Perma-Pipe to perform Indian pipeline pre-insulation
Posted: 24 March 2008
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Perma-Pipe, a MFRI subsidiary, has received an order to carry out the factory insulating and jacketing services for a 600-km long, 24-inch diameter heavy crude oil pipeline in India, the company has announced.
The pre-insulation services will be rendered at a new Perma-Pipe facility to be located in Mundra, India at the premises of Jindal Saw Ltd. Jindal, one of India’s largest steel pipe producers, will manufacture and fabricate the pipe for the project.
The total value of Jindal’s contract is in excess of $200,000,000. The insulation and jacketing work, included in Jindal’s contract, has a total value of approximately $60,000,000, which includes value of the insulation materials to be procured by Jindal as well as other services to be provided by Perma-Pipe, the statement from the company said.
The pipeline will be owned by Cairn Energy India Ltd. in partnership with Oil and Natural Gas Corporation (ONGC), a Government of India entity. The pipeline will be used to transport heavy crude oil from their oil fields in Mangala in North West India to a terminal in Salaya, a distance of approximately 600 kilometers (375 miles).
Since the heavy crude oil is essentially solid at ambient temperature, the pipeline must be insulated and electrically heated to assure oil flow
“This project gives Perma-Pipe the opportunity to serve the oil and gas market in India, one of the fastest growing economies in the world”, said AvinGidwani, Managing Director of Perma-Pipe Middle East.
“We are very pleased to have received this order which will be the longest underground pre-insulated heat traced pipeline ever constructed,” said Fati Elgendy, President and Chief Operating Officer of Perma-Pipe. “Based on the size and complexity of the project, it puts us at the highest level of serving the global market for pre insulated piping.”
“This order is the next step in our Global Strategy to diversify in both markets and territories”,added David Unger, Chief Executive Officer and Chairman, MFRI, Inc. “In order to produce this project, we will be opening a new pipe pre-insulation factory in India.”
MFRI is a leading manufacturer of factory pre-insulated piping systems for oil and gas gathering, district heating and cooling and other specialty applications. Other MFRI products include custom-designed industrial filtration products to remove particulates from dry gas streams and thermal transfer equipment to remove heat from molding, printing and other industrial processes. |
