Prepared and edited by manveer shetty

1. UNDERGROUND CAVERN
PROJECT
Compiled & Created By
Manveer J Shetty-MBG-Marketing
Ravi-MBG-CSE

2. Vision & Mission of Project
Underground
VISION
"People will make wise, informed, choices as they manage cave, karst
and groundwater resources to protect the underground ecosystems for
the health of current and future generations".
MISSION
"build the necessary awareness and responsible attitudes towards
cave, karst and groundwater resources and their management needs
among the general public through educational and interpretive
programs."

3. SCOPE OF WORK
The project involves engineering, procurement,
construction and commissioning of systems for crude
oil receipt, pumping out, metering, recirculation,
heating, waste water treatment, utilities production,
flaring and operation buildings.

4. INTRODUCTION
• cavern - a large cave or a large chamber in a cave
• a geological formation consisting of an underground enclosure
with access from the surface of the ground or from the sea.
• Underground cavern project is for strategic storage of crude oil,
required to provide supplies during emergencies/disruption of
supplies .
• Underground rock caverns are considered the safest means of
storing hydrocarbons
• It could store crude oil to meet the country's demand for 15 days in
case of an emergency. It assumed significance because India would
depend on oil imports for 92 per cent of its crude oil needs by
2020, and because of the volatility in West Asia

5. Facts and Figures
• Total number of underground cavern projects in india are 4.
• GOI has decided to set up 5 MMT Strategic crude oil storages at Mangalore,
Vishakapattanam and Padur.
• located to coasts so that they are readily accessible to the refining sector
through marine distribution
• GOI has set up special purpose vehicle-INDIAN STRATEGIC PETROLEUM
RESERVES LTD under OIDB to implement, maintain and operate strategic
storage.
• India plans to store 136 Million Barrels till 2020.
COMPANY LOCATION PROJECT CAPACITY ESTIMATE STATUS
SKEC&KCT JV PADDUR 9.25MILLION BARREL 375 CRORE UNDER CONSTRUCTION
SKEC&KCT JV MANGALORE 10.25MILLION BARREL 400 CRORE UNDER CONSTRUCTION
HCC LTD PADDUR 9.25MILLION BARREL 373 CRORE UNDER CONSTRUCTION
HCC LTD VIZAG 7.30MILLION BARREL 380 CRORE COMPLETED

6. What are the necessities to undertake
these projects
• GOI proposes to construct underground rock cavern storage of
imported crude oil on detailed feasibility report prepared by
Engineers India Ltd in alliance with geostock Engineers
• GOI has set up special purpose vehicle-INDIAN STRATEGIC
PETROLEUM RESERVES LTD under OIDB to implement, maintain
and operate strategic storage.
• A company is appointed as the Project Management Consultants for
the project.
• Subcontracting enterprise executes the project by providing all
back up support in liasoning with local govt. bodies and for
implementing preliminary setup of site and main cavern works.

7. What does happen to crude oil?
A LIVE EXAMPLE
• Locatedamostly in Coastal region
• SKE&C, 60 Billion dollar Korean enterprise having a
• Crude Oil is transported fromconstruction cavern
vast and rich experience in the port to the of such
caverns has tied up with the Indian allies M/s Karma
through pipelines for the execution of this project for
Chand Taper (B) Ltd.
• Substations are set up in order to pump in to
a worth of INR 403 Crores.
• caverns or back to refineries on demandProject
Engineers India Limited is appointed as the
Management Consultants for the project.
• Nag & Rich Infract are the subcontractors to the JV for
the execution of this prestigious project of strategic
importance to the country.

