Pipeline Opportunities

Nortech Trinity India

Private Limited Pipeline Opportunities in India

Pipeline Opportunities

Pipeline is an established mode of transportation in the hydrocarbon industry worldwide

for decades and also in India. Pipelines are used to transport Crude Oil, Refined

Petroleum Products (HSD, SKO, MS, ATF, Naphtha, Black Oil, FO, LDO), Petrochemical

Products, Chemicals, LPG, Natural Gas, any other Gas.

Opportunities

This refer to the opportunity related to New Oil & Gas pipelines, please find below short

note on the Pipeline opportunity as we are in position to get the project awarded to the

represented company by us, which is capable to finish the project

As you are aware that GAIL India has reconfigured INR 12,000 crore Jagdishpur-Haldia

pipeline, which will connect Varanasi to the gas grid, to link the Dhamra LNG terminal.

The over 2,500-km line will be constructed in three phases and will also now connect

Dhamra LNG import terminal in Odisha.

Phase 1

In the first phase, a trunk pipeline from Phulpur (Allahabad) will be laid to Dobhi (Gaya)

in Bihar with spur lines to Barauni and Patna. The 755-km Phase-I project will cost Rs

3,200 crore and will be completed by December 2018.

The Phase-I project will supply gas to major industries such as the Barauni Refinery and

the Barauni fertilizer plant, which is being revived, besides power and steel plants. It will

also help in setting up of City Gas Networks in major cities enroute.

Phase 2

In Phase-II, a 1200-km line would be laid from Dobhi to Bokaro/Ranchi in Jharkhand

and Angul and Dharma in Odisha at the cost of Rs 5,565 crore. Phase-III will involve

laying a 583-km line to Haldia at the cost of Rs 3,425 crore. This pipeline will connect

Adani Group’s Dhamra LNG import terminal in Odisha

Phase 3

Phase-III will involve laying 583-km line to Haldia at the cost of Rs 3,425 crore.

Company’s Capability & Eligibility Criteria

Almost 50% is cost is INR 6000 Cr Pipes cost and 30% is construction Cost, Pie

Sizes are 36 inches and 30 Inches.

API Certification is must for Both Pipe and construction.

Turnover of the company must be at least INR 6000 Crores for qualifying for the

project.

Pipeline Experience Required for both 30 inch (24 inch Past experience) and 36

inch (30 Inch Past experience) pipelines.

Companys networth should be positive

Additional Project

GAIL is also investing additional INR 2,000 crore in replacing old pipelines in Cauvery

and Krishna Godavari area of Andhra Pradesh and Tamil Nadu as well as in Gujarat.

“GAIL is laying 700-km of new pipeline to replace 35-40 years old pipelines,”

Business Opportunities

Gas & Crude Pipelines

Ample opportunity to grow as a vendor for New Pipe Lines both for Gas & Crude as new

policy says that India is going to form National Gas Grid and in next five years approx

30,000 KM’s new pipe lines are going to be announced. Approx Value of projects is

USD 40 billion. Already 6000 KM’s new pipeline projects are announced and this will be

a good opportunity for Pipeline EPC Contractors, LSAW Pipe Suppliers and including

pipeline valves and auxiliary equipment.

IOCL Pipelines

The company is undertaking several projects such as integrated offshore crude oil handling facilities at Paradip, de-bottlenecking of Salaya-Mathura-Pipeline, Paradip-Raipur-Ranchi product pipeline, Paradip-Haldia-Budge-Budge-Durgapur LPG pipeline, Viramgam-Kandla pipeline, construction of additional crude oil storage tanks at Vadinar, Patna-Raxual-Baitalpur pipeline and dedicated ATF pipelines connecting Kolkata, Guwahati and Delhi (T-3) airports.

IOC also transports liquefied natural gas and natural gas through pipelines with combined capacity of liquid pipelines is over 75 million tonnes per annum and gas pipeline is 10 million standard cubic metres,"

Trans-national Pipelines

To augment the domestic supply of Natural Gas and LNG imports (Liquefied Natural

Gas), the Government is actively pursuing following pipeline projects:

Iran Pakistan India Pipeline : This project plans to bring gas from the fields of

Iran to India via Pakistan. A special Joint Working Group (JWG) has been set up

to implement this project by 2015. The project is worth US$ 4.0 billion for about

2000 km pipeline.

