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Vol. 48, No. 1, January-March 2010 LARSEN & TOUBRO LIMITED

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Page 1: L&T NewsnViews Jan Mar 2010

Vol. 48, No. 1, January-March 2010 LARSEN & TOUBRO LIMITED

Page 2: L&T NewsnViews Jan Mar 2010

Cover Story:

Taking the L&T Flag Overseas 1-8

Construction JVs in Middle East & South East Asia 9-11

New Fuel Depot Project in Kuwait 12-14

Pearl-GTL Project, Qatar 15-18

EmPowering Qatar with GSVC Project 18-22

Oil Storage and Terminal Project, Sohar 24-25

Debut in Dubai with NHRP Project 26

Songo Songo Gas to Electricity Project 27-28

Highlights - Other Ongoing Projects 29-30

Coal Handling Plant at Vindhyachal 32

India’s Largest Transmission Line Research and Testing Centre 33

Vadodara-Bharuch Superway 34

Gallery 35-40

CONTENTS

Editorial Team: Jairam N. MenonLawrence Mohan Sanchita Dwivedi Marianne Nazareth Sukhi Shivaraman

Visualiser & Designer: Jayanta Behera

Photographer:Nirav Dave

D. MoradaEditor

Page 3: L&T NewsnViews Jan Mar 2010

Cover Story

News & Views, January-March 2010 3

Spreading Wings What do you do after having set a world record in India? Of course, you get ready to set a few more – this time on international turf! And that’s exactly what L&T’s Hydrocarbon Construction & Pipelines business has done. HCP’s track record in the international market stretches from the tropical isthmus of Malaysia to the endless dunes of the Middle East and Africa. The major international dimension of HCP is just four years old – compared to the four decades of domestic presence. But it has achieved an impressive strike rate in the brief period since its maiden international venture in the Gulf.

In the last issue of this magazine, we introduced you to the Hydrocarbon Construction & Pipelines (HCP) business

of L&T and the prestigious projects that it has undertaken in India. In this issue, we are taking you beyond Indian shores to distant lands where HCP’s international arm is making its presence felt, and with increasing intensity.

Forging Connections with the Gulf

Looking at the enormous business potential in the Middle East region, HCP – International Business Unit was conceptualised in July 2006, as a part of LAKSHYA 2005-10 Strategic Plan. The Headquarters for Gulf Operations were established in mid-2007 at Sharjah, the third largest of the United Arab Emirates.

HCP-Inernational’s central office

located at Sharjah reports to the Chief Executive, HCP – International in Mumbai. This central office carries out the complete spectrum of activities for lending support to projects in the Middle East. These include business development, proposal & estimation, procurement, plant & machinery, HSE, QA/QC, HR, Accounts & Admin., etc.

HCP – International also has the following establishments under its umbrella - reporting to the Vice President at Sharjah HQ:•  Local  branch  offices  in  Abu  Dhabi (UAE) and Doha (Qatar)•  L&T  Electromech  LLC  (JV  with  The Zubair Corporation, Oman) in Muscat.•  L&T  Kuwait  Construction  Co.  WLL (JV with Bader Al Mulla Group, Kuwait) in Kuwait

Taking the L&T Flag OverseasL&T’s Hydrocarbon Construction & Pipelines Business Makes a Mark Internationally

Aerial view of QP Shell’s Pearl Gas to Liquid (GTL) project under construction at Ras Laffan in Qatar. L&T is executing Mechanical Construction of Liquid Processing Unit under Toyo Hyundai Consortium for this GTL project.

Page 4: L&T NewsnViews Jan Mar 2010

4 News & Views, January-March 2010

•  L&T ATCO Saudia LLC (JV with ATCO Group,  Saudi  Arabia)  in  Dammam, Saudi Arabia.

An independent Plant & Machinery (P&M)  Department,  catering  to  the needs of HCP projects in GCC region, was created in 2006 at Sharjah. This is a one-stop-shop for all P&M solutions to HCP operations which includes procurement, operation & maintenance, recruitment and skill training as well as inter-country logistics.

