The Hindu Business Line : L&T gets Cairn engg services contract for pipeline project

Mumbai, Feb. 21 Larsen and Toubro Ltd has been awarded an engineering, procurement and construction (EPC) services contract by Cairn India for crude oil insulated pipeline and gas pipeline from Barmer (Rajasthan) to Salaya (Gujarat).

The work involves laying a cross-country 24-inch skin heat traced pipeline with PUF insulation from the Mangala terminal at Barmer (Rajasthan) to Salaya Oil Export terminal, near Jamnagar.

The pipeline would be 330 km south from the Mangala Field to a pump station and oil take-off point at Viramgam. From Viramgam the pipeline would continue for 261 km southwest up to an export oil terminal at Salaya.

Gas pipeline

Another pipeline of 8-inch diameter will be laid for transporting natural gas from the Raageshwari Fields. This will be alongside the 24-inch pipeline for feeding gas generator sets at 32 sites en route. The gas generator sets are primarily for producing electricity for the ‘Skin Effect Heat Management System’ to maintain the fluidity of the waxy crude.

L&T’s Pipeline Engineering Centre – L&T Gulf – will provide complete engineering services for the pipeline and intermediate facilities. The company is a joint venture of L&T and Gulf Interstate, Houston.

Cairn has a resource base of 3.6 billion barrels of oil equivalent in place. Field developmental activities have commenced with a targeted production of over 150,000 bopd. The export oil pipeline completion will match the evacuation plans of Cairn for H2 2009, L&T said.

Mr Rahul Dhir, Chief Executive, Cairn India, said: “This is another milestone in the development of these valuable resources from Rajasthan and we remain confident of achieving first oil in the second half of 2009.”

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