2. Pipeline Opportunities
Pipeline is an established mode of transportation in the hydrocarbon industry worldwide
for decades and also in India. Pipelines are used to transport Crude Oil, Refined
Petroleum Products (HSD, SKO, MS, ATF, Naphtha, Black Oil, FO, LDO), Petrochemical
Products, Chemicals, LPG, Natural Gas, any other Gas.
Opportunities
This refer to the opportunity related to New Oil & Gas pipelines, please find below short
note on the Pipeline opportunity as we are in position to get the project awarded to the
represented company by us, which is capable to finish the project
As you are aware that GAIL India has reconfigured INR 12,000 crore Jagdishpur-Haldia
pipeline, which will connect Varanasi to the gas grid, to link the Dhamra LNG terminal.
The over 2,500-km line will be constructed in three phases and will also now connect
Dhamra LNG import terminal in Odisha.
Phase 1
In the first phase, a trunk pipeline from Phulpur (Allahabad) will be laid to Dobhi (Gaya)
in Bihar with spur lines to Barauni and Patna. The 755-km Phase-I project will cost Rs
3,200 crore and will be completed by December 2018.
The Phase-I project will supply gas to major industries such as the Barauni Refinery and
the Barauni fertilizer plant, which is being revived, besides power and steel plants. It will
also help in setting up of City Gas Networks in major cities enroute.
3. Phase 2
In Phase-II, a 1200-km line would be laid from Dobhi to Bokaro/Ranchi in Jharkhand
and Angul and Dharma in Odisha at the cost of Rs 5,565 crore. Phase-III will involve
laying a 583-km line to Haldia at the cost of Rs 3,425 crore. This pipeline will connect
Adani Group’s Dhamra LNG import terminal in Odisha
Phase 3
Phase-III will involve laying 583-km line to Haldia at the cost of Rs 3,425 crore.
Company’s Capability & Eligibility Criteria
Almost 50% is cost is INR 6000 Cr Pipes cost and 30% is construction Cost, Pie
Sizes are 36 inches and 30 Inches.
API Certification is must for Both Pipe and construction.
Turnover of the company must be at least INR 6000 Crores for qualifying for the
project.
Pipeline Experience Required for both 30 inch (24 inch Past experience) and 36
inch (30 Inch Past experience) pipelines.
Companys networth should be positive
Additional Project
GAIL is also investing additional INR 2,000 crore in replacing old pipelines in Cauvery
and Krishna Godavari area of Andhra Pradesh and Tamil Nadu as well as in Gujarat.
“GAIL is laying 700-km of new pipeline to replace 35-40 years old pipelines,”
4. Business Opportunities
Gas & Crude Pipelines
Ample opportunity to grow as a vendor for New Pipe Lines both for Gas & Crude as new
policy says that India is going to form National Gas Grid and in next five years approx
30,000 KM’s new pipe lines are going to be announced. Approx Value of projects is
USD 40 billion. Already 6000 KM’s new pipeline projects are announced and this will be
a good opportunity for Pipeline EPC Contractors, LSAW Pipe Suppliers and including
pipeline valves and auxiliary equipment.
IOCL Pipelines
The company is undertaking several projects such as integrated offshore crude oil
handling facilities at Paradip, de-bottlenecking of Salaya-Mathura-Pipeline, Paradip-
Raipur-Ranchi product pipeline, Paradip-Haldia-Budge-Budge-Durgapur LPG pipeline,
Viramgam-Kandla pipeline, construction of additional crude oil storage tanks at Vadinar,
Patna-Raxual-Baitalpur pipeline and dedicated ATF pipelines connecting Kolkata,
Guwahati and Delhi (T-3) airports.
IOC also transports liquefied natural gas and natural gas through pipelines with combined
capacity of liquid pipelines is over 75 million tonnes per annum and gas pipeline is 10
million standard cubic metres,"
Trans-national Pipelines
To augment the domestic supply of Natural Gas and LNG imports (Liquefied Natural
Gas), the Government is actively pursuing following pipeline projects:
Iran Pakistan India Pipeline : This project plans to bring gas from the fields of
Iran to India via Pakistan. A special Joint Working Group (JWG) has been set up
to implement this project by 2015. The project is worth US$ 4.0 billion for about
2000 km pipeline.
Myanmar Bangladesh India Pipeline : Indian companies ONGC Videsh Ltd
(OVL) and GAIL India Ltd jointly hold 30 per cent stake in offshore block A-1 in
Myanmar, where commercial gas discoveries of about 5 tcf were made in
January 2004. The block has a capacity to produce 20-25 mmscmd for a period
5. of 20 years. In February 2004, Myanmar decided to sell its 65 per cent share of
gas in block A-1 to GAIL. To transport gas from Myanmar, a transnational 800
km pipeline costing US$ 1 billion is being proposed (Source : MoPNG).
