Reliance seeks access to ATF pipelines, storages of PSU oil firms

ATF demand in India is growing in double digits as more people fly. It rose by 11.8 per cent in the fiscal year ended March 31, 2024.

Reliance Industries Ltd has sought access to pipelines and storages that public sector oil companies have built over the years for supplying jet fuel (ATF) from depots and oil refineries to airports, as it looks for a larger pie of fuel trade at some of Asia’s busiest airports.

The firm made the suggestion in its comments to oil regulator PNGRB’s draft regulation calling for supply of ATF in all existing and future airports through pipelines that can be accessed by any supplier so as to bring in competition and cut fuel cost.

While the fuel market is open, airplanes at the country’s busiest airports are fed by pipelines that were built by state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) over decades.

Reliance, which has been for more than a decade now seeking access to pipelines that supply ATF to airports especially at Mumbai, stated that ”the common carrier pipeline scope (which gives third parties access to pipelines built by PSUs) should encompass the associated storage facilities and pumping stations at the ’off-site’ oil terminal facilities as they form an integral part of the ATF supply chain.”

Out of the 17.12 million tonnes of aviation turbine fuel (ATF) produced by public and private sector refineries, 8.2 million tonnes is consumed within the country and the rest is exported. Reliance’s twin refineries at Jamnagar produce close to 5 million tonnes of ATF, a large part of it is exported.

ATF demand in India is growing in double digits as more people fly. It rose by 11.8 per cent in the fiscal year ended March 31, 2024.

The Petroleum and Natural Gas Regulatory Board (PNGRB) had invited comments from the public and various stakeholders including oil marketing companies (OMCs), airport operators, and airlines operators for development of aviation turbine fuel (ATF) pipelines connecting various greenfield and brownfield existing and upcoming airports in India.