AG&P angry as IndianOil revises pipeline route

Vol 23, PW 2 (14 Nov 19) Midstream & Downstream

Some blame Manila-headquartered AG&P for not keeping itself informed and some blame the PNGRB for not being more communicative.

Either way, the PNGRB has scheduled an open house on November 25 to find a way forward after AG&P wasted time and money submitting an application by October to lay a 20-km pipeline from its proposed Karaikal LNG terminal in Puducherry to IndianOil's upcoming Ennore to Tuticorin pipeline in Kerala which had in the meantime been re-routed without AG&P's knowledge. Sources say AG&P made a mistake depending solely on an authorisation letter granted by the PNGRB to IOC in 2015 for the 1250-km Ennore to Tuticorin pipeline which resulted in AG&P wrongly calculating the length of a tie-in pipeline from Karaikal as not more than 20-km.

AG&P failed to notice IOC had on April 18, 2019 submitted a re-routing proposal to the PNGRB which in effect means AG&P's tie-in pipeline needs to be 120-km long not just 20-km. IOC general manager P Sham Rao confirmed this change in a two-page letter submitted to PNGRB secretary Vandana Sharma on November 8.

When contacted, an angry AG&P source claims the PNGRB failed to upload the new pipeline route map in time. "The PNGRB uploaded the map only in August or September," he complains.

AG&P must now re-work the entire project cost and schedule unless the PNGRB miraculously finds another solution at the November 25 open house.