Turkmenistan-Afghanistan-Pakistan (TAP) pipeline : Daulatabad area of
Turkmenistan is reported to have sufficient gas reserves. There are plans to
extend pipeline to transport gas from this area to India.
PIPELINE COATINGS
Coating Systems For Old Gas & Crude pipe lines which are approx. 40000 KM’s
available for coatings and every year approx. 2000 KM will be released for coatings
from IOCL, GAIL, BPCL, OIL, HPCL, EIL, RIL, ESSAR and many other players. Approx
value of projects is INR 20,000 Crores. Year 2015-16 Approx 2200 KM’s pipe line will
be tendered for 2 Ply, 3 Layer PE/PP Coatings through tenders L1 System for supply
and then 2nd stage tenders for the contractors.
COMPONENTS OF A TRANSPORTATION PIPELINE SYSTEM
Pipe, Valves, Scraper traps, Insulating flanges, Flow tees, Fittings, Flanges Other
equipment attached to the pipe, Compressor station stations (for gas lines), Pumping
stations (for liquid lines), Metering and regulating stations, Delivery stations,
Intermediate pigging stations, Sectionalizing valve stations Tap-off points.
SEAMLESS TUBES & PIPES (LSAW)
The opportunity arises to supply and manufacture Seamless Tubes & Pipes with
state of the art plant in India with technology & equipments from acknowledged
world leaders in Seamless Tube & Pipe technology.
plant can be established with annual installed capacity of 220,000 M Tons for
Carbon & Alloy Steel Pipes and is to be equipped with modern manufacturing
machineries and latest testing facilities including Fusion Bonded Epoxy (FBE) and
3 layer Poly Ethylene (LPE) Coating Line.
need to be commissioned a state of the art PQF Mill and have also added a new
6. Quench and Temper Furnace, Up setter, Hydro tester, MAC EMI & UT and PMC
Threading machines. With the addition of these machines mill would be
technologically at par with the best seamless mills internationally.
Industries Serviced
Petroleum, Refineries & Fertilizers
Oil Drilling
Boilers, Heat Exchangers & Condenser Applications
Super Heater & Low Temperature Applications
Mechanical Tubing & Structural Application
Automobile Applications
General Engineering
Fluid Conveyance Applications
Bearing Steel Tube Industry
With Nortech Trinity you can be assured of getting booked your plant for forthcoming
pipe projects in India for several years.
If your company is interested in projects we will be glad to furnish more information after
establishing initial NDA & agreement and then Nortech Trinity will be happy to share all
the relevant information to take the decision of Go or No Go.
7. Pipeline Industry in India - Brief Introduction
Pipeline is an established mode of transportation in the hydrocarbon industry worldwide
for decades. Pipelines are used to transport Crude Oil, Refined Petroleum Products
(HSD, SKO, MS, ATF, Naphtha, Black Oil, FO, LDO), Petrochemical Products,
Chemicals, LPG, Natural Gas, any other Gas.
India is the sixth largest consumer of oil in the world and the ninth largest crude oil
importer. India’s oil and gas sector contributes over 15% to the Gross Domestic Product
(GDP). The Indian oil and gas industry is expected to be worth USD 139,814.7 million by
2015. India’s economic growth is closely connected to energy demand. The need for oil
and gas is therefore projected to grow further, providing vast opportunities for investment.
To meet this demand, the Government of India has adopted various policies, such as
allowing 100 per cent foreign direct investment (FDI) in many segments of the sector,
such as natural gas, petroleum products, pipelines, and refineries. This move along with
various others has made the oil and gas sector in India a more viable place to invest.
Market Highlights
The oil industry can be divided into three major components: upstream, midstream and
downstream. The upstream segment comprises Exploration and Production (E&P)
activities. The midstream segment is involved in storage and transportation of crude oil
and natural gas. The downstream segment is engaged in refining and production of
petroleum products, and processing, storage, marketing and transportation of
commodities such as crude oil and natural gas.
In India crude oil is produced Onshore and Offshore. Onshore fields are in
Assam/Nagaland, Arunachal Pradesh, Gujarat, and Tamil Nadu/ Andhra Pradesh. Oil
India Limited (OIL) and Oil and Natural Gas Commission (ONGC) have the onshore field
for crude oil production. Offshore production occurs at Bombay High run by ONGC and
Private/Joint Venture companies. For natural gas, onshore fields are at Assam, Tripura,
Gujarat, Tamil Nadu, Andhra Pradesh and Rajasthan. Offshore production of natural gas
takes place at the Western area of Bombay High.
