Expect more GAIL pipeline contracts after Jan 2015

Vol 18, PW 5 (23 Oct 14) Midstream & Downstream

Pipe manufacturers and pipeline laying contractors can expect more contracts from GAIL after January next year.

By then GAIL’s project management consultant Engineers India (EIL) will have completed a survey of its gas pipeline network in Andhra Pradesh, allowing GAIL to issue tenders for pipeline needing repair or replacement. GAIL hired EIL after a devastating fire on June 27 at a corroded pipeline in the state’s East Godavari district which left scores dead.

Following the accident, the Oil Industry Safety Directorate (OISD) directed GAIL to survey its entire pipeline network. “We’re surveying around 900-km pipeline of various diameters in GAIL’s KG basin network,” confirms EIL.

“GAIL has asked us to assess the health of its pipeline network in Andhra Pradesh.” EIL, he adds, is classifying the results into three categories: pipeline sections which can be cleaned (‘intelligent pigging’) of deposits and used again; corroded sections which need minor repairs due to metal loss; and sections which are too damaged/corroded and need replacement.

“All ‘non-piggable’ and badly corroded pipes will be replaced,” adds EIL. GAIL awarded its first set of pipeline replacement contracts for 109-km at Rs133cr ($22m) in September to pipeline laying contractor Kalpataru, which mobilised last month but cannot begin work because of opposition by local farmers who want it to wait until the end of the paddy harvest in November.