Reliance begins work on Kakinada to Uran pipeline

Vol 9, PW 14 (20 Oct 05) Midstream & Downstream

Reliance might have reined in its ambition to lay a cross-country network of petroleum product pipelines but it is going ahead with plans for a 1000-km pipeline to evacuate gas from its discovery in the Krishna Godavari basin.

By the 13th October deadline, Reliances headquarters in Mumbai received bids from contractors to carry out horizontal drilling for the pipeline that will begin at Kakinada in Andhra Pradesh and end at Uran in Maharashtra. They sought bids from five contractors and received offers from four, says an industry source.

The response is good. Reliance has already received bids for turbines required for the gas compressors.

Shortly expected are tenders for other long-lead items such as pipes, sectionalising valves, and cathodic protection systems, SCADA, telecoms and others. At Kakinada, the pipeline will begin with a 48-inch diameter and receive gas from Reliances KG-DWN-98/3 block.

The pipeline diameter will reduce to 36-inch at Uran. Official notification to acquire land for the pipeline has already been published and actual work to acquire land for the pipeline will begin shortly.

Reliance plans to begin this in Andhra Pradesh through which 600-km of the pipeline will pass. State authorities originally appointed just one competent authority to carry out the land acquisition proceedings but Reliance asked for two additional competent authorities, we learn.

The pipeline will pass through eight districts of Andhra Pradesh and one person will not be able to carry out land acquisition proceedings. Reliance will need to sign individual agreements with several thousand farmers and pay compensation.

Its pipeline will pass through 170-km of Karnataka, 200-km of Maharashtra and about 500-km within Gujarat. From Uran it is expected to travel through Gujarat to the Kawas and Gandhar power stations, but a decision on this hinges on a formal agreement between Reliance and NTPC still as elusive as ever.

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