Work begins on Gujarat-style gas grid in Andhra

Vol 18, PW 2 (11 Sep 14) Midstream & Downstream

Chandrababu Naidu has a lot in common with his close political ally Prime Minister Narendra Modi.

Both are known for their decisive and swift implementation. Naidu, who took charge as Andhra Pradesh chief minister in June, now wants to copy the impressive 2200-km gas grid Modi set up in Gujarat.

“Naidu has directed us to cover all 13 districts of Andhra Pradesh (with a gas pipeline grid),” says a source at Andhra Pradesh Gas Development Corporation (APGDC), a state government joint venture with GAIL. APGDC is gearing up to hire an Engineering, Procurement and Management Consultant (EPMC) to manage the laying of a 188-km coastal pipeline from Kakinada to the state’s largest city Vizag to evacuate R-LNG from the Kakinada floating LNG terminal being developed by APGDC, GAIL, Shell and GdF as well as from Petronet-LNG’s proposed Gangavaram terminal.

APGDC invited bids on August 28 from companies interested in becoming the EPMC to manage everything from concept to design and supervise pipeline laying work. A pre-bid is slated for September 12 and tender documents are on sale right up to the September 30 bid deadline.

Originally conceived as a 301-km pipeline from Kakinada to Srikakulam, best known for its temple to the sun god, this project was later split in two by APGDC to give it time to find customers for the second 113-km stretch from Vizag to Srikakulam, which has less gas demand.