Project Execution

Gail (India) LtdGail (India) LtdProject DepartmentProject Department

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Presentation onPresentation on““Project Execution in GAIL” (Pipelines)Project Execution in GAIL” (Pipelines)

88thth June 2009 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.

3

GAS PIPELINES 6,800 KMS(155 MMSCMD)

11 States

LPG PIPELINES

1922 KMS (3.8 MMTPA)

GAS PROCESSING7 Plants(1.2 MMTPA LPG)

PETROCHEMICALS440,000 TPA (Polyethylene)

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

Existing Pipelines & Plants

GANDHARVAGHODIA

USAR

VIJAIPUR

PATA LAKWA

NATURAL GAS PIPELINE

LPG PIPELINE

LPG PLANT

PETROCHEM PLANT

TRIPURA

KG BASIN

VSPL

CAUVERYBASIN

HVJ, DVPL

JLPL

RAJASTHAN

GANDHARVAGHODIA

USAR

VIJAIPUR

PATA LAKWA

NATURAL GAS PIPELINE

LPG PIPELINE

LPG PLANT

PETROCHEM PLANT

TRIPURA

KG BASIN

VSPL

CAUVERYBASIN

HVJ, DVPL

JLPL

RAJASTHAN

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 - AlphabetsP -PERSEVERANCE

R –RESILIENCE

O –OPTIMISTIC

J –JUDICIOUS

E –EFFICIENT

C –COURAGEOUS

T -TOLERANT

Project Phases

Pre-Project Stage

Project Execution Stage

Project Closure Stage

Conceptual Stage

Conceptual Stage1. Desktop Study

2. Project Techno Economic Viability through Pre-Feasibility, Detailed Feasibility Report

3. EMP, RRA4. 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 PERMISSIONS

•Applications to various statutory authorities are filed, 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 (Project Management Consultant)

•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(Third Party Inspection Agency)

•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

Infrastructure Facilities

•Necessary actions are carried out to assess and finalize 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 Scheduling1. Preparation of Project Work

Breakdown Structure (WBS) incorporating

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

Project Scheduling2. 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

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.

Project Scheduling

S-CURVE OF PHYSICAL PROGRESS

0

10

20

30

40

50

60

70

80

90

100

MONTH

% P

RO

GR

ESS

Schedule: Ministry (Sep'04) Schedule: Internal (Dec'03) Progress: Actual

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 Item1 Coated Line Pipe 2 GT driven Compressors- if required3 Ball Valves (Pipelines) 4 Ball Valves (Terminal) 5 Scrapper Traps, Flow Tees, Pig Signallers, QOEC6 Insulating Joints 7 Filtration cum Metering Skids8 Fittings and Flanges 9 Terminal Pipes10 Power Source (CCVT / TEG/ Solar)11 RTU and SCADA system12 Telecom System13 Electrical and Inst. Package (UPS, Battery, MV, Inst

etc.)

S no. Package Item1 Pipeline Laying & Associated Facilities2 Geotechnical Investigation, Topological &

Hydrological survey3 Composite Works for Compressor station- if

required4 Cathodic Protection (TCP & PCP)

LIST OF PACKAGES(Work Contracts)

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.

Pre-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.

Post-Ordering Activities

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.

• 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.

Right of USE (RoU)

• 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 PIPELINE 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 ACTIVITIES IN TERMINALS CONSTRUCTION

• 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)

LIST OF STANDARDS FOLLOWED

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

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.


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 OFCOMPLETED PROJECTS

Cost & Time Saving Cost & Time Saving Approved Actual Saving

ProjectCost

(Rs cr)Time (Mth)

Cost (Rs cr)

Time (Mth)

Cost (Rs cr)

Time (Mth)

DVPL 2936 33 2240 27 696 6VSPL 493 30 412 28 81 2Lanco P/L 299 18 186 10.5 113 7.5JLPL -I 1166 40 1083 39 82 1KG Ph-I 111 18 83 17 27 1VKPL 299 30 164 30 135 0KMPL 104 18 71 18 33 0TPPL 220 18 153 18 67 0DUPL 1830 40 1200 44 630 -4DPPL 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/ ForthcomingPipeline Projects

Augmentation of DVPL GREP Pipeline system

Dadri - Bawana - Nangal

Chainsa - Gurgaon - Jhajjar – Hissar

Dabhol-Bangalore

Kochi - Kanjirkkod - Bangalore / Mangalore

Jagdishpur – Haldia

New Pipeline Projects

TUTICORINKOCHI

COIMBTOREMANGLORE

HASANBANGLORE

CHENNAI

Haldia

KAKINADADABHOL

MUMBAI PUNE

DAHEJVIJAIPUR

HYDERABAD

BHUBANESHWAR

VIZAG

JAGDISHPUR

KANJIRKKOD

KOTA

MATHANIAPHOOLPUR

BHATINDA

NELLORE

TIRUCHCHIRAPALLI

KOLHAPURGADAG

GAYA

BOKARO

JAMNAGAR

HAZIRA

BAREILLY

AURAIYA

DELHI

BANGLADESH

NEPAL

DADRI

AIZAWL

IMPHALSHILLONG

DISPUR KOHIMAITANAGAR

GANGTOK

CHITRADURGA

RAICHUR

Nangal

DEWAS

PITHAMPURE

INDORE

JAGOTIi

KELARASMALANPUR

DHOLPURIBRAHIM

HVJDVPL

GREP THULENDI

DUPL

DPPL

BHUTAN

BAWANA

New Pipeline Projects Ph-ISl. No

Name of Project Size & Length

Compln. By

Project Cost(Rs Cr.)

1. Vijaipur-Dadri 48”x505km Oct’09 3800

2. Dadri- Bawana 36”x90km

20”x33km

Oct ’09 540

3. Chainsa – Jhajjar 36”x90km Oct ‘09 536

4. Compressors at Jhabua & Vijaipur

Oct’ 10 1100

New Pipeline Projects Ph-IISl. No

Name of Project Size & Length

Compln. by

Cost(Rs Cr)

1. Dahej Vijaipur –Ph II 48”x610km Oct’10 4600

2. Bawana-Chorkarsa-Nangal-Bhatinda

36”/ 30”/ 24”/ 20”/ 18”

610 km

Oct’10 1816

3. Jhajjar- Hissar 20”x110km Oct’10 281

4. Compressors at Jhabua, Vijaipur, Gwalior & Chainsa

Apr’11 1216

5. Jagdishpur- Haldia 36”x876km Projects under approval stage

6. Dabhol- Bangalore 30”x730km

7. Kochi- Kanjirkkod-Mangalore-Bangalore

24”/ 22” 840 km

• 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

Project Management- Skill Set

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.

• 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

Recent Innovations in Project Department

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..

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.

Document Control cell

Proposed Process Proposed Process WorkflowWorkflow

Scanning, QC & Electronic Image

Stitching

Secure Retrieval

through GAIL server

Documents Document Preparation

Data & Image Upload on Server and HARD

COPY as Backup

Indexing

Online Verification

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