Gail (India) Ltd

Project Department

Welcome to GAIL Executive Trainees

Project Execution in GAIL (Pipelines)
8th June 2009

Presentation on

What is a Pipeline Project ?

A gas pipeline project involves laying of buried pipeline of particular length & diameter to connect the gas supply source to gas consumer.

The project also involves construction of receipt/ despatch terminals, SV/ IP stations and sometimes even a Compressor station.

Existing Pipelines & Plants

GAS PIPELINES 6,800 KMS (155 MMSCMD)
11 States LPG PIPELINES
RAJASTHAN RAJASTHAN PATA PATA VIJAIPUR VIJAIPUR VAGHODIA VAGHODIA USAR USAR LAKWA LAKWA

1922 KMS (3.8 MMTPA)

GAS PROCESSING 7 Plants (1.2 MMTPA LPG) PETROCHEMICALS 440,000 TPA (Polyethylene)

TRIPURA TRIPURA

VSPL VSPL

KG BASIN KG BASIN GAS PIPELINE NATURAL NATURAL GAS PIPELINE LPG PIPELINE LPG PIPELINE LPG PLANT LPG PLANT PETROCHEM PLANT PETROCHEM PLANT

UPCOMING PETROCHEMICALS BCPL (JV) 280,000 TPA (Polyethylene)

CAUVERY BASIN CAUVERY BASIN

Project Management

Project Management is the overall planning and co-ordination of a project from inception to completion aimed at meeting the requirements and ensuring completion on Time, within Cost and to required Quality standards.

PROJECT - Alphabets
P -PERSEVERANCE R RESILIENCE O OPTIMISTIC

J JUDICIOUS
E EFFICIENT

C COURAGEOUS
T -TOLERANT

Project Phases

Conceptual Stage Pre-Project Stage Project Execution Stage

Project Closure Stage

Conceptual Stage
1. Desktop Study
2. Project Techno Economic Viability through Pre-Feasibility, Detailed Feasibility Report 3. EMP, RRA 4. Financial Appraisal (by CRISIL, IFCI etc) Factors considered: Gas Sourcing, Consumer tie-up, Source of Finance (Debt-Equity), Tariff. IRR is calculated. 5. Pre-Project/ Project Approval.

PRE-PROJECT STAGE

PRE-PROJECT ACTIVITIES
ACTIVITY SURVEY DETAILS Survey of the pipeline route is carried out thru specialized agencies in which ROU, crossings identified, Population density, Soil investigations etc are carried out.. Based on the survey data, proposals for RoU acquisition are submitted to MOPNG for acquiring RoU as per PMP Act. 3(1) / 6 (1) notifications are published in the Gazette by MOPNG. Applications filed to MOEF and State Pollution Control Boards for obtaining Environmental & Forest clearance. Public hearings are conducted. Applications to various statutory authorities are filed, for obtaining crossing permissions such as Railways, National / State Highways, Water bodies etc.

ROU Permissions

MOEF permissions

Crossing PERMISSIONS

PRE-PROJECT ACTIVITIES Contd

ACTIVITY LAND DETAILS Necessary actions for acquisition of Permanent land along the pipeline route is taken. These lands are required for installing, SVs, IPs, Terminals etc. PMC is appointed to carry out the Overall project management. Tenders for long lead items such as Line Pipes, Valves, Construction works etc are finalized on priority. Some of the reputed consultants with which GAIL is working are EIL, MECON, Tractebel, VECO, J.P.Kenny etc TPIA is appointed to carry out the Quality Surveillance for Manufacturing of materials & Construction of pipeline. Some of the reputed TPIA are Velosi, Germanischjer Lloyd, SGS, Buerau Veritas etc Necessary actions are carried out to assess and finalize the facilities like Vehicles, Camps, Communications (mobile, PCs etc).

PMC (Project Management Consultant)

TPIA (Third Party Inspection Agency)

Infrastructure Facilities

PROJECT EXECUTION STAGE

Steps in Project Execution Stage

Hiring of Consultant (PMC), Third Party Inspection Agency (TPIA)
Finalization of Schedule

Detail Engineering
Preparation of Specifications & MRs

Tendering & Ordering

Manufacturing & Delivery

Construction & Commissioning

Project Scheduling & Monitoring

Project Scheduling
1. Preparation of Project Breakdown Structure incorporating Work (WBS)

* Statutory Permissions & Approvals * Detail Engineering * Tendering & Ordering * Manufacturing & Delivery * Construction & Commissioning

Project Scheduling

2.

