Essar bids lowest to replace IOC pipeline

Vol 19, PW 15 (07 Apr 16) News in Brief

After a long history of leaks, seam failures and safety scares, IndianOil is moving fast to replace its 18-inch diameter 148-km oil products pipeline from Koyali to Viramgam in Gujarat.

Essar Projects is expected to win a LoA to replace the pipeline after emerging lowest bidder quoting Rs88cr ($13m) when price bids were opened on March 23. Next came Ace Pipeline Contracts quoting Rs100cr ($15m) followed by Kalpataru Power Transmission at Rs105cr ($15.8m).

Originally designed for crude imports, the Koyali to Viramgam pipeline has been operating for the last 38 years as a branch of the Salaya to Mathura pipeline. Since 2003 is was re-configured as an oil products pipeline to transport mainly petrol, diesel and kerosene.

When originally commissioned in 1978 there were 41 seam failures during hydro-testing so the maximum operating pressure was kept at 56-kg/sq cm instead of the regular 72.9-kg/sq cm. IndianOil has procured pipe from Ratnamani Metals & Tubes which it will supply to Essar to lay the pipeline within 18 months of the LoA.