HCP-International is well established in all GCC countries and is qualified by major Oil & Gas clients. It has executed various projects for key clients including Saudi Aramco, Saudi Kayan/SABIC, Petronas, KNPC, KOC, KAFCO, Qatar Petroleum, Pearl GTL Qatar,  ADNOC  Group  of  Companies, Petroleum  Development  Oman,  Oman Gas Company, Oiltanking Odfejell Terminals & Co., Emirates National Oil Company, etc.

With a team of nearly 5000 qualified people, efficient systems, inherent competencies, expanding network and a formidable array of key construction equipment, including all-terrain cranes, and entire gamut of pipeline spreads, earthmoving equipment, transport vehicles, welding & material handling equipment, compressors and hydro-testing and air drying equipment, HCP–International is fast emerging as a force to be reckoned with in the electromechanical construction space in the region.

Making a Mark with Mega Projects

Over the last few years, L&T bagged a number of prestigious orders in the Gulf, re-emphasising its status as a global company. And in this process, the company, true to its commitment to the environment and society, chose the organic route to growth.

In July, 2006, Qatar Petroleum and Royal  Dutch  Shell  plc  announced  the launch of its world-scale integrated Pearl Gas to Liquids (GTL) project in Ras Laffan Industrial City, Qatar, valued at USD  24  billion.  L&T  is  working  on  the 

mechanical installation of the liquid processing unit. The project is a Clean Fuel Project and hence L&T’s association with it assumes great significance in the current times.

In the same year, L&T got its first major project in Kuwait when the Directorate  General  of  Civil  Aviation (DGCA) of Kuwait International Airport (KIA) decided to expand the airport facilities. KAFCO, responsible for supply of aviation fuel to KIA, was instructed to vacate the land to facilitate the expansion planned.  Due  to  increased  demand, KAFCO decided to put up a new facility with higher capacity.

L&T bagged the EPCC order of this new depot project, valued at Rs.139 million, against stiff global competition. With its core strength and utilising in-house capabilities, L&T successfully executed this EPCC project which was first of its kind for L&T.

In UAE, the first success was achieved in June 2007, when HCP secured a contract valued at USD 65 million from Emirates National Oil Company for the construction of naphtha hydrotreater and reformer unit. Hydrocarbon Upstream  &  Mid/Downstream  Verticals have also established their presence in UAE through execution of Gas Injection Project for Bunduq Company Ltd., upgradation of GASCO Plant at Bu Hasa, Sulphur Recovery Unit for TAKREER & eight Process Modules

for ADGAS/ Technip.One of L&T’s prestigious projects is

being executed in Qatar where Qatar Petroleum (QP), a key supplier of gas, was entrusted with the task to ensure a reliable gas supply to the growing industrial and power sectors of Qatar. As part of the EPIC (Engineer, Procure, Install, Commission) project – Gas Supply to Station-V and Facility-C (or GSVC) – QP was required to provide a gas distribution  station  (A4)  to  receive  gas from Barzaan Project and to distribute it to the southern region through station V. In order to receive gas from the first two trains of Barzaan, two 36” NPS buried gas pipelines needed to be laid between stations A4 and V. 

L&T was entrusted with the critical tasks of laying these two 36” pipelines on turnkey basis between stations  A4  and  V,  constructing  a new  station  A4,  a  new  station  A5, carrying out some additional work at station V, and making modifications in station A21. The contract value was USD 118 million.

Talking about high value projects, HCP also carried out construction work for Petronas Malaysia’s USD 350 million MG3 lube-base oil project in Melaka.

Business potential in the Gulf

The cost of oil production by OPEC is

EPC overseas - a signature project executed by L&T beyond our shores is the lube base oil project of Petronas in Malaysia. Picture shows the VDU unit.

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News & Views, January-March 2010 5

by far lower than what is produced elsewhere and thus has an advantage over other producers such as Canada & Brazil. GCC countries are seeking to develop gas fields due to rising demand from the power and water (desalinated) sectors. Iran and Qatar have major gas deposits.

