GAIL targets end-2018 for R-LNG to Mangalore

Vol 20, PW 17 (18 May 17) Midstream & Downstream

If you believe GAIL customers in Mangalore can expect to begin receiving R-LNG from Petronet-LNG's redundant Kochi terminal towards the end of next year (2018).

After awarding three stretches of the 460-km gas evacuation pipeline, GAIL tells us it is pleased with the smooth pace of pipeline laying work over the past month. "The Kerala government (led by Communist Party chief minister Pinarayi Vijayan) is very supportive," says a company source.

"Whenever there are problems with farmers local government officials step in to help us. This is a change from the previous (Congress) government." When completed GAIL says the pipeline will deliver 2m cm/d R-LNG to Mangalore Chemicals & Fertilisers, JBF Petrochemicals, Mangalore Refinery and Petrochemicals, Kudremukh Iron Ore and ONGC Mangalore Petrochemicals.

The pipeline, adds GAIL, will act as a driving force for future retail gas networks in Mangalore and towns along the route. Still to be awarded is a final 180-km stretch for which GAIL and project consultant MECON are looking for a pipeline laying contractor.

On sale are tender documents from May 11 to June 1. Expect interest from IL&FS Engineering & Construction, Kalpataru Power, Corrtech International, Jaihind Projects and JSIW Infrastructure to name a few.

MECON says the 180-km stretch will be split into two sections together worth Rs300cr ($47m) if GAIL uses 30-inch diameter pipes.