8. India has 20 refineries out of which —17 are in the public sector and three in the private
sector. Few of the SEZs in this sector are Reliance Petroleum SEZ, Mangalore SEZ in
Karnataka, Gujarat Hydrocarbons and Power SEZ and Nagarjuna Oil Corporation in
Tamil Nadu.
9. Major Players
Public sector corporations dominate the Indian exploration and production sector. In
terms of the percentage share in total production Oil and Natural Gas Corporation
(ONGC) accounts for the highest share.
The second major player in the sector is also a public sector undertaking Oil India Limited
(OIL). Both of these undertakings account for about more than 70% of the total market.
The remaining share of the pie is cluttered with various private players in the market.
Names of the key players in the oil and gas industry in India are Oil India Ltd., Oil and
Natural Gas Commission, Indian Oil Corporation, Hindustan Petroleum Corporation Ltd.,
Bharat Petroleum Corporation Ltd., Gas Authority of India Ltd., Reliance Industries Ltd.,
Essar Oil, Adani Gas, Petronet LNG, Cairn Energy, Shell, British Gas and BP.
Sector Prospects
India has significant potential to discover new oil and gas basins since 78% of the
country’s sedimentary area is yet to be explored. Recent large-scale oil and gas
discoveries in the Krishna Godavari and Rajasthan basins have amply demonstrated this
potential.
Exploration and production spend in the country has doubled from about USD 5.2 billion
in 2010–11 to about USD 9.5 billion in 2014–15. Overall E&P spend is expected to be in
the range of USD 140–116 billion in the next 5–6 years.
This will also create a sustained demand for oil field services like drilling rigs, offshore
support vessels, tubular goods, and seismic services and equipment for constructing
process platforms, pipelines and collecting stations, as well as other surface facilities for
transportation of oil and gas from wells to delivery points.
The country’s gas pipeline coverage has increased substantially and has significant
potential for further expansion. India currently has a trunk gas pipelines network of 9,900
km with a transmission capacity of 292 MMSCMD.
10. The first crude oil pipeline in India was laid from Digboi oil fields to Digboi refinery.
However, the inherent advantages associated with pipeline were soon realized by users
as well as government and this led to development of this industry. Subsequently, a
number of product and crude oil pipelines were laid in the 60’s, 70’s and 80’s. Gas
pipelines have come into the scene from late eighties
In India, OIL (Oil India Limited) laid the first fully automated 1157 km long cross-country
pipeline of SouthEast Asia during 1960-63. The first cross-country product pipeline in
India was laid by Indian Oil Corporation Limited during 1962-64 to transport products from
Guwahati refinery to Siliguri. Both the pipeline systems are still in full operation.
The Salaya-Mathura Pipeline (SMPL) was built in 1978 to transport imported as well as
indigenous crude oil to two refineries of Indian Oil Corporation Ltd (IOCL) in Gujarat and
Mathura in Uttar Pradesh. This pipeline was later extended to feed IOCL’s Panipat
Refinery in Haryana. The country’s first single point mooring system was built in Vadinar
village in Gujarat coast for SMPL in.
Assam Gas Co. started gas pipeline network in Assam to distribute gas produced by OIL
the power plants, industries and households since sixties. India’s first cross country gas
pipeline--1700 km HaziraBijaipur-Jagdishpur (HBJ) network of was executed and
commissioned by GAIL (India) Ltd in 1987 with a gas transportation capacity of 18.2
MMSCMD mainly to link the gas sourced from Bombay South Basin offshore field. Since
expanded the HBJ Network now serves the states of Gujarat, Rajasthan, Madhya
Pradesh, Uttar Pradesh, Delhi and Haryana.
The Dahej-Vijaipur pipeline (DVPL), the India’s first pipeline to carry LNG. It was
constructed by GAIL. The 42 inch 770 km long onshore pipeline has capacity of 24
MMSCMD. LPG pipeline network In the country has increased to nearly 2500 Kms.
The East-west pipeline (EWPL) is one of the largest pipeline project executed in India
This pipeline had been implemented by Reliance Gas Transportation Infrastructure Ltd
(RGTIL) to transports gas from Reliance Industries Ltd RIL’s prolific Krishna Godavari
Basin KG Block to the four States of Andhra Pradesh, Karnataka, Maharashtra, and
Gujarat. The 1,385 km long 48 inch diameter EWPL network has a capacity transport 80
MMSCMD of gas.