Preparation of Activity List with Early Start, Late Start, Early Finish, Late Finish dates for each activity.

3. Preparation of Project I-J Network indicating the relationship between each activity.

4. Identification of Project Milestones

Project Scheduling

5. Preparation of Overall Project Schedule incorporating each WBS element for Physical progress Monitoring. S-Curves are prepared for monitoring. 6. Preparation of Financial Cash Flow based on envisaged dates of order placement, delivery of materials etc.

Project Scheduling

6. Progress Monitoring done for Physical & Financial by comparing the Schedule vs Actual. Reasons for deviation are noted and Corrective Action is taken up.

Primavera Schedule

Project Monitoring
Review meetings Daily meetings with project team Weekly review and liquidation of issues with PMC Fortnightly Procurement/ Works review Construction Review meeting Monthly C&MD & Director Project review Reports Daily progress reports (DPR) Pre-Project status report Pre/Post order Reports. Monthly status reports Exception report Reports to Board of Directors, Ministry etc

Critical Packages in Pipeline Project

LIST OF PACKAGES (Procurement)

S no. 1 2 Coated Line Pipe GT driven Compressors- if required Package Item

3
4 5 6

Ball Valves (Pipelines)

Ball Valves (Terminal) Scrapper Traps, Flow Tees, Pig Signallers, QOEC Insulating Joints

7
8 9 10 11 12 13

Filtration cum Metering Skids

Fittings and Flanges Terminal Pipes Power Source (CCVT / TEG/ Solar) RTU and SCADA system Telecom System Electrical and Inst. Package (UPS, Battery, MV, Inst etc.)

LIST OF PACKAGES (Work Contracts)

S no. 1 2 3 4 Package Item Pipeline Laying & Associated Facilities Geotechnical Investigation, Topological & Hydrological survey Composite Works for Compressor station- if required Cathodic Protection (TCP & PCP)

Pre-Ordering Activities
1. Pre-Tender meetings 2. Prepare BEC & get approval 3. Prepare Cost estimate

4. Prepare MR/ Tender documents

5. Floating of bids 6. Pre-bid meeting

7. Bid submission
8. Techno-Commercial Evaluation. 9. Price Bid Opening after approval 10. Processing approval for Order placement.

Post-Ordering Activities
1. Place FoI and give detailed Letter of Award 2. Signing of contract agreement 3. Kick-off meeting

4. Drawings/ document/ procedure approvals.

5. Manufacturing. 6. Inspection.

7. Dispatch &Transportation.
8. Receipt of material in stores. 9. Payment to vendors 10. Closing of order as per contract.

Pipeline Construction

Right of USE (RoU)

RoU acquisition is done as per The Petroleum & Minerals Pipelines Act, 1962 Ministry of Petroleum and Natural Gas will acquire ROU which shall be vested to GAIL (India) Ltd.. As per Act 30 mtr. wide strip of land shall be acquired after 3(1) & 6(1) notifications in Govt. of India Gazzette. In case of existing RoU and pipeline to be laid parallel to existing line, a distance of 3 - 6 m is maintained.

Right of USE (RoU)

The land and crop compensation will be paid to farmers/ land owners by Competent Authority from State Government to be notified as per Act. Compensations are given for crop, land etc. After laying of pipelines under ground, the surface will be restored back to normal condition and returned back to land owners/ farmers for agriculture.

LIST OF ACTIVITIES IN PIPELINE CONSTRUCTION

RoU Acquisition/ Panchnama RoU Grading Stringing Trenching Welding NDT (AUT/ X-Ray) Joint Coating Lowering & Backfilling Tie In Hydro-testing Dewatering Electronic Geometric Pigging, Drying & Inertization Gas-In/ Commissioning

LIST OF ACTIVITIES IN TERMINALS CONSTRUCTION

Installation of Gas Metering System, PCVs, SDVs, Filtration System, Gas Chromatograph. Works pertaining to installation of Mechanical Equipments / Telecom / SCADA system Works pertaining to Electrical and Instrumentation. Testing & commissioning.

