India’s Petroleum Products and their Supply Chain Network

Submitted by

Kiriti Acharya (1226114115)

Karan Pratap (1226114116)

Mohammed Naseer Khan (1226114117)

Lalith Akhil Pillal (1226114119)

M.Sai Surya Raghava (1226114120)

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INDEX

Sr. No. CONTENTS PAGE No.

1 INTRODUCTION 1

2 PRODUCT CATEGORY 1-9

3 INTERNATIONAL TRADE PETROLEUM 9-11

4 PIPELINES OPERATIONS AND OBJECTIVES IN INDIA 11

5SUPPLY CHAIN AND DISTRIBUTION NETWORK 12-15

6PETROLEUM PRODUCTS

15-16

7HANDLING PROCESURES 17

8 PETROLEUM INVENTORY MODEL 18

9 SUGGESTION 19

10. BIBLOGRAPHY 20

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Introduction:-

The petroleum industry plays an important role in the economic development of the country

• Performance of its supply chain has become very important

• The petroleum industry traditionally had prices decided by the Government of India.

• Effective from August 1, 2004, the Government put in a revised methodology allowing oil companies to revise the prices of motor spirit and High Speed Diesel (HSD).

• The total investment estimated in the petroleum sector from 1995 till 2010, is expected to be Rs. 4,32,000 crore (US$120 bn), out of which Rs. 2,58,000 crore (US$80 bn), are for the upstream sector alone

• Petrochemical industry in India employs around 40,000 people directly and around 4 lakhs indirectly

Product category:

1. Base Oils:-

In Base Oils Products Section, buyers can find several products such as Wholesale Synthetic Oil, Spray Oil, and Synthetic Base Oils along with detailed information about wholesalers, manufacturers, suppliers and exporters.

Tulsi oil Sassafras oil Sage oil Rosewood oil Rosehip oil Recycled base oil Patchouli oil Parsley oil Oregano oil Orange oil Lemon oil Hazelnut oil Grapefruit oil Fenugreek oil Cumin seed oil Cumin oil Clove leaf oil

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Cinnamon oil Chamomile oil Carrot seed oil

2. Bitumen:-

Buyers can find several types of Bitumen such as Oxidized Bitumen, Bitumen Paint and Wholesale Liquid Bitumen with detailed information about Acid wholesalers, suppliers and exporters.

Crumb rubber modified bitumen

Road bitumen

Polymer modified bitumen

Natural bitumen

Bitumen mastic

Bitumen emulsion

Bitumen additives

Adhesive bitumen

3. Crude Oil:-

In this section, you can find wholesale Crude Oil, Crude Sunflower Oil, Crude Palm Oil and Crude Jatropha Oil. 

Bonny light crude oil

4. Fuel Oil:-

This category offers detailed information and specifications about an exclusive range of Wholesale Fuel Oil, Bio Fuels, Generator Fuel Oil and Furnace Fuel Oil. 

Biofuel

Motor fuel

Fuel oil testing kits

Fuel oil heaters

Buffet fuel

Heavy fuel oil

5. Graphite:

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Here you will find Graphite, Graphite Powder, Graphite Electrode and Wholesale Graphite Block along with information about reliable wholesalers, wholesale suppliers and exporters

Crystalline graphite

Carbon graphite

Mineral graphite

6. Kerosene Oil:-

This category offers high performing kerosene oil, kerosene fuel, kerosene coal oil and kerosene fuel oil that are offered by dependable wholesalers, exporters, manufacturers and wholesale suppliers. 

Refined kerosene’s

Deodorized kerosene

7. Lubricating Equipment & Devices:-

In Lubricating Equipment Section, buyers can find several products such as wholesale lubricating system, automatic lubrication system, oil lubrication system along with detailed information about wholesaler

Single point lubricator

Lubricant tube

Air lubricator

Oil mist lubricator

Lever grease gun

Oil guns

Grease machine

Oil lubricator

Grease bucket

Machine tool lubricants

Radial lubricator

Progressive lubrication system

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Pneumatic grease gun

Oil filter equipment

Metering cartridge

Lubrication tools

Lubrication system

Lubrication pump

Lubricating system

Grease lubrication system

s, manufacturers, suppliers and exporters.

8.Oil & Gas Field Equipment :-

Oil Field Equipment directory offers detailed information about thousands of products such as Gas Field Equipment, Wholesale Electrode Holder, Gas Booster and more.

Cng cascade

• Cng reducer

• Gas mixer

• Marine fuel

• Marine oil cooler

• Natural gas engine

• Air pressure regulator

• Regulators nozzles

• Portable gas analyzer

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• Refrigeration oil separator

• Pump oiler

• Propane vaporizer

• Propane regulator

• Propane gas regulator

• Portable gas detection devices

• Plastic oil can

• Oil spray gun

• Oil refinery equipment

• Oil mist collector

• Oil cup

9.Oil & Lubricants:-

Lubricant section offers complete information about Wholesale Oil Lubricant, Silicon Sealants and Lithium Grease. 

