Blame PSL for delay to DVPL-2 pipeline

Vol 14, PW 5 (26 Aug 10) Midstream & Downstream

Pipe supplier PSL Pipeline is blamed by contractors Punj Lloyd and Corrtech for delays to GAIL’s second 610-km pipeline from Dahej in Gujarat to Vijaipur in Madhya Pradesh (DVPL-2), designed to carry more R-LNG from Petronet-LNG’s Dahej import terminal to north Indian markets.

PETROWATCH learns only 50% of the under-construction DVPL-2 pipeline has been laid so far, even though work was scheduled for completion this month (August). GAIL hired three contractors on August 19 a year ago to lay the pipeline within 12 months.

Punj won a 120-km stretch, Corrtech won a 124-km stretch and Turkey’s Fernas won a 366-km stretch. “PSL has still not supplied the pipe,” complains a Corrtech source.

“Our work has been held up because of that.” Punj agrees.

“Not even 50% of our work is done, because of PSL,” says a company source. Delhi-based PSL won the contract to supply 100,000 tonnes of ‘X-80 grade’ steel pipe on September 19 last year for DVPL-2.

PSL was to deliver this pipe, equivalent to approximately 200-km of the total 610-km pipeline length, to GAIL by July this year. “PSL has yet to supply the full quantity,” confirms a senior GAIL source.

But he adds that work on the pipeline is progressing well nevertheless and it should be ready by the end of this December. “We’ve already welded 60% of the total pipeline,” says GAIL.

“‘Hydro-testing’ has been carried out at two stretches.” When contacted a PSL source passes the buck, blaming GAIL for any delay, saying PSL has supplied all contracted pipe at several sites along the proposed route.

“GAIL is having problems in securing the RoU (Right of User permission),” he says. “Rainfall has also delayed work.

” Corrtech and Punj admit securing RoU permission has been challenging, especially in Gujarat. Our GAIL source also admitted that “minor RoU issues” have delayed work but describes this as “normal.