Essar Constructions Limited (ECL) has bagged a prestigious contract from M/s. Gujarat State Petronet Ltd (GSPL- a Government of Gujarat undertaking) for execution of the Baroda-Ahmedabad-Kalol section of GSPL's gas pipeline network in Gujarat. This is a priority project for the Gujarat government as the pipeline is to supply gas to Ahmedabad, M/s. Ahmedabad Electric Co. (AEC), and the nearby IFFCO Fertilizer Plant.
This marks the entry of Essar into the lucrative oil & gas pipeline sector. Essar was involved in laying sub-sea gas pipelines in the mid-eighties.
The contract has been awarded on EPC basis to the consortium of ECL, Stroytransgaz (STG) of Russia, and Indian Oil Corporation Ltd. (IOCL), for a contract value of Rs198.13 crore. The project is to be completed in 12 months.
The project has been awarded to the Essar-led consortium against stiff competition from various leading construction companies, including a couple of international construction companies.
The contract involves laying of high-pressure gas pipelines consisting of a main pipeline of 24" diameter, 133km long, building terminal facilities at Baroda and Kalol, and 12 intermediate valve stations/ tap off stations. Also, branch lines of 18"/12" diameter are to be laid for M/s. Ahmedabad Electric Co. (AEC) (6.4km) and IFFCO Fertilizer Plant (1.2km) with metering stations.
The contract is technically challenging as in addition to 100 % X-ray quality welding for the entire 140km, it also involves crossing of two major rivers and two major canals wherein the pipeline will be laid by ‘horizontal directional drilling’ method. The pipeline system will be operated by the consortium for a period of one month before handing the reins over to GSPL.
The Engineering, Procurement & Construction (EPC) contract consists of residual engineering, procurement and supply (the major part being 24000 MT of API X-65 quality steel pipes), pipeline laying and associated construction work, testing, commissioning and operation with a major share of work to be done by Essar Constructions Ltd.
Essar Constructions Ltd. is a part of the Rs17000 crore Essar Group having interests in core sector areas of Steel, Shipping, Power, Oil & Gas and Telecom.