Reliance Industries Ltd has requested access to the pipelines and storage facilities that public sector oil companies have developed over the years. These pipelines and storages are used for supplying jet fuel (ATF) from depots and refineries to airports. Reliance is aiming to expand its share of the fuel trade at some of Asia’s busiest airports.
The company made this suggestion in its response to a draft regulation by the oil regulator PNGRB. The regulation proposes that ATF should be supplied to all current and future airports through pipelines accessible to any supplier. The goal is to increase competition and reduce fuel costs.
Although the fuel market is open, planes at the busiest airports in India are currently fueled by pipelines constructed by state-owned companies. These companies include Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL).
For more than a decade, Reliance has been seeking access to these pipelines, particularly those supplying ATF to Mumbai airport. The company stated that “the common carrier pipeline scope 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.”
Of the 17.12 million tones of ATF produced by public and private sector refineries, 8.2 million tones is consumed domestically while the rest is exported. Reliance’s twin refineries in Jamnagar produce nearly 5 million tones of ATF, with a significant portion being exported.
The demand for ATF in India is growing rapidly as air travel increases. In the fiscal year ending March 31, 2024, ATF demand rose by 11.8%.
The Petroleum and Natural Gas Regulatory Board (PNGRB) had invited comments from the public and various stakeholders. These include oil marketing companies, airport operators, and airline operators. The comments were sought for the development of ATF pipelines connecting various existing and upcoming airports in India.