8. Features of Caverns
•Located mostly in Coastal region.
•Crude Oil is transported from port to the cavern through pipelines
•Substations are set up inorder to pump in to caverns or back to refineries on
demand
•All the 4 Caverns are of similar dimensions with an approx. length of
2800m(30m height and 20 m wide)
•Oval in shape.
•Capacity of oil storage cavern-2.3MMT
•Total cavern length-4(700)m equals to a TOTAL -2800M
•Cavern height-30m and width-20m
•Total length of access tunnel – 1400m(12&8M WIDTH)
•Total water curtain length-6.5m high and width-1140m

9. EQUIPMENTS USED IN CAVERN CONSTRUCTION
Jumbo Rig
Charging Car
Short Crete Machine
Hydraulic Excavators
DG Sets
Wheel Loaders
Dumpers
Transit Mixers
Cranes
Dozers

10. EQUIPMENTS USED IN CAVERN CONSTRUCTION
Jumbo Rig
 Usage: To drill hole inside the tunnel
 Machine :Sandvick Mining ltd
 Model: DT820
 No. of machines reqd: 3 -4Nos

11. Charging Car
 Usage: To Charge the explosive
inside the tunnel
 Machine :Normat International Ltd
 Model: HIMEC
 No. of machines reqd: 3 No's

12. Short Crete
Machine
 Usage: To Concrete side walls
 Machine :Normat International Ltd
 Model: HIMEC
 No. of machines reqd: 3 Nos

13. Hydraulic
Excavators
 Usage: To Excavate the stone after
blasting and scaling is done
 Machine :Doosan Make
 Model: S-340,S-210
Capacity: 35 Ton and 20 Ton
 No. of machines reqd: 3 No's
Gmmco’s opportunity
 Promote CAT Hydraulic excavators mapped to the tonnage requirement
for the application
Machines Applicable:320D,329D,336
Revenue generation
 Parts revenue: Rs.75000/excavator/month approx.

14. DG Sets
 Usage: To supply power to the plant
 Machine :Greaves
 Capacity: 400KVA
 No. of machines reqd: 8 Nos
Gmmco’s opportunity
 Promote CAT DG sets mapped to the Power rating requirement
for the application
 Engines Applicable:320KVA/365KVA/500KVA
Revenue generation
 Parts revenue: Rs.2,43,500/engine/year approx
 Service revenue: Rs.14000/engine/year approx

15. Wheel Loaders
 Usage: To remove the material outside
 Machine :Caterpillar
 Model: 980H & 988F ,WA470(Komatsu)
 Capacity: 6.5Cu.m,4.5Cu.m,3.5Cu.m
 No. of machines : 5 Loaders
Revenue generation
 Parts revenue: Rs.22,00,000/Loader/year

16. Dumpers
 Usage: To remove the material outside
 Machine :Volvo
 Model: 400
 Capacity: 31 Ton
 No. of machines reqd: 18 Nos

17. Transit Mixers
 Usage: To remove the material outside
 Machine :Volvo
 Model: 400
 Capacity: 31 Ton
 No. of machines reqd: 18 Nos

18. Hydra Cranes
 Usage: Material Handling application
 Machine :Hydra Crane
 Model: HY12
 Capacity: 12 Ton
 No. of machines reqd: 1 No's

19. Track Type
Tractors
 Usage: To doze the material
 Machine :Caterpillar
 Model: D6G
 No. of machines reqd: 1 Nos
Revenue generation
 Parts revenue: Rs.50000/Dozer/year

