Energy has been universally recognized as one of the most important resources for economic growth and development. Without a robust energy network, urban agglomeration and economic development in India isn’t possible. At present,the country imports about 83% crude oil. Thus, any fluctuation in the price of crude oil in the international market leads to increase in the price of oil and petroleum—affecting both the distribution channels and consumers.
In an attempt to avert such a situation and shield itself from supply disruptions in future, the government has been aggressively looking to install strategic oil reserves. The reserve would help the nation cope with increasing demand and when efficiently established, it would hold enough oil to meet the domestic requirements for over a month.
At present, most of the existing crude oil storages like Mangalore, Padur and Visakhapatnam are located on the east and west coasts of India, which are readily accessible to the refineries.
This, along with the existing non-strategic oil storages maintained by the state-run oil marketing companies like Hindustan Petroleum, Indian Oil Corporation, etc., would take the overall stock capacity to about 20 million tons.
Though we’re moving towards a more renewable energy ecosystem, it is not possible to change the existing infrastructure easily. For a strong infrastructure, we would have to rely on non-renewable energy as well. Thus, for transporting oil and petroleum, we require good pipeline transport that can be laid through difficult terrains.
Enhanced pipelines stroke networks of distribution immediately reflects in a higher consumption of carbon steel. Steel distribution companies like Sanjiv Mehta’s Shah Brothers Ispat in sync with manufacturers like Prashant Ruia’s Essar Steel or Navin Jindal’s JSPL can ensure high quality steel in India. Being available for pipe manufacturing and eventual laying and commissioning pipe network.
By promoting a progressive growth model and meeting the diversified demands, steel companies like Sanjiv Mehta’s Shah Brothers Ispat, Prashant Ruia’s Essar Steel India can ensure distribution of good quality carbon steel pipes in India.
For instance, Sanjiv Mehta is of the firm belief that to achieve global standards of the petroleum industry certified carbon steel meeting all quality parameters for steel pipe manufacturing is mandatory. Oil is moved through the pipelines by pump stations. The use of Carbon Steel pipes however isn’t just limited to oil as it also remains useful in Nuclear power and petrochemical plants as well.
With India aiming to become a $5 trillion economy by 2024-25, it would be important to invest in infrastructure as more development would mean more progress and growth of the nation in the coming years.
The demand of energy in India is expected to increase threefold by 2035 to 1,516 million tonnes of oil. Thus, using certified carbon steel for transferring of oil and gas along with strategic reserves is a great way to secure the country’s energy security.