Cairn pipeline from Barmer to Bhogat almost ready

Vol 17, PW 18 (24 Apr 14) Midstream & Downstream

After five years Cairn India is close to completing its 670-km oil pipeline from Barmer in Rajasthan to Bhogat on the Gujarat coast.

Cairn is preparing to commission the 24-inch diameter, 180,000 b/d pipeline in the next 60 days or by end-June, once the last two stretches of 64-km and 10-km are completed. “Cairn has resolved its problems with local farmers,” reports a Gandhinagar government source.

“Pipeline laying work is underway.” Cairn stuck to its final offer of Rs37,000/'guntha' ($600) of land (40 gunthas = 1 acre) despite demands of Rs100,000/guntha ($1700) in what became a long drawn out battle.

Farmers eventually backed down and accepted the Rs37,000 rate to give Right of User (RoU) permission to Cairn. "This is a huge amount," adds a Gujarat official.

"They wouldn't get this much money if they sold their land." Larsen & Toubro took almost two years to lay the 6.5-km stretch from Bhanvad to Kalyanpur in Gujarat's Devbhoomi Dwarka district because of the disruption - the same time it took Cairn to lay the main pipeline from Barmer to Salaya.

Oil will flow to the 160-hectare Bhogat oil terminal, about eight-km from the coast and then exported by sea, after running through two 24-inch subsea export pipelines to a 248-tonne Single Point Mooring system (SPM).