Gail (India) Ltd
Project Department
Welcome to GAIL
Executive Trainees
Presentation on
“Project Execution in GAIL” (Pipelines)
8th June 2009
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
1922 KMS
PATA LAKWA
(3.8 MMTPA) PATA LAKWA
VIJAIPUR
GAS PROCESSING VIJAIPUR TRIPURA
VAGHODIA TRIPURA
7 Plants VAGHODIA
(1.2 MMTPA LPG) USAR
USAR VSPL
VSPL
PETROCHEMICALS KG BASIN
KG BASIN GAS PIPELINE
NATURAL
440,000 TPA (Polyethylene) NATURAL GAS PIPELINE
LPG PIPELINE
LPG PIPELINE
LPG PLANT
UPCOMING LPG PLANT
PETROCHEM PLANT
CAUVERY
PETROCHEMICALS BASIN
CAUVERY
PETROCHEM PLANT
BCPL (JV) BASIN
280,000 TPA (Polyethylene) 3
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 DETAILS
SURVEY •Survey of the pipeline route is carried out thru
specialized agencies in which ROU, crossings
identified, Population density, Soil investigations etc are
carried out..
ROU Permissions •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.
MOEF permissions •Applications filed to MOEF and State Pollution Control
Boards for obtaining Environmental & Forest clearance.
Public hearings are conducted.
Crossing •Applications to various statutory authorities are filed,
PERMISSIONS for obtaining crossing permissions such as Railways,
National / State Highways, Water bodies etc.
PRE-PROJECT ACTIVITIES Contd…
ACTIVITY DETAILS
LAND •Necessary actions for acquisition of Permanent land
along the pipeline route is taken. These lands are
required for installing, SVs, IPs, Terminals etc.
PMC •PMC is appointed to carry out the Overall project
(Project Management management. Tenders for long lead items such as Line
Consultant) Pipes, Valves, Construction works etc are finalized on
priority. Some of the reputed consultants with which GAIL
is working are EIL, MECON, Tractebel, VECO, [Link]
etc
TPIA •TPIA is appointed to carry out the Quality Surveillance
(Third Party for Manufacturing of materials & Construction of pipeline.
Inspection Agency) Some of the reputed TPIA are Velosi, Germanischjer
Lloyd, SGS, Buerau Veritas etc
Infrastructure •Necessary actions are carried out to assess and finalize
Facilities the facilities like Vehicles, Camps, Communications
(mobile, PCs etc).
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 Work
Breakdown Structure (WBS)
incorporating
* 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. Package Item
1 Coated Line Pipe
2 GT driven Compressors- if required
3 Ball Valves (Pipelines)
4 Ball Valves (Terminal)
5 Scrapper Traps, Flow Tees, Pig Signallers, QOEC
6 Insulating Joints
7 Filtration cum Metering Skids
8 Fittings and Flanges
9 Terminal Pipes
10 Power Source (CCVT / TEG/ Solar)
11 RTU and SCADA system
12 Telecom System
13 Electrical and Inst. Package (UPS, Battery, MV, Inst etc.)
LIST OF PACKAGES
(Work Contracts)
S no. Package Item
1 Pipeline Laying & Associated Facilities
2 Geotechnical Investigation, Topological & Hydrological
survey
3 Composite Works for Compressor station- if required
4 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) 100% RADIOGRAPHIC INSPECTION OF WELDED
JOINTS USING X-RAYS AND GAMMA RAYS.
6) THE TOTAL LENGTH OF PIPELINE AND ITS
INSTALLATION ARE HYDROSTATICALLY
TESTED AT A PRESSURE OF 1.4 TIMES OF
DESIGN PRESSURE.
8) REMOTELY OPERATED SECTIONALISING
VALVES ( SV )
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 Actual Saving
Cost Time Cost Time Cost Time
Project (Rs cr) (Mth) (Rs cr) (Mth) (Rs cr) (Mth)
DVPL 2936 33 2240 27 696 6
VSPL 493 30 412 28 81 2
Lanco P/L 299 18 186 10.5 113 7.5
JLPL -I 1166 40 1083 39 82 1
KG Ph-I 111 18 83 17 27 1
VKPL 299 30 164 30 135 0
KMPL 104 18 71 18 33 0
TPPL 220 18 153 18 67 0
DUPL 1830 40 1200 44 630 -4
DPPL 1326 28 1020 36 306 -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 project-
2006
Finalist in IPMA Award for Dahej-Dabhol P/L-
2009
NPMP Award of DVPL Project
Ongoing/ Forthcoming
Pipeline Projects
New Pipeline Projects
Augmentation of
DVPL GREP Pipeline Nangal
BHATINDA
system BAWANA
DADRI
DELHI
NEPAL
Dadri - Bawana - GREP DHOLPUR
IBRAHIM
AURAIYA GANGTOK
BHUTAN
MATHANIA THULENDI
JAGDISHPUR
BAREILLY DISPUR
ITANAGAR
KOHIMA
Nangal KOTA
KELARAS
MALANPUR
PHOOLPUR GAYA SHILLONG
IMPHAL
DVPL HVJ BANGLADESH
Chainsa - Gurgaon - JAGOTIi VIJAIPUR BOKARO
AIZAWL
DAHEJ DEWAS
Jhajjar – Hissar JAMNAGAR
INDORE
HAZIRA Haldia
Dabhol-Bangalore DUPL
PITHAMPURE
MUMBAI PUNE BHUBANESHWAR
Kochi - Kanjirkkod - DABHOL DPPL VIZAG
KOLHAPUR KAKINADA
Bangalore / GADAG
HYDERABAD
RAICHUR
Mangalore CHITRADURGA
NELLORE
BANGLORE
HASAN CHENNAI
Jagdishpur – Haldia MANGLORE
COIMBTORE
KANJIRKKOD TIRUCHCHIRAPALLI
KOCHI TUTICORIN
New Pipeline Projects Ph-I
Sl. Name of Project Size & Compln. Project Cost
No
Length By (Rs Cr.)
1. Vijaipur-Dadri 48”x505km Oct’09 3800
2. Dadri- Bawana 36”x90km Oct ’09 540
20”x33km
3. Chainsa – Jhajjar 36”x90km Oct ‘09 536
4. Compressors at Jhabua & Oct’ 10 1100
Vijaipur
New Pipeline Projects Ph-II
Sl. Name of Project Size & Compln. Cost
No Length by (Rs Cr)
1. Dahej Vijaipur –Ph II 48”x610km Oct’10 4600
2. Bawana-Chorkarsa-Nangal- 36”/ 30”/ Oct’10 1816
Bhatinda 24”/ 20”/ 18”
610 km
3. Jhajjar- Hissar 20”x110km Oct’10 281
4. Compressors at Jhabua, Apr’11 1216
Vijaipur, Gwalior & Chainsa
5. Jagdishpur- Haldia 36”x876km Projects under
approval stage
6. Dabhol- Bangalore 30”x730km
7. Kochi- Kanjirkkod-Mangalore- 24”/ 22”
Bangalore 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 Scanning, QC & Indexing
Preparation Electronic Image
Stitching
Proposed Process
Workflow
Online
Verification
Secure Retrieval Data & Image Upload on
through GAIL Server and HARD COPY
server 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
