Hindustan Mittal Energy crude pipeline to Bhatinda

Vol 12, PW 13 (13 Nov 08) Midstream & Downstream

Hindustan Mittal Energy (HME) has secured approval for a 1020.5-km-long crude oil pipeline from India’s largest private port at Mundra in Gujarat to its upcoming 9m t/y Bhatinda refinery in Punjab.

PETROWATCH learns that project management consultant Engineers India (EIL) issued a â€کlimited tender’ in early October to seven contractors for the assignment from Hindustan Mittal Pipelines, a new subsidiary of the HPCL (49%) and Mittal Energy Investments (49%) joint venture HME. SBI Capital Markets and IFCI together hold the remaining 2% of HME.

Contract details were announced at an 11:30am pre-bid meeting at the Engineers India Delhi office on October 31. Among the companies that attended were: Indian Oil Tanking and McConnell Dowell of Australia; Tehran Jonoob of Iran and Jaihind Projects; Punj Lloyd; Essar Construction’s pipeline division; KazStroy Services; Russia-based Zangas and KPTL (Kalpataru); and Larsen and Toubro.

“This was the first and last pre-bid meeting,â€‌ says a source that attended. “Four officials came from HPCL and EIL each.

â€‌ Interested companies were given details of the project and asked to confirm whether they would bid within five days. The proposed pipeline will cross Gujarat, Rajasthan and Haryana before entering Punjab and have three different diameters across its length.

“The pipeline route might deviate between half a kilometre to a few kilometres when we start laying it.â€‌ Engineers India prepared the detailed feasibility report for Hindustan Mittal Pipelines, which wants both technical and price bids from contractors by November 17.

“I think the contract will be awarded at the latest by December 15,â€‌ predicts a potential bidder. A HME source says the pipeline should be finished within 17 months of the contract award.

“We will take another month for pigging and commissioning trials.â€‌ Hindustan Mittal has already bought the pipe from Welspun.

A potential bidder, keen to keep any hard figures out of the news, offered a vague cost estimate of “at least Rs1000cr ($240m).â€‌