Substantial business prospects in the Hydrocarbon segment, estimated to be in excess of USD 85 Billion, exist in GCC countries (viz. United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait & Bahrain) for the next 5 years.

United Arab Emirates (UAE) UAE which consists of 7 Emirates, viz. Abu  Dhabi,  Dubai,  Sharjah,  Ajman, Umm Al-Quwainn, Ras Al-Khaimah & Fujairah has nearly 10 per cent of the total world’s proven crude oil reserves and has the world’s fifth largest natural gas reserves.

Among the GCC Countries, UAE has the second biggest proven energy reserve – second only to Saudi Arabia. Its proven reserve  for  oil  is  98  billion  barrels  and that  of  Gas  is  6.4  trillion  cu.m.  While Abu Dhabi, which is the capital of UAE, has got 90% of UAE’s oil & gas reserves, Dubai is more of an infrastructure & real estate hub. While some OPEC nations and many non-OPEC nations have seen production decline over the last

five years, UAE has increased its total production of crude oil by approximately 31%. Now UAE plans to increase crude oil production to nearly 4 million barrels per  day  (BPD)  by  2020,  which  would amount to an additional increase of approximately  40  percent  over  current production levels. UAE is vigorously pursuing to increase its oil production through various field development projects  like  IGD,  SGD,  SAS,  BAB,  etc.   UAE, which is a net importer of gas, is developing its gas fields.

The initial mandatory registration with major oil, petrochemical and fertiliser companies has been completed and HCP is now registered with leading

ADNOC  Groups  i.e.  GASCO,  ADCO, TAKREER,  ADGAS,  BOROUGE  and FERTIL.

Today, HCP is participating in high value bids, in excess of USD 100 million, and is poised to take up high value electromechanical construction contracts with the aim to develop capability of turnkey/ composite construction (civil, mechanical, E&I).

Several initiatives have been undertaken to enhance and strengthen L&T’s presence in the UAE. These include pre-qualification for large projects with major oil and gas sector clients, alignment with major EPC Companies for large construction packages, establishing agency network in GCC countries for liaisoning with clients, and providing key market information for all the prospects.

OmanL&T’s first foray into Oman – known as ‘The Gateway to the Gulf’ began more than a decade and a half ago with ‘L&T Oman’ – a joint venture with The Zubair Corporation. The humble beginning foreshadowed projects of increasing scale and sophistication. A cement plant and a host of civil projects followed, leading to the construction of the 210 MW Salalah Power Plant. L&T Oman, with specialisation in turnkey construction, is now in the big league of project contractors in the Gulf.

Oman, due to its small reserves of oil & gas, is pursuing Enhanced Oil Recovery (EOR) programme to further enhance

Upgradation of GASCO Plant at Bu Hasa, Abu Dhabi, to enhance gas handling capacity to 65 MMSCFD. L&T was involved in this project from concept to commissioning including operation of the plant by L&T personnel for four months after commissioning and guarantee trial runs.

Electromechanical works undertaken by L&T for Naphtha Hydrotreater & CCR Reformer Unit at ENOC Processing Company, Jebel Ali Free Zone, Dubai.

Page 6: L&T NewsnViews Jan Mar 2010

output from its already depleted oil fields and continues to strengthen pipeline network with various gas transmission projects.

Larsen & Toubro Electromech LLC (LTEM), as its name suggests, bridges the twin disciplines of electrical and mechanical construction for the oil and gas sector. LTEM is L&T’s JV with The Zubair Corporation of Oman. The large, spherical oil tanks that now dot many of the oilfield projects in Oman are evidence – visible and vibrant – of the rapid expansion of LTEM’s activities. Today, LTEM is a major contractor to Petroleum Development  Oman  (PDO),  which  is  a JV between Oman Government, Shell organisation and a couple of French & Japanese companies like TOTAL.

