KG gas evacuation on track

MUMBAI: Contracting work to evacuate gas from RIL’s find in the KG basin is under way. Dutch dredging company Royal Boskalis Westminster and the Belgium-based Dredging International (DI) have floated a 50:50 joint venture to set up a trench for pipelines to an offshore gas field KG-6 in Bay of Bengal from RIL’s terminal near Kakinada. The project, which will be carried out for Switzerland-based Allseas Group, is valued at about e125 million (about Rs 730 crore).

Reliance sources said, “This move will synergise commercial production of KG gas and link the gasfield to the 1,400-km East-West pipeline for the transportation of gas to the western coast by June 2008.” “Gas from D-6 block in the KG basin will first flow to onshore terminal near Kakinada and from there it will be pumped to 1,400-km East-West pipeline and other pipelines,” the sources added.

RIL is developing the D-6 block in the KG basin with an investment of $5.2 billion to produce 80 mmscmd (metric million standard cubic metres per day) of gas by June 2008. Work on the trench will commence in September 2007 and is scheduled to be completed by June 2008. The scope includes an 18 metre-wide trench which is 21 km long. This is for positioning nine pipelines that will pass through the Godavari river for the mainland connection of the offshore field. Boskalis’ responsibilities include dredging the trench in the sea and riverbeds and backfilling it with sand and rock. The project will require the deployment of a large cutter suction dredger and three trailing suction hoppers.

RIL is awaiting government directives on the pricing of natural gas from KG basin to enter into firm supply agreements with consumers. Reliance Gas Transmission Infrastructure (RGTIL) is executing the pipeline project for RIL. Besides the East-West pipeline, RGTIL is executing Kakinada-Haldia pipeline, Kakinada-Chennai and Chennai-Mangalore pipeline projects. RIL’s development of the gas discoveries is on schedule for production and supply of gas by 2008.

All major EPC/EPIC contracts have been awarded and all long lead items have been ordered. The pre-engineering survey for offshore installation has been completed. Currently, the project is in the fabrication phase and scheduled and the construction jetty has been completed. Detailed engineering of the onshore terminal is nearly 50% complete, said RIL in a recent release.