UNDERGROUND CAVERN PROJECT Compiled & Created By Manveer J Shetty-MBG-Marketing Ravi-MBG-CSE
Vision & Mission of Project UndergroundVISION"People will make wise, informed, choices as they manage cave, karstand groundwater resources to protect the underground ecosystems forthe health of current and future generations".MISSION"build the necessary awareness and responsible attitudes towardscave, karst and groundwater resources and their management needsamong the general public through educational and interpretiveprograms."
SCOPE OF WORKThe project involves engineering, procurement,construction and commissioning of systems for crudeoil receipt, pumping out, metering, recirculation,heating, waste water treatment, utilities production,flaring and operation buildings.
INTRODUCTION• cavern - a large cave or a large chamber in a cave• a geological formation consisting of an underground enclosure with access from the surface of the ground or from the sea.• Underground cavern project is for strategic storage of crude oil, required to provide supplies during emergencies/disruption of supplies .• Underground rock caverns are considered the safest means of storing hydrocarbons• It could store crude oil to meet the countrys demand for 15 days in case of an emergency. It assumed significance because India would depend on oil imports for 92 per cent of its crude oil needs by 2020, and because of the volatility in West Asia
Facts and Figures• Total number of underground cavern projects in india are 4.• GOI has decided to set up 5 MMT Strategic crude oil storages at Mangalore, Vishakapattanam and Padur.• located to coasts so that they are readily accessible to the refining sector through marine distribution• GOI has set up special purpose vehicle-INDIAN STRATEGIC PETROLEUM RESERVES LTD under OIDB to implement, maintain and operate strategic storage.• India plans to store 136 Million Barrels till 2020. COMPANY LOCATION PROJECT CAPACITY ESTIMATE STATUS SKEC&KCT JV PADDUR 9.25MILLION BARREL 375 CRORE UNDER CONSTRUCTION SKEC&KCT JV MANGALORE 10.25MILLION BARREL 400 CRORE UNDER CONSTRUCTION HCC LTD PADDUR 9.25MILLION BARREL 373 CRORE UNDER CONSTRUCTION HCC LTD VIZAG 7.30MILLION BARREL 380 CRORE COMPLETED
What are the necessities to undertake these projects• GOI proposes to construct underground rock cavern storage of imported crude oil on detailed feasibility report prepared by Engineers India Ltd in alliance with geostock Engineers• GOI has set up special purpose vehicle-INDIAN STRATEGIC PETROLEUM RESERVES LTD under OIDB to implement, maintain and operate strategic storage.• A company is appointed as the Project Management Consultants for the project.• Subcontracting enterprise executes the project by providing all back up support in liasoning with local govt. bodies and for implementing preliminary setup of site and main cavern works.
What does happen to crude oil? A LIVE EXAMPLE• Locatedamostly in Coastal region• SKE&C, 60 Billion dollar Korean enterprise having a• Crude Oil is transported fromconstruction cavern vast and rich experience in the port to the of such caverns has tied up with the Indian allies M/s Karma through pipelines for the execution of this project for Chand Taper (B) Ltd.• Substations are set up in order to pump in to a worth of INR 403 Crores.• caverns or back to refineries on demandProject Engineers India Limited is appointed as the Management Consultants for the project.• Nag & Rich Infract are the subcontractors to the JV for the execution of this prestigious project of strategic importance to the country.
Features of Caverns•Located mostly in Coastal region.•Crude Oil is transported from port to the cavern through pipelines•Substations are set up inorder to pump in to caverns or back to refineries ondemand•All the 4 Caverns are of similar dimensions with an approx. length of2800m(30m height and 20 m wide)•Oval in shape.•Capacity of oil storage cavern-2.3MMT•Total cavern length-4(700)m equals to a TOTAL -2800M•Cavern height-30m and width-20m•Total length of access tunnel – 1400m(12&8M WIDTH)•Total water curtain length-6.5m high and width-1140m
EQUIPMENTS USED IN CAVERN CONSTRUCTIONJumbo RigCharging CarShort Crete MachineHydraulic ExcavatorsDG SetsWheel LoadersDumpersTransit MixersCranesDozers
EQUIPMENTS USED IN CAVERN CONSTRUCTION Jumbo Rig Usage: To drill hole inside the tunnel Machine :Sandvick Mining ltd Model: DT820 No. of machines reqd: 3 -4Nos
Charging Car Usage: To Charge the explosive inside the tunnel Machine :Normat International Ltd Model: HIMEC No. of machines reqd: 3 Nos
Short Crete Machine Usage: To Concrete side walls Machine :Normat International Ltd Model: HIMEC No. of machines reqd: 3 Nos
Hydraulic Excavators Usage: To Excavate the stone after blasting and scaling is done Machine :Doosan Make Model: S-340,S-210Capacity: 35 Ton and 20 Ton No. of machines reqd: 3 Nos Gmmco’s opportunity Promote CAT Hydraulic excavators mapped to the tonnage requirement for the applicationMachines Applicable:320D,329D,336 Revenue generation Parts revenue: Rs.75000/excavator/month approx.