20. Machineries utilized at the PADUR site
SL NO EQUIPMENT DETAIL MODEL CAPACITY TOTAL NO.S UNIT PRICE TOTAL PRICE
1 DRILL JUMBO DT 820 2BOOM 3NOS 3.10 CRORE 9.30 Crores
2 DRILL JUMBO DT 1130 3 BOOM 2NOS 5.21 CRORE 15.63 Crores
3 CHARGING CAR 9905BT 500KG/BASKET 2NOS 2.0CRORE 4 Crores
4 SHORT CRETE MACHINE 7110WPC 30M/H 2NOS 3.0CRORE 6 Crores
5 KOAMATSU LOADER W470 3.5CUM 1NOS 1 CRORE 1.00 Crores
6 CAT LOADER 980H 4.5CUM 3NOS 1.5CRORE 4.50 Crores
7 CAT LOADER 988H 6.5CUM 1NOS 1CRORE 1.00 Crores
8 EXCAVATORS S210 0.9CUM 1NOS 95LAKH 95 Lakhs
9 EXCAVATORS CS340 1.5CUM 2NOS 78LAKH 1.56 Crores
10 VOLVO DUMPERS 400 31TON 16NOS 67 LAKH 10.72 Crores
11 JCB BACKHOE LOADER 3DX 0.3CUM 1NO 19LAKH 19 Lakhs
12 HYDRA CRANE HY12 12TON 1NO 10LAKH 10 Lakhs
13 TRANS MIXER TM17 6CUM 3NOS 25LAKH 75Lakhs
14 BATCHING PLANT SW 30CUM/HOUR 1NO 38LAKH 38 Lakhs
15 COMPRESSOR 280 600CFM 1NO 9.8LAKH 9.8 Lakhs
16 TATA TRUCK 1109 09TON 2NO 9LAKH 18 Lakhs
17 GANTERY CRANE NA 15T0N 2N0 1.80 C 3.6 Crores
18 DG SETS NA 500KV 8NOS 22LAKH 1.76 Crores
19 DOZER D6G 17TON 1NO 65LAKH 65 Lakhs
20 UNIROUT PUMP ATLAS 200L/M 2NO 30LAKH 60Lakhs
• Each such project requires machineries worth Rs.61.86 Cr
approx.
• Mangalore received 3 UC projects necessitating 184 Cr worth
machineries for the storage capacity of 28.75 Million Barrels
(Total project cost for each project being 375 cr)

21. Future Scenario of Underground
cavern projects?
• India plans to store 136 Million Barrels of Crude oil
Storage.
• This storage will be used as strategic reserves for
the country during emergencies/disruption of
supplies
• India would depend on oil imports for 92 per cent of
its crude oil needs by 2020, and because of the
volatility in West Asia

22. SWOT Analysis For GMMCO
Strengths Weakness
 Gmmco’s strength of catering vast  Service support has to attain its
product lines of caterpillar, supporting Credibility
variety of application makes it a unique  Quality of support has to match with
dealer. the premium nature of the product.
 RUN model which makes it a tailor made  Lead time needs to cope up with the
supplier. competition-Product delivery, parts
 Single last dealer makes it more credible delivery and service support
Opportunity Threats
 Excavators will be manufactured  Competition is high
indigenously in the near future.  Risk factor
 More Underground projects are in the  Demands to be matched with
pipeline. continuous support on service and
 Gmmco’s tie up with Mercedes Benz will parts
be a major Boost in the On highway  Higher prices of machines due to
dumpers category imports leads to vulnerability.

23. SWOT Analysis for UCP
Strengths Weakness
 Development and utilization of  Shortage of domestic energy
underground space resources
 Protection of ecological environment,  Crude oil supply instability
resources utilization and sustainable  Security issues
development
Opportunity Threats
 In the next 20 years,growth in demand  High capital costs
for crude oil will be faster than domestic  Public access to this facility
growth rate of crude oil.  Product releases
 Providing cost effective and practical  Fires or explosions
engineering solutions  Cavern subsidence or collapse
 Any other activity that endangers
public health, safety, or constitutes a
threat to the environment

24. Snap shots

25. Advantages
• To ensure energy security in response to external supply disruptions
• Safest means of storing hydrocarbons
• Balance supply and demand
• control oil and gas prices fluctuations
• Withstand the emergency and safeguard the economic safety
• Highly strategic and safe storage
• Large storage capacity
• Strong security
• Less pollution
• Small footprint
• Short construction period
• Low investment

26. Conclusion
Underground cavern is the right solution – both technically feasible and
commercially viable – for LPG, crude oil storages.
The construction of underground facility is a technically challenging job;
successful completion of such projects depends on the right kind of
equipment, preparedness in case of eventualities, and great teamwork.
Fixed establishment cost is high during the construction compared to
variable cost. Any savings in time will more than compensate the additional
cost involved for such crashing.
Many construction projects of this kind provide opportunities for the
construction contractors and also for the engineers.
The safe and mass storage system is possible in an underground which
offers strategy storage for the country demand and the supply to demand
can be managed during war, etc.

27. THANK YOU