EIL contribution towards Indian Energy Security

EIL contribution towards Indian Energy Security2014

Breaking the Malthusian Trap, the human quest for better living standards in the midst of exploding world population, accelerated the energy appetite of world to the extent that countries across the planet are scrambling to secure its either poles and India, with 1.2 Billion energy seeking residents, is no different.

After, more than 40 years of oil embargo, Energy Security still remains a delusive concept. We have yet to come up with a clear definition of Energy Security which can accommodate producers and consumers perspective.

Supply side equation of the energy and energy products has emerged as one of pre-requisite for the sustainable economic growth of the developing economy and energy deficient like India with close to 80% dependence on the crude oil import. Although, country has a diversified basket in terms of crude supplier but with around 62% dependence on Middle East supplies, and with majority of it passing through Strait of Hormuz, it is imperative that country secures its long term supplies, cater for short term fluctuations, augment domestic production and ensure ample availability of refined products to its residents. Indian hydrocarbon sector with its assertiveness aggressiveness has kept itself to the task and ensured its superlative performance on these imperatives. Supporting this energy security endeavors of Oil & Gas majors of Indian hydrocarbon industry across it value chain is, Engineers India Limited, an organization which over its existence of close to five decades has provided an home grown solution from concept to commissioning to the mega oil & gas projects in the country and today has positioned itself as the key player in the hydrocarbon industry in this part of the world.

EIL, established in 1965 as a joint venture between Govt. of India and Bechtel Corporation of USA competed with global majors and with the strong determination started its first flight as engineering organization with Cochin Refinery Expansion. Since then, it has emerged as leading consultancy organization in the country with its footprints in 19 of the 22 operating refineries which includes envious milestone of providing design engineering and consultancy services to 10 grass root refineries in the country. Thus, assuring countrys transformation from net importer of refining products to one of the largest and fastest growing crude oil refiner and exporter of refining products in Asia.On the upstream segment of the value chain, it is very difficult to imagine Indian energy scenario without Bombay High and it was Engineers India as an engineering company where all the strategic thinking and execution plans were developed and put to create these invaluable national assets since early 1970s and is continuing today with development/revamp of exploration infrastructure in other sedimentary basin of the country. The geopolitics of oil is unpredictable. Over the period of time since the Great Recession, World economy had taken $100/barrel oil as reality which has kept both consumers and producing countries reasonable satisfied. It is elementary that the production glut that we are witness to today is the result of new production facilities envisaged couple of years ago considering $100/barrel as Holy Grail of Oil Economy. To create a buffer for short term supplies fluctuations, to cushion the effect of price fluctuations and to ensure undisruptive supply to the refining units, Government of Indian is developing crude oil storages facilities. Phase 1 of this coveted program for which EIL is the Project Management Consultants comprises of strategic petroleum reserves involving a niche technology where in imported crude oil is to be stored in underground unlined rock caverns. The projects at three strategic locations are under construction and at advance stage of completion and EIL with its excellence in technology assimilation is providing complete range of services for these caverns. Companys commitment towards pursuit for energy secure India was further affirmed with acquisition of two exploration blocks under NELP IX along with its consortium partners. As EIL has grown over the years, it has helped creating a formidable infrastructural wealth of refineries, offshore platforms, pipelines, petrochemicals on one hand and on the other created a vast network of Indian manufacturers required to support such mega projects.Another key energy sources which are imperative for Indias energy security are renewable especially Solar. Our country is blessed with abundant sunshine and it is imperative that this gift of nature is optimally and sustainably harnessed to provide power across the countrys geographies. EIL is leveraging its extensive experience, skilled resource base and technological knowhow to develop competencies in the areas of renewable and has provided its engineering services for 125MW Solar thermal plant which is largest in India and amongst the largest CSP projects in the world.

Seemingly easy to describe all the above aspects call upon a very high level of professional expertise and comprehension which has been carried out in EIL many times over with repeated perfection and a very high level of accuracy. The knowledge and professional expertise required to execute the described processes lies deeply embedded in EILs DNA with its exclusive class of engineers drawn from top notch engineering colleges, who have grown with the company and making EIL grow with them. The company not withstanding its formidable legacy and propelled by present competent team, continues as a leader in wealth creation and countrys energy security by adopting futuristic technologies for harmonizing conventional hydrocarbon industry with environment protection, reduced carbon foot print, extensive harnessing of renewable sources of energy and a strong global presence.