The relationship with Oman was further strengthened when L&T took the first steps to build a modular fabrication yard at Sohar, viz. L&T Modular Fabrication Yard LLC – again a JV with The Zubair Corporation. The yard, with

an  area  of  400,000  square  metres  has state-of-the-art facilities for heavy structural fabrication, testing and load-out of ultra-large modules. A 300 M long Jetty is specially built to load out such large and heavy structures. Early jobs included back to back load out repair of an oil rig that had been damaged by Cyclone Katerina.

L&T has also set up a heavy engineering manufacturing complex (Larsen & Toubro Heavy Engineering LLC), which was inaugurated in Sohar in 2009, amid much fanfare. It is equipped to manufacture critical high technology reactors, pressure vessels, columns and heat exchangers for refineries, petrochemicals, fertilizer projects, power projects and other process industries.

With all of the above, L&T has emerged as one of the top-most contracting/manufacturing companies in Oman.

Saudi ArabiaThe Kingdom of Saudi Arabia (KSA)

figures prominently in L&T’s overall plan for the Middle East. Saudi Arabia’s stable economy with its immense potential for growth makes it a desired geography for L&T.

Saudi Arabia, the most dominant player in the Middle East, continues to pursue development of new fields and enhance production. Saudi, which has considerable associated gas in its oil fields, is also accelerating its associated gas development projects.

Saudi is investing heavily in increasing production and refining capacity with projects like Jubail Export Refinery Project, Yanbu Export Refinery Project, etc. which are likely to continue till 2012-13.

L&T has undertaken several initiatives, especially, partnerships with leading Saudi business houses to establish its presence in the KSA.•  Larsen  &  Toubro  Saudi  Arabia  LLC (LTSA) established in 1999 with a local partner in 2006, was converted into

6 News & Views, January-March 2010

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a wholly-owned subsidiary of L&T conducting extensive business in the field of civil construction, infrastructure, power transmission and electrical distribution projects.•  Larsen  &  Toubro  ATCO  Saudia  LLC (L&T-ATCO) is a JV with Abdulrahman Ali Al-Turki Company (ATCO), Dammam,  and  it  was  formed  to  take advantage of the electro-mechanical construction opportunities in the areas of oil & gas, petrochemicals, power and water-related projects. L&T-ATCO has been pre-qualified with Saudi Aramco & SABIC and with most of the EPC players in Saudi Arabia.•  L&T Electrical Saudi Arabia Company Limited (LTESA) is a JV with Kanoo Group of the KSA. LTESA designs, engineers and manufactures conventional and intelligent power and motor control systems with automation in the Low Voltage (LV) and Medium Voltage (MV) categories and has its manufacturing facility in Dammam. 

L&T’s recent hydrocarbon experience in Saudi Arabia covers:•  A 700 TPD methanol and100 TPD CO plant and a 50,000 MTPY methyl amines & a 60,000 MTPY dimethyl formamide plant for Chemanol at Al Jubail.•  Detailed  engineering,  procurement, fabrication and supply for Paraformaldehyde expansion project of SFCCL (now Chemanol) at Al Jubail.•  Convection  modules  for  primary reformer in methanol plant for SIPC – Saudi project, through Chiyoda Corporation, Japan.•  Silo  steel  structure  erection  work  at Saudi Kayan (SABIC) Polycarbonate Project.•  Electro-mechanical construction work for Saudi Aramco TOTAL Refining and Petrochemical Company (JERP 5 B-Plant Utilities).

Apart from these hydrocarbon projects, L&T has also executed projects in other domains like Power (gas-insulated switchgear substations and

double-circuit transmission lines), civil construction (hospitals and schools) and high end manufacturing (reactors, product splitters, etc.).

With a successful track record in building plant and equipment for the oil & gas sector, refineries, infrastructure and power projects, L&T is in a position to offer a single window for meeting a variety of industrial requirements with single-point responsibility to its customers.

