Bringing innovation and ingenuity to oil and gas projects

India will see a massive investment of USD 118 billion in oil and gas exploration as well as in setting up of natural gas infrastructure in the next few years as the country prepares to meet the needs of a fast growing economy, Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Steel, Government of India, had announced in late 2019. As much as USD 58 billion will be invested by 2023 in oil and gas exploration and production, while, another USD 60 billion will be put in creation of natural gas infrastructure such as pipelines, import terminals, etc.

For logistics companies, the biggest challenge in their strategy planning is designing special logistics solutions for challenging projects at the most difficult and unreachable terrains, with the use of high-end expertise such as portable bridges, pontoon ferries, girder bridges, motorised and hydraulic jacking equipment, etc. as per the project requirements. Especially for sectors such as oil and gas and fertilisers, these capabilities are vital due to size of equipment required for these large infrastructure projects and for the sweeping scope of project implementation at hand.

The oil and gas sector is one such sector that has special and demanding requirements from logistics partners. Given the sheer size and scale of projects being executed, especially in the downstream side of the oil and gas business in India, it requires logistics players to plan from the project conceptualisation phase which is approximately as much as two years in advance of a project even getting off the ground.

India will see a massive investment of USD 118 billion in oil and gas exploration as well as in setting up of natural gas infrastructure in the next few years as the country prepares to meet the needs of a fast growing economy, Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Steel, Government of India, had announced in late 2019. As much as USD 58 billion will be invested by 2023 in oil and gas exploration and production, while, another USD 60 billion will be put in creation of natural gas infrastructure such as pipelines, import terminals, etc.

Massive demand

Given these massive investments and demand, there is a lot of work to be done on the ground and in building out refineries, ports, jetties, special purpose causeways and other infrastructure to support this investment. Already ports across the country including Paradip and Kochi are being expanded, even as new facilities in Barmer in Rajasthan from Cairn also come on stream. Similarly, other private players in the downstream side, including behemoths such as Reliance and Rosenft (formerly Essar Oil) are also eyeing greenfield and brownfield expansions in this sector along with the massive capital outlay planned by government owned oil majors.

As the demand burgeons and logistics companies’ capabilities improve, these projects are being executed faster and with more skill. Aided by enhanced logistics teeth, projects that used to take four years or more now only take two or three years. While logistics companies themselves are now more capable of moving larger consignments across the country and worldwide (a unique feature of this sector is the sheer size of each component), oil and gas companies themselves are planning projects in advance, to avoid unforeseen and unwanted delays.

Expanding oil and gas capabilities

Leveraging its capabilities including warehousing, yard management, chemical storage, jetty operations and lifting equipment, Allcargo Logistics can cater to an assortment of requirements for the oil and gas sectors.

Allcargo’s main strength comes from not just leveraging its capabilities and skills, but also innovating on-the-go to meet unique project implementation challenges.

“Our projects and engineering division, for instance, was tasked to lift two units of VGO reactors, with each weighing 650 MT for BPCL refinery’s expansion in Kochi in three months. The weight of the reactor meant that this lift was simply not possible using conventional methods. After conducting a thorough examination, Allcargo commissioned a Terex Demag CC 6800 – 1200 MT crane, which was brought in from Singapore for completion of the project. This exemplary lift and execution remains one of the most innovative and proudest lifts in Allcargo’s journey,” said Rahul Rai, Head – Business Development and Key Account Management, Project Forwarding and Heavy Engineering Division, Allcargo Logistics.

“Over the last few years, we have built up our capabilities for oil and gas and chemical industries and also established a strong execution track record across them,” he continues.

Focus on efficiency

Allcargo helps customers increase their installation efficiency and site handling capabilities with their lifting and transport solutions. With complete focus on safety, the expertise spans across most revolutionary turnkey, end-to-end solutions for complex, out-of-gauge and over-dimensional cargo, which include factory-to-foundation movements and highly complicated, critical load solutions.

Allcargo’s self-owned fleet of trailers, hydraulic axles, cranes, girder bridges, barges and other equipment is among the most advanced and well-maintained to ensure complete efficiency on the job. With OHSAS and LEEA safety accreditations, vehicle tracking systems and highly qualified teams, the focus is on delivering excellence, every time.

Setting up a refinery comes with its unique set of challenges. Reliance was faced with such challenges when looking to expand its refinery in Jamnagar. Which is when the company commissioned Allcargo’s Crane Rental services to deliver a smooth execution of this refinery in what turned out to be Allcargo’s biggest single-site deployment till date, with a total of 73 cranes—ranging from 40-MT to 750-MT—deployed over a period of 30 months.

This project was supported by an on-site facility set up by Allcargo for the maintenance of cranes and inventory management, ensuring a 99%+ uptime throughout the project period. While Allcargo always possessed the experience and expertise to handle a project of this magnitude, its smooth execution was down more to the relationship and the levels of trust built between the Allcargo and Reliance teams.

Allcargo’s capabilities now extend overseas too. Phils Engineering has over the years been billed as one of the most reliable suppliers for sectors like oil & gas, petrochemicals, refineries, power and fertilisers. When Phils Engineering needed a partner who could move an oversized vessel from Mumbai to Nigeria, they chose the reliability of Allcargo. With an extensive study of the cargo and movement route, Allcargo’s team was able to deliver this Over-Dimensional Cargo from Padgha to the Mumbai port and from Mumbai to Nigeria, in a planned manner.

Given these capabilities, Allcargo has assiduously built up and a strong project execution record and can offer seamless, well-planned and timely services for even the most complex of oil and gas and fertiliser sector projects.