Indian pipe companies dominate Rs 550 crore GAIL contract

• Posted in OilGas
• on June 21, 2016
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Three Indian pipe manufacturers have walked away with a major pie of a Rs 550 crore order from GAIL as the state-run gas utility began spending on building the main stretch of Urja Ganga — PM Narendra Modi’s proposed energy lifeline to revive fertilizer units and supply cleaner fuel in the eastern region.

Sources said Gas Authority of India (Limited) has placed the order for 341km of pipes with Jindal Saw, Essar Steel and MAN Industries. China’s Zhongyou BSS (Qinhuangdao) Petropipe is the lone overseas company to be awarded part of the contract, indicating competitiveness of Indian manufacturing.
The order is for linking Phulpur in UP with Dobhi in Bihar, which is part of the Phulpur-Haldia pipeline. Work on spur lines from Gaya to Barauni via Patna in Bihar are already in progress. GAIL is set to complete the Rs 12,000-crore Phulpur-Haldia-Dhamra (Odisha) project in three phases
The project envisages laying a 2,050km pipeline for supplying cleaner and cheaper fuel to Allahabad in UP; Patna, Gaya, Chapra, Siwan, Gopalganj, Muzaffarpur, Bettiah and Bhagalpur in Bihar; Bokaro, Dhanbad, Ranchi and Jamshedpur in Jharkhand; and Asansol, Durgapur and Kolkata in West Bengal.
The pipeline will help revive defunct fertilizer plants in Gorakhpur in UP, Barauni in Bihar, Sindri in Jharkhand and Durgapur in West Bengal by supplying gas, considered a cheaper feedstock than naphtha. In addition, the pipeline will also supply natural gas to refineries in Barauni and Haldia, steel industries, power plants and other large manufacturing units in the region. Josh Jackson Jersey

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