The state-owned Steel Authority of India Ltd (SAIL) is making all out efforts to be a major supplier in the growing oil and gas sector. As a supplier of spiral weld pipes from Rourkela Steel Plant (RSP) for major pipeline projects in the country, SAIL has already built up a presence in the oil transportation sector.
Recently, it executed an order for 109 kilometres of 20-inch diameter pipes in the tough API grade, valued at Rs. 24.85 crore, for the Mangalore-Hassan-Bangalore pipeline project of Petronet MHB. SAIL has also been supplying plates and hot rolled coils to other pipe manufacturers and for project requirements for some time. The pipes, plates and hot-rolled coils for the oil sector conformed to specifications of the American Petroleum Institute (API).
The oil pipeline sector has been growing in leaps and bounds and was expected to generate demand for over 7 lakh tonne of API grade steels of which the higher grades would constitute close to 7 per cent of the demand. There was substantial demand for these grades in international markets. The price range of these grades was higher than those of the base grades by $70-80 per tonne.
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SAIL has made a detailed assessment of the demand-supply pattern and the quality requirements of major customers.
Accordingly an overall production strategy for production of various API grades of plates and hot rolled coils in different sizes has been chalked out, based on the capabilities and facilities at each of the three SAIL plants at Bhilai, Bokaro and Rourkela.
SAIL has already supplied API grade material to prestigious projects such as Badhbut Pagutan, GPEC Project of Gujarat Petronet, Haldia-Barauni crude oil pipeline project of Petronet IOC, GAIL's Jamnagar-Loni LPG Pipeline project and Afcons project.
The company is at present pursuing API grade export orders of over 1.6 lakh tonne. Several indigenous pipe manufacturers have placed orders for API grade plates on SAIL for pipe export commitments.