Cairn India’s 670 km long 24” crude oil onshore pipeline Mangala Development Pipeline
(MDP) is the world’s longest continuously heated and insulated pipeline. This crude oil
pipeline is using Skin Effect Heat Management System (SEHMS) to ensure that the crude
oil remains above the Wax Appearance Temperature (WAT). Through out the pipeline.
Presently, India’s hydrocarbon pipeline infrastructure as in the year 2012 :- 19,300 km
for crude oil 16,293 km for gas 15,903 km for products.
11. Total length of crude oil trunk pipeline 9,537 km Total Capacity 138 mmt Total length of
trunk pipeline for Refined product 11,218 km – Total capacity of 76.3 mmtpa FY12 LPG
pipeline network by length 2,312 km- FY12
At present the total gas trunk pipeline network in India is more than 10,000 km. Gas
Authority of India Ltd (GAIL) approximately 7,850 km trunk pipeline with capacity to carry
150 MMSCMD gas RGTIL owns and operates East-West pipeline network of 1,385 km
length and capacity of 80 MMSCMD GSPCL has trunk pipeline network of approximately
1,070 KM.
ONGC Leading National Oil & Gas Exploration Company of India ONGC owns and
operates 8000 km onshore 4500 km offshore pipelines net work in its production areas.
GAIL INDIA Major PSU with Largest Gas Pipeline Network Indian Oil Corpn Ltd (IOCL)
Major Transnational, Diversified , Integrated energy Company of India. IOCL operates a
11,163 km network of crude, gas and product pipelines, with a capacity of 1.6 mbpd. This
is around 30 per cent of the nation’s total pipeline network. Hindustan Petroleum(HPCL)
Major PSU, Leading Refining & Marketing Company Bharat petroleum(BPCL) Major PSU,
Leading Refining & Marketing Company Oil India Ltd (OIL) PSU, Oil & Gas Exploration
and Transportation Company Gujarat State Petroleum Corpn (GSPC) Vertically
Integrated Energy Company across India & overseas Reliance India Ltd (RIL) Activities
span exploration & production of oil & gas, refining, marketing and petrochemicals Owns
& operates EWPL Cairn India Largest private sector producer of oil Owns & Operates
MDPL
12. N O T I C E:
This document (the “Information Teaser”) is only intended to give general information regarding an “Proposal to NRI
for India Entry Strategy” or “the Transaction” and Nortech Trinity India Private Ltd. (“the company”), and does not
purport to contain all information that may be required to evaluate any possible transaction and is not intended to
form the basis of any investment decision to acquire any part (or all) of the Company. This document cannot be
construed as a recommendation, an offer or an invitation to make an offer to acquire any interest or participation
in the Company or to enter into any type of contract under any jurisdiction. Recipients of this document should
ensure that they comply with all relevant legislation and rules that may be applicable to them. This document has
been prepared by Nortech Trinity India Private Limited (“the Advisors”) together with the management of the
Company. The content of this document is not verified by the Advisors or the Company. The Advisors and the
Company accept no liability or responsibility whatsoever for the contents, accuracy or completeness of this
document (including any statements with respect to projections or prospects of the deal and related assumptions)
or for infringement by any recipients of this document of legislation of any nature whatsoever. This document is
incomplete without reference to and should be viewed solely in conjunction with, any oral briefing provided by the
Advisors. It reflects prevailing conditions and our initial views as of this date which we reserve the right to change.
The Advisors are not and shall not be obliged to update or correct any information set out in this document. This
document is for the exclusive use of each person to whom it is addressed and their advisers, and is being supplied
on a confidential basis solely and may not be reproduced or further distributed to any other person or publication
in whole or in part for any purpose. The contents and information of this document and the document itself are
proprietary of the Company and may not be relied upon by or disclosed to any third persons, companies, enterprises
or institutions or used for any other purpose than in connection with the considering of the proposed Deal. The issue
of this document shall not be taken as any form of commitment on the part of the Company and it reserves the right
without advance notice, not to accept any proposal, nor to proceed with any transaction and to terminate
communications, conversations, or negotiations at any time prior to the signing of any other document or
agreement, without liability to any selected potential interested party or third party for any costs incurred in
submitting a proposal or otherwise. The information set out in this document will not form the basis of any contract.
In the case of a negotiation taking place, the successful interested party will be required to acknowledge in an
agreement that it has not relied on or been induced to enter into such agreement by any representation or warranty,
save expressly set out in such agreement. This document is governed by and construed in accordance with Indian
Law.
NORTECH TRINITY INDIA PRIVATE LIMITED
4th
Floor, Statesman House, Barakhambha Road, Connaught Place, New Delhi- 110001, INDIA
E-mail – info@nortechtrinity.com & nortechtrinity@outlook.com
Web – www.nortechtrinity.com