Myanmar Bangladesh India Pipeline : Indian companies ONGC Videsh Ltd

(OVL) and GAIL India Ltd jointly hold 30 per cent stake in offshore block A-1 in

Myanmar, where commercial gas discoveries of about 5 tcf were made in

January 2004. The block has a capacity to produce 20-25 mmscmd for a period

of 20 years. In February 2004, Myanmar decided to sell its 65 per cent share of

gas in block A-1 to GAIL. To transport gas from Myanmar, a transnational 800

km pipeline costing US$ 1 billion is being proposed (Source : MoPNG).

Turkmenistan-Afghanistan-Pakistan (TAP) pipeline : Daulatabad area of

Turkmenistan is reported to have sufficient gas reserves. There are plans to

extend pipeline to transport gas from this area to India.

PIPELINE COATINGS

Coating Systems For Old Gas & Crude pipe lines which are approx. 40000 KM’s

available for coatings and every year approx. 2000 KM will be released for coatings

from IOCL, GAIL, BPCL, OIL, HPCL, EIL, RIL, ESSAR and many other players. Approx

value of projects is INR 20,000 Crores. Year 2015-16 Approx 2200 KM’s pipe line will

be tendered for 2 Ply, 3 Layer PE/PP Coatings through tenders L1 System for supply

and then 2nd stage tenders for the contractors.

COMPONENTS OF A TRANSPORTATION PIPELINE SYSTEM

Pipe, Valves, Scraper traps, Insulating flanges, Flow tees, Fittings, Flanges Other

equipment attached to the pipe, Compressor station stations (for gas lines), Pumping

stations (for liquid lines), Metering and regulating stations, Delivery stations,

Intermediate pigging stations, Sectionalizing valve stations Tap-off points.

SEAMLESS TUBES & PIPES (LSAW)

The opportunity arises to supply and manufacture Seamless Tubes & Pipes with state of the art plant in India with technology & equipments from acknowledged world leaders in Seamless Tube & Pipe technology. plant can be established with annual installed capacity of 220,000 M Tons for Carbon & Alloy Steel Pipes and is to be equipped with modern manufacturing machineries and latest testing facilities including Fusion Bonded Epoxy (FBE) and 3 layer Poly Ethylene (LPE) Coating Line. need to be commissioned a state of the art PQF Mill and have also added a new

Quench and Temper Furnace, Up setter, Hydro tester, MAC EMI & UT and PMC Threading machines. With the addition of these machines mill would be technologically at par with the best seamless mills internationally.

Industries Serviced

Petroleum, Refineries & Fertilizers Oil Drilling Boilers, Heat Exchangers & Condenser Applications Super Heater & Low Temperature Applications Mechanical Tubing & Structural Application Automobile Applications General Engineering Fluid Conveyance Applications Bearing Steel Tube Industry

With Nortech Trinity you can be assured of getting booked your plant for forthcoming

pipe projects in India for several years.

If your company is interested in projects we will be glad to furnish more information after

establishing initial NDA & agreement and then Nortech Trinity will be happy to share all

the relevant information to take the decision of Go or No Go.

Pipeline Industry in India - Brief Introduction

Pipeline is an established mode of transportation in the hydrocarbon industry worldwide

for decades. Pipelines are used to transport Crude Oil, Refined Petroleum Products

(HSD, SKO, MS, ATF, Naphtha, Black Oil, FO, LDO), Petrochemical Products,

Chemicals, LPG, Natural Gas, any other Gas.

India is the sixth largest consumer of oil in the world and the ninth largest crude oil

importer. India’s oil and gas sector contributes over 15% to the Gross Domestic Product

(GDP). The Indian oil and gas industry is expected to be worth USD 139,814.7 million by

2015. India’s economic growth is closely connected to energy demand. The need for oil

and gas is therefore projected to grow further, providing vast opportunities for investment.

To meet this demand, the Government of India has adopted various policies, such as

allowing 100 per cent foreign direct investment (FDI) in many segments of the sector,

such as natural gas, petroleum products, pipelines, and refineries. This move along with

various others has made the oil and gas sector in India a more viable place to invest.

Market Highlights

The oil industry can be divided into three major components: upstream, midstream and

downstream. The upstream segment comprises Exploration and Production (E&P)

activities. The midstream segment is involved in storage and transportation of crude oil

and natural gas. The downstream segment is engaged in refining and production of

petroleum products, and processing, storage, marketing and transportation of

commodities such as crude oil and natural gas.