DG Sets Usage: To supply power to the plant Machine :Greaves Capacity: 400KVA No. of machines reqd: 8 Nos Gmmco’s opportunity Promote CAT DG sets mapped to the Power rating requirement for the application Engines Applicable:320KVA/365KVA/500KVA Revenue generation Parts revenue: Rs.2,43,500/engine/year approx Service revenue: Rs.14000/engine/year approx
Wheel Loaders Usage: To remove the material outside Machine :Caterpillar Model: 980H & 988F ,WA470(Komatsu) Capacity: 6.5Cu.m,4.5Cu.m,3.5Cu.m No. of machines : 5 Loaders Revenue generation Parts revenue: Rs.22,00,000/Loader/year
Dumpers Usage: To remove the material outside Machine :Volvo Model: 400 Capacity: 31 Ton No. of machines reqd: 18 Nos
Transit Mixers Usage: To remove the material outside Machine :Volvo Model: 400 Capacity: 31 Ton No. of machines reqd: 18 Nos
Hydra Cranes Usage: Material Handling application Machine :Hydra Crane Model: HY12 Capacity: 12 Ton No. of machines reqd: 1 Nos
Track Type Tractors Usage: To doze the material Machine :Caterpillar Model: D6G No. of machines reqd: 1 NosRevenue generation Parts revenue: Rs.50000/Dozer/year
Future Scenario of Underground cavern projects?• India plans to store 136 Million Barrels of Crude oil Storage.• This storage will be used as strategic reserves for the country during emergencies/disruption of supplies• India would depend on oil imports for 92 per cent of its crude oil needs by 2020, and because of the volatility in West Asia
SWOT Analysis For GMMCO Strengths Weakness Gmmco’s strength of catering vast Service support has to attain its product lines of caterpillar, supporting Credibility variety of application makes it a unique Quality of support has to match with dealer. the premium nature of the product. RUN model which makes it a tailor made Lead time needs to cope up with the supplier. competition-Product delivery, parts Single last dealer makes it more credible delivery and service support Opportunity Threats Excavators will be manufactured Competition is high indigenously in the near future. Risk factor More Underground projects are in the Demands to be matched with pipeline. continuous support on service and Gmmco’s tie up with Mercedes Benz will parts be a major Boost in the On highway Higher prices of machines due to dumpers category imports leads to vulnerability.
SWOT Analysis for UCP Strengths Weakness Development and utilization of Shortage of domestic energy underground space resources Protection of ecological environment, Crude oil supply instability resources utilization and sustainable Security issues development Opportunity Threats In the next 20 years,growth in demand High capital costs for crude oil will be faster than domestic Public access to this facility growth rate of crude oil. Product releases Providing cost effective and practical Fires or explosions engineering solutions Cavern subsidence or collapse Any other activity that endangers public health, safety, or constitutes a threat to the environment
Advantages• To ensure energy security in response to external supply disruptions• Safest means of storing hydrocarbons• Balance supply and demand• control oil and gas prices fluctuations• Withstand the emergency and safeguard the economic safety• Highly strategic and safe storage• Large storage capacity• Strong security• Less pollution• Small footprint• Short construction period• Low investment
ConclusionUnderground cavern is the right solution – both technically feasible andcommercially viable – for LPG, crude oil storages.The construction of underground facility is a technically challenging job;successful completion of such projects depends on the right kind ofequipment, preparedness in case of eventualities, and great teamwork.Fixed establishment cost is high during the construction compared tovariable cost. Any savings in time will more than compensate the additionalcost involved for such crashing.Many construction projects of this kind provide opportunities for theconstruction contractors and also for the engineers.The safe and mass storage system is possible in an underground whichoffers strategy storage for the country demand and the supply to demandcan be managed during war, etc.