Petronet MHB Limited (PMHBL) was incorporated on 31 July 1998 under common carrier principle to provide petroleum product transportation facility from Mangalore Refinery (MRPL) to the Oil Marketing Company (OMCs) terminals at Hassan & Devangunthi (Bangalore). The total cost of the project was Rs 640 crores and the length of the pipeline is 362.36 kms. The main objective is to transport petroleum products to the customers through OMCs in order to reduce road / rail transportation, reduce environmental impact and safe delivery.
It was a company promoted by M/s Petronet India Ltd. (PIL) with 66% equity, M/s Hindustan Petroleum Corp. Ltd. (HPCL) with 26% equity and M/s IL&FS with 8% equity. ONGC stepped in as strategic partner with 23% equity in April 2003. After PMHBL underwent corporate debt restructuring in 2006, HPCL & ONGC were holding 29% equity each, consortium of nationalized banks was holding 34% equity and PIL & ILFS was holding 8% equity in the Company. Further debt restructuring led to exit of PIL during the year 2016, banks during the year 2020 and IL&FS during the year 2023. At present, PMHBL is a subsidiary company of ONGC and joint venture with HPCL holding equal equity of 50% each.
The company started commercial operations in 2003-04. PMHBL pipeline is transporting petroleum products such as MS (petrol), HSD (diesel), and Aviation Turbine Fuel (ATF) by way of bulk transportation to HPCL, BPCL, IOCL and MRPL at Hassan and Devangunthi (Bangalore). Private players like Reliance, Nayara and Shell are secondary customers of OMCs from these terminals. The licensed capacity of PMHBL pipeline is 5.6 MMTPA and the full design capacity is 8.5 MMTPA.