LIST OF STANDARDS FOLLOWED

International Standards: ANSI, ASME, ASTM, API,CSA, NACE,ISO,DIN,EN etc Indian Standards For Gas Transmissions & Piping- ASME B31.8 For LPG Pipelines- ASME B 31.4 Line Pipes - API 5L For Pipe Coating- DIN 30670, CSA Z245 For Internal Pipe Coating- ISO 15741 Valves- API 6D Welding of Pipelines- API 1104 Metering- AGA Oil industry Safety Directorate (OISD-411)

SAFETY FEATURES OF PIPELINE

1) SIZING OF LINE PIPE WALL THICKNESS ACCORDING TO THE POPULATION DENSITY OF THE AREA AS PER ASME B 31.8.

2) ADDITIONAL CORROSION ALLOWANCE TO DESIGN WALL THICKNESS CONSIDERING 30 YEARS PIPELINE DESIGN LIFE. 3) PROVIDING MINIMUM GROUND COVER OF 1m FOR THE BURIED PIPELINE . 4) LINE PIPES ARE HAVING 3 LAYER POLYETHYLENE EXTERNAL COATING

SAFETY FEATURES OF PIPELINE

5) 6) 100% RADIOGRAPHIC INSPECTION OF WELDED JOINTS USING X-RAYS AND GAMMA RAYS. THE TOTAL LENGTH OF PIPELINE AND ITS INSTALLATION ARE HYDROSTATICALLY TESTED AT A PRESSURE OF 1.4 TIMES OF DESIGN PRESSURE. REMOTELY OPERATED VALVES ( SV ) SECTIONALISING

8) 9)

CASED RAIL & ROAD CROSSING AS PER INTERNATIONAL STANDARDS.

SAFETY FEATURES OF PIPELINE

10) ANTIBUOYANCY MEASURES TAKEN CONCRETE COATING.

11) H.D.D OF MAJOR RIVER CROSSINGS (2.5 MTRS. BELOW SCOUR LEVEL).
12) PIPELINE WARNING BOARDS/ KILOMETRE / AERIAL MARKERS & R.O.U. BOUNDARY PILLARS. 13) FIRE DETECTION & FLOODING SYSTEM AT ALL AT ALL STATIONS.

MONITORING OF P/L CONSTRUCTION

PROJECT CLOSURE STAGE

Closure of Contracts
To be done within 3 months of commissioning of the Project Closure Report Performance evaluation of vendors /contractors Release of all payments Capitalization of the project Close out report of project

Post Project Activities

Salient features of the project Comparison of DFR Vs Actual cost Deviation on technical issues vis a vis DFR Statement of purchase order closure Statement of work order closure Material reconciliation Handing over to O&M Positive results which need to be repeated Lessons Learnt Handling Audit/ Vigilance para if any. Vendor representations/ Arbitration etc

SUCCESS OF COMPLETED PROJECTS

Cost & Time Saving

Approved Project
Cost (Rs cr) Time (Mth)

Actual
Cost (Rs cr) Time (Mth)

Saving
Cost (Rs cr) Time (Mth)

DVPL VSPL
Lanco P/L

2936 493
299

33 30
18

2240 412
186

27 28
10.5

696 81
113

6 2
7.5

JLPL -I
KG Ph-I

1166
111

40
18

1083
83

39
17

82
27

1
1

VKPL KMPL TPPL

299 104 220

30 18 18

164 71 153

30 18 18

135 33 67

0 0 0

DUPL DPPL

1830 1326

40 28

1200 1020

44 36

630 306

-4 -8

Awards
NPMP Awards for Excellency in Project Management of:
1) LANCO Kondapalle 2002
2) Feeder line to PPN Power Project - 2003 3) Dahej-Vijaipur Pipeline 2004

IPMA Award for Dahej-Vijaipur P/L project2006 Finalist in IPMA Award for Dahej-Dabhol P/L2009

NPMP Award of DVPL Project

Ongoing/ Forthcoming Pipeline Projects

New Pipeline Projects

Augmentation of DVPL GREP Pipeline system Dadri - Bawana Nangal Chainsa - Gurgaon Jhajjar Hissar Dabhol-Bangalore Kochi - Kanjirkkod Bangalore / Mangalore Jagdishpur Haldia
Nangal
BHATINDA BAWANA
GREP

