The Hindu Business Line : GAIL awards pipeline project to Chinese-led consortium

Advantage China
The work for Spread-II of the Dahej-Uran Pipeline project, for the 147-km Jalalpur (Gujarat)-Bhoirpada (Maharashtra) stretch, was awarded middle of this year at a cost of Rs 129.88 crore to DQE-Essar.
DQE has applied to the Government for opening an office in Delhi.

New Delhi , Sept. 26

Chinese companies seem all set to tap gas pipeline projects in the country. After winning in the international bidding process of Reliance Industries Ltd (RIL), China has emerged a winner once again for a key project of State-owned GAIL (India) Ltd.

A consortium led by the Chinese company DQE has been awarded work for Spread-II of GAIL's Dahej-Uran pipeline project (DUPL). Earlier, China Petroleum Pipeline Engineering Corporation had been awarded the project to lay the east-west and east-north pipelines of RIL, which will carry gas from the KG Basin to the western and northern markets.

A senior GAIL executive told Business Line that the work for Spread-II of DUPL, for the 147-km Jalalpur (Gujarat)-Bhoirpada (Maharashtra) stretch, was awarded middle of this year at a cost of Rs 129.88 crore to DQE-Essar.

"The work was awarded through international competitive bidding, for which bids were invited in October 2005. The estimated project cost of DUPL is Rs 1,830 crore," he said.

DQE has since applied to the Government for opening an office in Delhi. RBI had sought confirmation from the Ministry of Petroleum and Natural Gas on whether the Chinese company had been awarded any contract for the DUPL project. The nodal Ministry is understood to have given the confirmation.

Advantage Maharashtra

According to GAIL officials, with the completion of the DUPL project, the Maharashtra market will benefit the most. The inter-state gas pipeline would link the two important gas markets of Gujarat and Maharashtra. The 474-km long DUPL pipeline will have a capacity of 12 million standard cubic metre per day of gas.

"Once the DUPL project is commissioned, the Gujarat and Maharashtra markets shall be interconnected, resulting in Maharashtra gaining access to multiple gas sources. This shall also lead to bringing much needed relief to the power generators in Maharashtra," he explained.

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