability for any damages or losses during transportation.
Pipeline Agreements of IOCL
IOCL has an extensive network of pipelines across India, covering more than 14,000 km and transporting various petroleum products, including crude oil, LPG, gasoline, diesel, aviation turbine fuel (ATF), and kerosene. IOCL has pipeline agreements with various entities, including other oil companies, refineries, and marketing companies, to ensure the smooth transportation of these products.
Let`s take a look at some of the significant pipeline agreements of IOCL:
1. Paradip-Hyderabad Pipeline: IOCL has a 1,212 km long pipeline from Paradip to Hyderabad, transporting crude oil. IOCL has a pipeline agreement with Hindustan Petroleum Corporation Limited (HPCL) to transport crude oil from Paradip to Visakhapatnam, where HPCL has a refinery.
2. Kandla-Gorakhpur LPG Pipeline: IOCL has a 2,757 km long pipeline from Kandla to Gorakhpur, transporting LPG. IOCL has a pipeline agreement with Bharat Petroleum Corporation Limited (BPCL) to transport LPG from Kandla to BPCL`s Kanpur LPG plant.
3. Mathura-Jalandhar Pipeline: IOCL has a 1,015 km long pipeline from Mathura to Jalandhar, transporting petrol and diesel. IOCL has a pipeline agreement with HPCL to transport petrol and diesel from Mathura to HPCL`s Bathinda refinery.
Significance of Pipeline Agreements
Pipeline agreements are essential for the smooth transportation of products across the country. These agreements ensure uninterrupted supply of products, which is crucial for the functioning of various industries, such as transportation, aviation, and manufacturing. Moreover, pipeline agreements also help in reducing transportation costs and minimizing the risk of accidents and spillages during transportation.
Conclusion
Pipeline agreements are an essential part of IOCL`s operations, ensuring the smooth transportation of various petroleum products. IOCL has pipeline agreements with various entities, including other oil companies, refineries, and marketing companies, to ensure uninterrupted supply of products. These agreements help in reducing transportation costs and ensuring the safety of products during transportation.