Reliance Industries pushes for access to PSU oil firms' ATF pipelines, storages

Reliance Industries Ltd is advocating for access to pipelines and storages constructed by public sector oil companies over the years for the distribution of jet fuel (ATF) to airports, aiming for a larger share of fuel trade at some of Asia's busiest aviation hubs.

Reliance, a major contributor to the country’s aviation turbine fuel (ATF) production, desires access to storage depots outside major airports like Delhi, Mumbai, Bengaluru, and Hyderabad. Currently, its ATF supplies are comparatively modest in comparison to those made by state-owned firms.

The proposal was submitted by Reliance in response to the oil regulator PNGRB's draft regulation, which calls for the supply of ATF to all existing and future airports through accessible pipelines, fostering competition and reducing fuel costs.

While the fuel market is open, the infrastructure at the country's busiest airports, built by state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), predominantly serves airlines through pipelines.

Reliance has persistently sought access to these pipelines, stressing that access should include associated storage facilities and pumping stations at off-site oil terminal facilities, crucial components of the ATF supply chain.

The demand for ATF in India is witnessing significant growth, driven by increasing air travel. At airports like Delhi and Mumbai, where IOC and BPCL dominate fuel supplies, third-party access to pipelines is limited due to the absence of storage facilities.

Reliance proposes that off-site ATF storage facilities, such as those at Bijwasan outside the Delhi airport, be designated as common user facilities to facilitate access for other suppliers and airlines.

For Mumbai, Reliance advocates for the operation of ATF pipelines by HPCL and BPCL on a common carrier basis, enabling other companies to utilize them.

Similar suggestions were made for airports in Hyderabad, Kochi, and Lucknow, emphasizing the efficiency and cost-effectiveness of pipelines for bulk transportation of fuel.

Reliance asserts that promoting competition through pipeline access will benefit airlines, which spend a significant portion of their costs on fuel.

The Petroleum and Natural Gas Regulatory Board (PNGRB) had sought comments from stakeholders on the development of ATF pipelines connecting various airports in India, recognizing pipelines as the most economical mode of liquid fuel transport.

(With PTI inputs)