DADRI
DELHI
DHOLPUR KELARAS IBRAHIM AURAIYA

NEPAL
GANGTOK

MATHANIA KOTA
DVPL
JAGOTIi

JAGDISHPUR THULENDI BAREILLY

BHUTAN
DISPUR ITANAGAR SHILLONG

MALANPUR PHOOLPUR HVJ

KOHIMA IMPHAL

GAYA

BANGLADESH
BOKARO

VIJAIPUR
DEWAS

DAHEJ
JAMNAGAR

AIZAWL

INDORE

HAZIRA
MUMBAI

DUPL
PITHAMPURE

Haldia BHUBANESHWAR VIZAG

HYDERABAD

PUNE

DABHOL
KOLHAPUR

DPPL

KAKINADA

GADAG

RAICHUR

CHITRADURGA
HASAN

NELLORE BANGLORE CHENNAI COIMBTORE TIRUCHCHIRAPALLI

MANGLORE
KANJIRKKOD

KOCHI

TUTICORIN

New Pipeline Projects Ph-I

Sl. No

Name of Project

Size & Length 48x505km

Compln. By Oct09

Project Cost (Rs Cr.) 3800

1. Vijaipur-Dadri

2. Dadri- Bawana

36x90km 20x33km

Oct 09

540

3. Chainsa Jhajjar

36x90km

Oct 09

536

4. Compressors at Jhabua & Vijaipur

Oct 10

1100

New Pipeline Projects Ph-II

Sl. No Name of Project Size & Length Compln. by Cost (Rs Cr)

1.
2.

Dahej Vijaipur Ph II
Bawana-Chorkarsa-NangalBhatinda Jhajjar- Hissar Compressors at Jhabua, Vijaipur, Gwalior & Chainsa Jagdishpur- Haldia

48x610km
36/ 30/ 24/ 20/ 18 610 km 20x110km

Oct10
Oct10

4600
1816

3. 4. 5.

Oct10 Apr11

281 1216

36x876km

Projects under approval stage

6.
7.

Dabhol- Bangalore
Kochi- Kanjirkkod-MangaloreBangalore

30x730km
24/ 22 840 km

Project Management- Skill Set

Ownership & Responsibility Daily Planning and action on them Negotiating skills Better rapport with cross-functional team Rigorous follow up with vendors/ contractors Setting priorities Clear communication Right time right material Right person at right place Proper documentation & standardization Good data bank Team working Good time management Prompt action and no procrastination

Associated Risks in Project

Following are the major project risks : Business environment impacts: Change in government policies. Ministerial Influence. Interference in tendering process by vendor or other agencies. Planning of similar project by other organization in same market area. Fluctuation in steel prices Time and cost overrun: Incorrect / aggressive estimation of project schedule & cost. Inefficient PMC. Poor quality of manpower by PMC. Delay in supplies due to selection of poor vendor. Poor performance by main contractor (Offloading ) Mid term change in project plan. Force majure situations like flood etc RoU related problem like resistance of farmers, land owners.

Recent Innovations in Project Department

Document Control Cell Material Expediting team Dedicated MIS cell Introduction of core groups to support all projects Standardization of BECs and Tender clauses Total Activity Management- Daily morning meetings Bill Watch System SAP implementation ISO certification Vendor grievance redressal cell Lesson Learnt/ FAQ Project Manual Centralized data bank

Thanks & Best Wishes

Document Control Cell

Document Control cell

Records are tools of management, memory of an organization and source of information. The effectiveness of decision, which ultimately reflects the image of the department and efficiency of operations, is dependent on the quality of its resources and timely information which is provided by the records.

Document Control cell

The very basic operation of the system is taking paper-based document and converting them into computer-based documents. These paper documents can be scanned and their images can be viewed and manipulated on a computer screen. Again these images can be indexed, stored, forwarded and retrieved over the network.

Documents

Document Preparation

Scanning, QC & Electronic Image Stitching

Indexing

Proposed Process Workflow

Online Verification Secure Retrieval through GAIL server Data & Image Upload on Server and HARD COPY as Backup

The documents and records are categorized in six main category i,e
REPORTS PERMISSION & APPROVALS PROJECT RELATED CERTIFICATE CONTRACT RELATED DOCUMENTS DRAWINGS/DESIGN RELATED DOC OTHERS IMPORTANT DOCUMENT

For having the easy traceability the DCC is using the software ODM System . Separate folder for DCC are created in data management system and the folders is having the relevant information of all project or current project . Nearly 30 different type of folders will have the information and data/records for the project related information .

Sharing of project information through common project site (through Project web page)
Project Lesson learnt Project circulars Orders for the current month Capex statement Project expenditure Salient features for the current project FAQ Progress reports