UNDERGROUND CAVERN PROJECT

Compiled & Created ByManveer J Shetty-MBG-MarketingRavi-MBG-CSE

Vision & Mission of Project Underground

VISION"People will make wise, informed, choices as they manage cave, karst and groundwater resources to protect the underground ecosystems for the health of current and future generations".

MISSION"build the necessary awareness and responsible attitudes towards cave, karst and groundwater resources and their management needs among the general public through educational and interpretive programs."

SCOPE OF WORK

The project involves engineering, procurement, construction and commissioning of systems for crude oil 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 country's 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 CONSTRUCTIONSKEC&KCT JV MANGALORE 10.25MILLION BARREL 400 CRORE UNDER CONSTRUCTION

HCC LTD PADDUR 9.25MILLION BARREL 373 CRORE UNDER CONSTRUCTIONHCC 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.

A LIVE EXAMPLE

• SKE&C, a 60 Billion dollar Korean enterprise having a vast and rich experience in the construction of such caverns has tied up with the Indian allies M/s Karma Chand Taper (B) Ltd. for the execution of this project for a worth of INR 403 Crores.

• Engineers India Limited is appointed as the Project 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.

What does happen to crude oil?

• Located mostly in Coastal region • Crude Oil is transported from port to

the cavern through pipelines• Substations are set up in order to

pump in to caverns or back to refineries on demand

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 on demand•All the 4 Caverns are of similar dimensions with an approx. length of 2800m(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 CONSTRUCTIONEQUIPMENTS USED IN CAVERN CONSTRUCTION

Jumbo RigCharging CarShort Crete MachineHydraulic ExcavatorsDG SetsWheel LoadersDumpersTransit MixersCranesDozers

EQUIPMENTS USED IN CAVERN CONSTRUCTIONEQUIPMENTS 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 No's

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 No's

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 No's

Revenue generation

Parts revenue: Rs.50000/Dozer/year

Track Type Tractors

Usage: To doze the material Machine :Caterpillar Model: D6G No. of machines reqd: 1 Nos

Machineries utilized at the PADUR site

• Each such project requires machineries worth Rs.61.86 Cr approx.

• Mangalore received 3 UC projects necessitating 184 Cr worth machineries for the storage capacity of 28.75 Million Barrels (Total project cost for each project being 375 cr)

SL NO EQUIPMENT DETAIL MODEL CAPACITY TOTAL NO.S UNIT PRICE TOTAL PRICE1 DRILL JUMBO DT 820 2BOOM 3NOS 3.10 CRORE 9.30 Crores2 DRILL JUMBO DT 1130 3 BOOM 2NOS 5.21 CRORE 15.63 Crores3 CHARGING CAR 9905BT 500KG/BASKET 2NOS 2.0CRORE 4 Crores4 SHORT CRETE MACHINE 7110WPC 30M/H 2NOS 3.0CRORE 6 Crores5 KOAMATSU LOADER W470 3.5CUM 1NOS 1 CRORE 1.00 Crores6 CAT LOADER 980H 4.5CUM 3NOS 1.5CRORE 4.50 Crores7 CAT LOADER 988H 6.5CUM 1NOS 1CRORE 1.00 Crores8 EXCAVATORS S210 0.9CUM 1NOS 95LAKH 95 Lakhs9 EXCAVATORS CS340 1.5CUM 2NOS 78LAKH 1.56 Crores

10 VOLVO DUMPERS 400 31TON 16NOS 67 LAKH 10.72 Crores11 JCB BACKHOE LOADER 3DX 0.3CUM 1NO 19LAKH 19 Lakhs12 HYDRA CRANE HY12 12TON 1NO 10LAKH 10 Lakhs13 TRANS MIXER TM17 6CUM 3NOS 25LAKH 75Lakhs14 BATCHING PLANT SW 30CUM/HOUR 1NO 38LAKH 38 Lakhs15 COMPRESSOR 280 600CFM 1NO 9.8LAKH 9.8 Lakhs16 TATA TRUCK 1109 09TON 2NO 9LAKH 18 Lakhs17 GANTERY CRANE NA 15T0N 2N0 1.80 C 3.6 Crores18 DG SETS NA 500KV 8NOS 22LAKH 1.76 Crores19 DOZER D6G 17TON 1NO 65LAKH 65 Lakhs20 UNIROUT PUMP ATLAS 200L/M 2NO 30LAKH 60Lakhs

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

Opportunity Threats

Gmmco’s strength of catering vast product lines of caterpillar, supporting variety of application makes it a unique dealer.

RUN model which makes it a tailor made supplier.

Single last dealer makes it more credible

Excavators will be manufactured indigenously in the near future.

More Underground projects are in the pipeline.

Gmmco’s tie up with Mercedes Benz will be a major Boost in the On highway dumpers category

Competition is high Risk factor Demands to be matched with

continuous support on service and parts

Higher prices of machines due to imports leads to vulnerability.

Service support has to attain its Credibility

Quality of support has to match with the premium nature of the product.

Lead time needs to cope up with the competition-Product delivery, parts delivery and service support

SWOT Analysis for UCP

Strengths Weakness

Opportunity Threats

Development and utilization of underground space

Protection of ecological environment, resources utilization and sustainable development

Shortage of domestic energy resources

Crude oil supply instability Security issues

In the next 20 years,growth in demand for crude oil will be faster than domestic growth rate of crude oil.

Providing cost effective and practical engineering solutions

High capital costs Public access to this facility Product releases Fires or explosions Cavern subsidence or collapse Any other activity that endangers

public health, safety, or constitutes a threat to the environment

Snap shots

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

Conclusion

Underground cavern is the right solution – both technically feasible and commercially 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 of equipment, preparedness in case of eventualities, and great teamwork. Fixed establishment cost is high during the construction compared to variable cost. Any savings in time will more than compensate the additional cost involved for such crashing. Many construction projects of this kind provide opportunities for the construction contractors and also for the engineers. The safe and mass storage system is possible in an underground which offers strategy storage for the country demand and the supply to demand can be managed during war, etc.

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