[lbo-talk] Iran India pipeline viable and safe

uvj at vsnl.com uvj at vsnl.com
Tue Jun 7 08:56:13 PDT 2005


Business Standard

Tuesday, June 7, 2005

BHP says Iran pipeline viable and safe

Press Trust Of India / Islamabad June 07, 2005

BHP Billiton, the world's largest diversified resources company, has said that there are sufficient features in the pre-feasibility study of the $4.16-billion Iran-Pakistan-India natural gas pipeline to ensure safety.

The BHP report, which was the reference point during discussions between Petroleum Minister Mani Shankar Aiyar and his Pakistani counterpart Amanullah Khan Jadoon on the project here, states that the pipeline would be buried to a depth varying between 0.9 metres and 1.5 metres and would use fiber-optic cable sensing systems with a back-up satellite link for monitoring.

Maintenance units will be located every 150 km with pipe sections ready to install if there is a disruption to the 2600-km pipeline, 760-km of which is to pass through Pakistan.

"Any disruption to the pipeline can be rectified within two to three days. The 'line pack' capacity will be about three days which can take care of disruptions as well as the wide fluctuations in Pakistan's gas demand," the report states.

As additional precaution, BHP has recommended that both India and Pakistan build gas storage facilities that could take care of a fortnight's demand.

The 11 to 12 compressor stations will not be underground but would be manned full time. If one compressor station is disabled, it can be bypassed and supplies maintained at 80 per cent of capacity.

The security of the pipeline and compressor stations will be the responsibility of the operator consortium. There is provision against Pakistan disrupting supplies to India.

The point on the pipeline from where Pakistan will offtake the gas will be only 60 km from the Indian border and there will be no valve further down the line till after it enters Indian territory.

BHP Billiton considered India's request to examine the possibility of the pipeline running close to the coast through Pakistan but rejected it as the terrain is rocky, swampy and in a high seismic belt.

Since every additional kilometre would increase the cost by $1 million, the alignment was kept as straight as possible from start to finish, except in Pakistan where it deviates northwards to avoid a highly developed agricultural belt.

The study has established that the project, through which India hopes to import up to 90 million standard cubic meters gas per day, is technically and commercially viable.



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