New Delhi, Dec 03: Steel pipe maker Psl Ltd is set to bag an order from gas transmission company of Bangladesh for supply of pipes for a 55-km natural gas pipeline. "PSL has emerged as the lowest bidder in the tender in face of stiff competition from international and Indian pipe manufacturers including Korean giant Daewoo, Chinese firms, and Indian firms like Saw Pipes and Essar Construction," the company said in a press release here.

The pipes are required for high pressure gas transmission pipeline from Nalka to Bogra in Bangladesh. The 20 inch, 55-km pipeline would transport natural gas at a very high pressure (100 bar). Bangladesh had invited bids from both Helically Submerged Arc Welded (Hsaw) and longitudinally submerged arc welded (Lsaw) pipe makers which resulted in enormous cost saving. PSL quoted price of 3.18 million dollar (545 dollars per tonne) against the second lowest bidder of Lsaw pipe, saw pipes who had quoted a rate of 3.96 million dollars (675 dollars per tonne), the release said.

In contrast, state-run Gail (India) Ltd choose to exclude Hsaw pipe makers from the bid for 650-km Dahej-Vijaipur pipeline and managed to procure 14.6 mm thick pipes for 930 dollars per tonne.

PSL claimed that use of Lsaw and Hsaw technology produced the same results and the pipelines built using both the technologies have almost similar life span.

Bureau Report