In India crude oil is produced Onshore and Offshore. Onshore fields are in

Assam/Nagaland, Arunachal Pradesh, Gujarat, and Tamil Nadu/ Andhra Pradesh. Oil

India Limited (OIL) and Oil and Natural Gas Commission (ONGC) have the onshore field

for crude oil production. Offshore production occurs at Bombay High run by ONGC and

Private/Joint Venture companies. For natural gas, onshore fields are at Assam, Tripura,

Gujarat, Tamil Nadu, Andhra Pradesh and Rajasthan. Offshore production of natural gas

takes place at the Western area of Bombay High.

India has 20 refineries out of which —17 are in the public sector and three in the private

sector. Few of the SEZs in this sector are Reliance Petroleum SEZ, Mangalore SEZ in

Karnataka, Gujarat Hydrocarbons and Power SEZ and Nagarjuna Oil Corporation in

Tamil Nadu.

Major Players

Public sector corporations dominate the Indian exploration and production sector. In

terms of the percentage share in total production Oil and Natural Gas Corporation

(ONGC) accounts for the highest share.

The second major player in the sector is also a public sector undertaking Oil India Limited

(OIL). Both of these undertakings account for about more than 70% of the total market.

The remaining share of the pie is cluttered with various private players in the market.

Names of the key players in the oil and gas industry in India are Oil India Ltd., Oil and

Natural Gas Commission, Indian Oil Corporation, Hindustan Petroleum Corporation Ltd.,

Bharat Petroleum Corporation Ltd., Gas Authority of India Ltd., Reliance Industries Ltd.,

Essar Oil, Adani Gas, Petronet LNG, Cairn Energy, Shell, British Gas and BP.

Sector Prospects

India has significant potential to discover new oil and gas basins since 78% of the

country’s sedimentary area is yet to be explored. Recent large-scale oil and gas

discoveries in the Krishna Godavari and Rajasthan basins have amply demonstrated this

potential.

Exploration and production spend in the country has doubled from about USD 5.2 billion

in 2010–11 to about USD 9.5 billion in 2014–15. Overall E&P spend is expected to be in

the range of USD 140–116 billion in the next 5–6 years.

This will also create a sustained demand for oil field services like drilling rigs, offshore

support vessels, tubular goods, and seismic services and equipment for constructing

process platforms, pipelines and collecting stations, as well as other surface facilities for

transportation of oil and gas from wells to delivery points.

The country’s gas pipeline coverage has increased substantially and has significant

potential for further expansion. India currently has a trunk gas pipelines network of 9,900

km with a transmission capacity of 292 MMSCMD.

The first crude oil pipeline in India was laid from Digboi oil fields to Digboi refinery.

However, the inherent advantages associated with pipeline were soon realized by users

as well as government and this led to development of this industry. Subsequently, a

number of product and crude oil pipelines were laid in the 60’s, 70’s and 80’s. Gas

pipelines have come into the scene from late eighties

In India, OIL (Oil India Limited) laid the first fully automated 1157 km long cross-country

pipeline of SouthEast Asia during 1960-63. The first cross-country product pipeline in

India was laid by Indian Oil Corporation Limited during 1962-64 to transport products from

Guwahati refinery to Siliguri. Both the pipeline systems are still in full operation.

The Salaya-Mathura Pipeline (SMPL) was built in 1978 to transport imported as well as

indigenous crude oil to two refineries of Indian Oil Corporation Ltd (IOCL) in Gujarat and

Mathura in Uttar Pradesh. This pipeline was later extended to feed IOCL’s Panipat

Refinery in Haryana. The country’s first single point mooring system was built in Vadinar

village in Gujarat coast for SMPL in.

Assam Gas Co. started gas pipeline network in Assam to distribute gas produced by OIL

the power plants, industries and households since sixties. India’s first cross country gas

pipeline--1700 km HaziraBijaipur-Jagdishpur (HBJ) network of was executed and

commissioned by GAIL (India) Ltd in 1987 with a gas transportation capacity of 18.2

MMSCMD mainly to link the gas sourced from Bombay South Basin offshore field. Since

expanded the HBJ Network now serves the states of Gujarat, Rajasthan, Madhya

Pradesh, Uttar Pradesh, Delhi and Haryana.

