Pipelines are used for the transportation of crude oil, petroleum products and natural gas. The merits of pipeline transportation in India are as follows.
(a) Pipelines help in the growth of refineries, petrochemicals, fertilizer factories and big thermal power plants by providing raw materials directly from the producing areas to the factories and plants.
(b) Pipelines can take petroleum and natural gas to places far off from the oil and gas fields. They help in the setting up of refineries in far off inland locations to cater to the demands of inland markets. The refineries of Barauni, Mathura and Panipat were possible due to the development of pipelines.
(c) The initial cost of laying the pipelines may be high but subsequent running costs are nominal.
(d) Pipelines transport petroleum and natural gas directly from the producing areas to demand areas. Hence, they rule out trans-shipment losses and delays.
