Second time lucky for Dadri to Panipat gas pipeline

Vol 12, PW 14 (27 Nov 08) Midstream & Downstream

Indian Oil is hoping that a second contractor hired to lay a 132-km-long 30-inch diameter steel pipeline to transport 10m cm/d from Dadri in Uttar Pradesh to its refinery in Panipat can finish the job.

This month Zangas of Russia and Indian partner Kalpataru Power Transmission were chosen to lay the remaining 98.8-km stretch of the 132-km-long pipeline after Pune-based Kirloskar Brothers fell behind its nine-month deadline from a January 21 award date this year to build the whole stretch for Rs44.95cr ($10.7m). Kirloskar, we learn, started work in May but only managed to lay 33.2-km of the pipeline, prompting IOC to find a new contractor.

PETROWATCH learns on November 19, the Zangas-Kalpataru consortium was lowest bidder in a new IOC tender to finish laying the pipeline from a GAIL â€کtap off’ on the HBJ pipeline at Dadri to its 12m t/y refinery at Panipat. This report also learns that four pipeline contractors submitted bids by the November 12 deadline to complete the job.

Zangas-Kalpataru was L-1 with a bid of Rs51.96cr ($12.4m); Tehran Jonoob of Iran and Jaihind Projects was L-2 with a bid of Rs59.96cr ($14.3m); KazStroyService was L-3 with a bid of Rs72.00cr ($17.1m) and Punj Lloyd was L-4 with the highest bid of Rs95.66cr $22.8m). “Zangas-KPTL should receive a Letter of Intent (LoI) from IOC in a week,â€‌ predicts an industry source.

“IOC wants the pipeline to be laid in four months from the date of award.â€‌ KazStroyService, the Zangas-Kalpataru and Tehran Jonoob and Jaihind Projects consortia, Essar Construction (pipeline division), Larsen and Toubro and Punj Lloyd all bid in the second tender.

In July a senior IOC source told PETROWATCH the pipeline would be commissioned by January next year. But the change of contractors means IOC will now end up paying more to get the job done behind schedule.

“IOC would have paid Rs44.95cr to Kirloskar for the entire length and will now pay Rs51.93cr for just the 98.8-km length to be finished.â€‌