The Dahej-Vijaipur pipeline (DVPL), the India’s first pipeline to carry LNG. It was

constructed by GAIL. The 42 inch 770 km long onshore pipeline has capacity of 24

MMSCMD. LPG pipeline network In the country has increased to nearly 2500 Kms.

The East-west pipeline (EWPL) is one of the largest pipeline project executed in India

This pipeline had been implemented by Reliance Gas Transportation Infrastructure Ltd

(RGTIL) to transports gas from Reliance Industries Ltd RIL’s prolific Krishna Godavari

Basin KG Block to the four States of Andhra Pradesh, Karnataka, Maharashtra, and

Gujarat. The 1,385 km long 48 inch diameter EWPL network has a capacity transport 80

MMSCMD of gas.

Cairn India’s 670 km long 24” crude oil onshore pipeline Mangala Development Pipeline

(MDP) is the world’s longest continuously heated and insulated pipeline. This crude oil

pipeline is using Skin Effect Heat Management System (SEHMS) to ensure that the crude

oil remains above the Wax Appearance Temperature (WAT). Through out the pipeline.

Presently, India’s hydrocarbon pipeline infrastructure as in the year 2012 :- 19,300 km

for crude oil 16,293 km for gas 15,903 km for products.

Total length of crude oil trunk pipeline 9,537 km Total Capacity 138 mmt Total length of

trunk pipeline for Refined product 11,218 km – Total capacity of 76.3 mmtpa FY12 LPG

pipeline network by length 2,312 km- FY12

At present the total gas trunk pipeline network in India is more than 10,000 km. Gas

Authority of India Ltd (GAIL) approximately 7,850 km trunk pipeline with capacity to carry

150 MMSCMD gas RGTIL owns and operates East-West pipeline network of 1,385 km

length and capacity of 80 MMSCMD GSPCL has trunk pipeline network of approximately

1,070 KM.

ONGC Leading National Oil & Gas Exploration Company of India ONGC owns and

operates 8000 km onshore 4500 km offshore pipelines net work in its production areas.

GAIL INDIA Major PSU with Largest Gas Pipeline Network Indian Oil Corpn Ltd (IOCL)

Major Transnational, Diversified , Integrated energy Company of India. IOCL operates a

11,163 km network of crude, gas and product pipelines, with a capacity of 1.6 mbpd. This

is around 30 per cent of the nation’s total pipeline network. Hindustan Petroleum(HPCL)

Major PSU, Leading Refining & Marketing Company Bharat petroleum(BPCL) Major PSU,

Leading Refining & Marketing Company Oil India Ltd (OIL) PSU, Oil & Gas Exploration

and Transportation Company Gujarat State Petroleum Corpn (GSPC) Vertically

Integrated Energy Company across India & overseas Reliance India Ltd (RIL) Activities

span exploration & production of oil & gas, refining, marketing and petrochemicals Owns

& operates EWPL Cairn India Largest private sector producer of oil Owns & Operates

MDPL

N O T I C E:

This document (the “Information Teaser”) is only intended to give general information regarding an “Proposal to NRI

for India Entry Strategy” or “the Transaction” and Nortech Trinity India Private Ltd. (“the company”), and does not

purport to contain all information that may be required to evaluate any possible transaction and is not intended to

form the basis of any investment decision to acquire any part (or all) of the Company. This document cannot be

construed as a recommendation, an offer or an invitation to make an offer to acquire any interest or participation

in the Company or to enter into any type of contract under any jurisdiction. Recipients of this document should

ensure that they comply with all relevant legislation and rules that may be applicable to them. This document has

been prepared by Nortech Trinity India Private Limited (“the Advisors”) together with the management of the

Company. The content of this document is not verified by the Advisors or the Company. The Advisors and the

Company accept no liability or responsibility whatsoever for the contents, accuracy or completeness of this

document (including any statements with respect to projections or prospects of the deal and related assumptions)

or for infringement by any recipients of this document of legislation of any nature whatsoever. This document is

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NORTECH TRINITY INDIA PRIVATE LIMITED 4th Floor, Statesman House, Barakhambha Road, Connaught Place, New Delhi- 110001, INDIA

E-mail – info@nortechtrinity.com & nortechtrinity@outlook.com

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