GAIL signs Punj Lloyd for Dabhol-Bangalore gas line construction

Oct. 18, 2010
GAIL (India) Ltd. signed a $153 million contract with Punj Lloyd Ltd. for laying its 1,400-km Dabhol-Bangalore Pipeline project, describing the agreement as part of its commitment to bring natural gas supplies to Karnataka by 2012.

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Oct. 18 -- GAIL (India) Ltd. signed a $153 million contract with Punj Lloyd Ltd. for laying its 1,400-km Dabhol-Bangalore Pipeline project, describing the agreement as part of its commitment to bring natural gas supplies to Karnataka by 2012. Construction will start by November and the pipeline will be ready by March 2012. Following commissioning, GAIL expects operations to begin by June 2012.

GAIL approved the 16 million cu m/day (565 MMcfd), 30-in. OD project in June 2009 at an estimated total cost of Rs. 5,000 crore and has since applied for statutory permission for railway, highway, and river crossings.

GAIL divided the project—running from Dabhol (Ratnagiri district, Maharashtra) to Bidadi (Ramnagar district, Karnataka) and including two spur lines (from Gokak, Belgaum district, Karnataka to Goa, and from Sulivara, South Bangalore district, Karnataka to Bangalore)—into 10 spreads. Of the 10 spreads, GAIL awarded 7 to Punj Lloyd Ltd, 2 to KSS-KSSIIPL Consortium, and 1 to Advance Stimul Consortium.

Including this order, GAIL has ordered about Rs. 2,000 crore worth of line pipe and pipelaying services over the past 3 months. GAIL has also been authorized to construct gas lines between Chainsa and Hissar, and Kochi and Bangalore (OGJ, Feb. 9, 2009, p. 60).

Contact Christopher E. Smith at [email protected].