• Cutting fluid

• Wire drawing compound

• Coning oil

• Valve lubricants

• Used lubricating oil

• Gear oil additives

• Low temperature grease

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• Gear grease

• Marine lubricants

• Yellow grease

• Chain grease

• Lubricating greases

• Sludge oil

• Broaching oil

• Waste oils

• Viscosity improver

• Friction reducer

• Spinning oil

• Gear lube

• Lubricant additives

10.Paraffin :-

Here you can find Wholesale Paraffin, Paraffin Wax, Liquid Paraffin and Chlorinated Paraffin. 

• White soft paraffin

• Paraffin wax equipment

• Paraffin wax emulsion

• Paraffin gauze dressing

• Paraffin candle wax

• Liquid paraffin

• Light liquid paraffin

• Chlorinated paraffin oil

• Light liquid paraffin oil

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• Paraffin oil

• Paraffin candle

• Paraffin wax

11.Petrochemical Products :-

This Petrochemical Products offers Wholesale Sodium Petroleum Sulphonate, Furnace Oil and Magnesium Petroleum Sulfonate.

• Molecular sieves

• Carbon molecular sieve

• Oil spill dispersant

• White mineral oil

• Oleo chemicals

• Petrochemical plants

• Petrochemicals solvents•

12.Vaseline:-

In this section, we offer information about Vaseline wholesale suppliers, wholesalers, exporters and manufacturers. Buyers can click on any product such as Petroleum Jelly, Vaseline Lotion, White Petroleum Jelly etc. to view product details, specifications.

13.Others :-

Here you will find information about wholesalers, wholesale suppliers, manufacturers and exporters of Petrol Additives, Envirotabs, Gasoline Octane Booster and Wholesale Hydraulic Oil.

International Trade of petroleum:- This section showcases about our International Marketing, Crude Supplies and our offerings. The activities of International Trade & Shipping (IT&S) relate to:

Crude oil imports

Petroleum Product Imports / Exports

Shipping

Production planning for Refineries

Supplies for domestic markets

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Product exchange with other Indian Oil marketing companies and Oil price risk management

Petroleum Product Imports:-HPCL imports products for meeting domestic market requirement.The products being imported by HPCL are: LPG Kerosene Gas Oil Gasoline Low Sulphur Fuel oil

Petroleum Product Exports:-HPCL exports products and intermediate streams from its refineries.The products being exported by HPCL are: Fuel Oil High Sulphur Gas oil Naphtha Packed Bitumen Food grade Hexane Lube oil base stock

Shipping:-

Shipping Wing under International Trade & Supplies Department looks after the entire sea transportation arrangements for Crude, LPG, Lubes and other Petroleum Products from various Indian and international ports.Ministry of Petroleum & Natural Gas has allowed HPCL to directly charter ocean tankers for meeting its transportation requirements of Crude, LPG, Lubes and other Petroleum Products. Accordingly, HPCL has started its chartering activities for hiring crude and petroleum products vessels directly effective June 2008. In addition, Shipping Wing along with other Oil PSUs, time charters thru limited tenders, ocean tankers for movements of Petroleum Products all along the Indian coast.Shipping Wing of HPCL also handles following activities:

Appointment of Surveyors at Mumbai & Vizag & various foreign ports to attend crude oil loadings/discharge operations

Appointment of Agents to attend our chartered vessels at various ports

Empanelment of ship brokers to meet our ship chartering requirements

Objectives of pipelines :-

To promote the importance of maintaining and improving the standards

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of pipeline engineering for all types of pipeline for transportation of

hydrocarbons and associated materials, both on- and offshore, and to

acknowledge and promote the status of those involved with their design,

construction, operation, and maintenance.

To promote the importance of operating these pipelines with the highest

possible standards of integrity and safety.

To be proactive in the promotion and establishment of best practicein the

minimization of environmental impact from pipelines of all types.

To provide an opportunity for identifying research opportunities in this

field, and eventually to be a source of funding for collaborative R&D

projects.

To provide a forum for discussion of all the issues concerned with

pipeline engineering and integrity.

To provide a network so that those involved in maintaining pipeline

integrity and safety are able to exchange ideas and experiences among

their peer group.

To create, and maintain the standard of, a professional qualification for

those involved in this industry which reflects their personal experience

and status.

