Reliance to begin laying KG gas pipeline in October

Vol 9, PW 22 (23 Feb 06) Midstream & Downstream
     

Reliance plans to begin laying a gas pipeline to transport gas from its KG fields to markets in western India in October later this year.

PETROWATCH learns the pipeline will start from Kakinada in Andhra Pradesh the landfall point for gas from Mukesh Ambani-owned Reliances KG-DWN-98/3 block run to Hyderabad and on to Uran in Maharashtra and terminate at Ahmedabad in Gujarat. Reliance wants to complete the pipeline before the monsoon in 2008, in line with the companys plans to begin commercial supplies of gas from the KG field by July 2008.

Reliance has already identified the land that needs to be bought to lay the pipeline and on 16th July last year the government issued the all-important Right of User notification, allowing construction to begin. Actual purchase of land and payment of compensation to the owners will be done as laying starts.

Reliance has decided to keep the diameter of the pipeline as 48-inches throughout the entire 1500-km length. A total 700,000 tonnes of pipe will be required for the pipeline.

By early February, Reliance had, placed orders for about 100,000 tonnes. These orders have been placed with overseas suppliers, we are told.

Reliance is open to purchasing both HSAW and LSAW pipes for the project, as long as it meets its technical specifications. Contracts for laying the pipeline have yet to be awarded.

Construction will be carried out in eight spreads so that work is speeded up. When commissioned, the pipeline will operate at a pressure of 90-bar.

Initially, the pipeline will carry 40m cm/d gas with one compressor at the intake point. But capacity can be raised to 100m cm/d with more compressors.

Industry sources say the pipeline will function as a common carrier. They are open to carrying gas in the pipeline from any supplier, we hear.

This pipeline is best suited to carry all gas that will land at Kakinada, we hear. Even gas from GSPCs Deen Dayal field in the KG basin.

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