Pipelines in Operation of India:

Name of Pipeline Length in KMs Capacity in MMTPA

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1. Mumbai Pune Solapur Pipeline (MPSPL) 508 4.30

2. Visakh Vijayawada Secunderabad Pipeline (VVSPL) 572 5.38

3. Mundra Delhi Pipeline (MDPL) 1054 5.00

4. Ramanmandi Bahadurgarh Pipeline (RBPL) 243 4.71

5. Ramanmandi- Bathinda Pipeline (RBhPL) 30 1.13

6. Awa Salawas Pipeline (ASPL) 93 2.30

7. Bahadurgarh Tikrikalan Pipeline (BTPL) 14 0.75

Total 2514 23.57

Supply chain and distribution network of petroleum in India:-

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Exploration → Production → Refining → Marketing → Consumer

• Exploration: Seismic, geophysical and geological operations

• Production: Drilling, reservoir, production and facilities engineering.

• Refining: complex operation and its output is the input to marketing.

• Marketing: The retail sale of gasoline, engine oil and other refined products.

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Crude Purchase

Retailing / Consumer

(Demand Centre)

Crude Storage

Product Transptn/Distribution(Tanker/PL/Rail/Road)

Mktg Product Storage

(Terminal/ Depot/ Port)

Refining

Supply Planning

Distribution Planning

Crude Transptn.

(Tanker/PL)

Importance of supply chain in petroleum industry:-

• Petroleum industry is highly asset intensive

• Like other chemical companies supply chain can account for up to 70% of overall cost.

• Highly specialized business processes encourage fragmentation.

• Chemical supply chains are typically non-linear in nature

• Supply chain optimization at a strategic and operational level is a value creating opportunity for chemical companies and a potential source of competitive advantage

Upstream:-

• Acquisition of crude oil.

• Operations – Exploration, Forecasting, Production.

• Logistics management - Delivering crude oil from remotely located oil wells to refineries

Downstream:-

• Refinery- The crude oil is manufactured into the consumable products that are the specialty of refineries and petrochemical companies.

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• Processes - forecasting, production, and the logistics management of delivering the crude oil derivatives to customers around the globe.

Petroleum products in India:-

Objectives of successful supply chain:-

• Minimization of material procurement

• Maximization of manufacturing capacity and sales

• Meet demand numbers

• Respond quickly to market opportunity by purchasing the production shortfall from other players

• Objective of each production unit would be to maximize the throughput and its margin

• Procurement would purchase the feedstock with not the best yields at lowest cost

Supply chain strategies:-

• Planning

– Which feed stock to buy

– Where to process

– How much to buy readymade and how much to make

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– What to make and where

– How to transport

• Scheduling

– When and in what order feedstock should arrive at manufacturing facility

– When and in what sequence or modes to run the equipments

– Which orders to meet and what dates to promise

• Demand planning: For demand forecasting and aggregation of the final demand numbers based on requirements of supply chain

• Integrated Planning: Planning for the complete supply chain of the customer based on demand numbers

• Distribution Planning: Generating operational plans for distribution

• Production Planning: Generating operational plans for production.

These modules are supported by various enablers that facilitate planning activity that include:

• (1) Supply Chain Database (SCD)

• (2) Geographical Information System (GIS)

• (3)Data Interfaces

Supply chain planning:-

• The demand numbers are fed to an integrated planning module that contains representation of supply, production and distribution facilities

• The production and the Supply and Distribution (S&D) structure forms the basis on which the optimised plan for the entire organisation is generated

• This corporate plan is communicated to distribution modules and the production planning modules to generate operational plans

• The optimised plan for the entire corporation is also used as a basis for feedstock selection runs.

• GIS can be used to obtain the distances between locations, which are used as a basis for freight calculation.

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Handling procedures of petroleum:-

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Petroleum Inventory model:-

Global oil trade network:-

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Suggestions:-

• Raw Material Supplies:

Formulating a long term agreement with some of the oil producing nations and in order to take care of price fluctuations

Government should allow the petroleum companies to use hedging for finalizing deals involving purchase of crude oil.

• Transportation Costs:

Use of Pipeline transportation

• Length of Supply Chain:

Facilities at the ports should be improved and their capacity to be increased so that more tankers could berth at the harbour

• Inventory Carrying Costs:

Use of a reliable transportation system and quick information exchange can reduce carrying costs

Government should aim at reducing the minimum safety stock, which oil companies are supposed to keep

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• Integration of Supply Chain Partners:

Oil companies should aggressively use information technology to integrate suppliers and customers.

Effective use of ERP can help in this regard.

Bibliography:-

1. http://www.ibef.org/industry/oil-gas-india.aspx

2. http://www.ranken-energy.com/Products%20from%20Petroleum.htm

3. https://www.questia.com/library/journal/1P3-1337289121/supply-chain- characteristics-of-the-petroleum-industry

4. http://www.yourarticlelibrary.com/india-2/pipeline-6-major-pipelines-of- india/19721/

5. http://www.hindustanpetroleum.com/internationaltradehome

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