QatarL&T’s growth in Qatar has been in line with the country’s growth. L&T started its operations in Qatar in 1971 with Qatar Petroleum’s (QP) NGL Plant and Qatar Fertilizer Co (QAFCO). Subsequent projects included a football stadium in Doha  and  administrative  buildings  for the  2006  Doha  Asian  Games.  L&T  also constructed a combined cycle power plant in Ras Laffan for Siemens. On the upstream side, L&T executed a living

Night view of Methanol & Carbon Monoxide plant executed by L&T’s Hydrocarbon Mid & Downstream for Methanol Chemicals Company (CHEMANOL) at Al Jubail in Saudi Arabia.

News & Views, January-March 2010 7

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quarter and power modules with jackets on EPC basis for Qatar Petroleum in 2004. Currently, L&T  is doing the hook-up and commissioning of two topsides, one flare stack and one connecting bridge it supplied to Maersk Oil Qatar (MOQ). Other on-going projects include construction of the Liquid Processing Unit (LPU) package on the QP Shell Pearl GTL Project at Ras Laffan and laying a 36” gas pipeline for Qatar Petroleum from Station ‘S’ to Station ‘V’ in Ras Laffan, on EPC basis, besides executing the electrical utilities package at Ras Laffan’s West End extension. L&T is also executing six sub-stations for Qatar’s national utility company, Kahramaa, in Education  City.  L&T’s  other  Divisions (HED, EBG & MIPD) have also supplied critical process equipment to the LNG and GTL plants, LV panels, SCADA and valves to the various upstream and downstream plants, respectively.

Qatar, a major producer of gas, has kept a cap on further development which is more of a political nature than for any commercial considerations. Qatar will also start its second round of investment with projects like Al Shaheen Refinery, Barzan Gas development, Honam Aromatics Complex, etc.

KuwaitOil is Kuwait’s prime natural resource on which its economy depends. The country is  reckoned  to  have  reserves  of  94.8 billion barrels, about 9.6% of world’s total. After successfully overcoming the crisis of Iraqi occupation in the 90s and the subsequent war in 2003, Kuwait

has attained stability and is poised to

progress well in the future.To tap the construction and

contracting business in Kuwait, Larsen & Toubro Kuwait Construction Company WLL (a JV with Bader Al Mulla Group of Kuwait) was formed in the year 2006.

After a gap of 1-1/2 years, KOC announced investments in various projects such as LSFO Pipelines, NRP feed pipelines, etc. KNPC’s New Refinery Project & Clean Fuel Project are also likely to take off by the year end.

L&T’s hydrocarbon experience in Kuwait covers:•  EPCC of a new fuel depot for KAFCO •  Construction of a gas gathering station for KOC•  Sulphur  recovery  capacity enhancements projects for KNPC’s

Shuaiba refinery (2 streams, each from

350 TPD to 70 TPD) and for Mina Abdulla refinery (3 streams, each from 250 TPD to 400 TPD) •  Supply of ethylene oxide reactors and high pressure heat exchanger train for EQUATE Petrochemicals •  31 tubular  reactors  for KNPC’s Clean Fuel Project 2020 by L&T – HED.

HCP-International is also vigorously pursuing for securing a New LPG Filling Station in Kuwait.

HCP has also executed projects in other countries such as Malaysia (Lube base oil plant & reformer for Petronas), Tanzania (Songo Songo Gas to Electricity Project for Songas Ltd.), Kenya (Soda Ash Plant for Magadi Soda Company), etc.

Some of the plant & machinery deployed for Gulf projects.

EPC of a new Pure Soda Ash Plant at Kenya for Magadi Soda Company for the purpose of producing pure soda ash from trona dredged from Magadi Lake.

8 News & Views, January-March 2010

Page 9: L&T NewsnViews Jan Mar 2010

Pillars of Strength – Construction JVs in the Middle East & South East Asia

L&T’s  E&C  Division  has consolidated its presence in

international markets, establishing itself as a major EPC player in the Middle East and South East Asia.

L&T has set up manufacturing capabilities in selected geographies and offices in the UAE (Abu Dhabi and Sharjah)  and  Qatar  (Doha).  However, this alone would not have created the impact that L&T has made in the relatively short span of time since it started setting-up international offices in 2000. Prudent and judicious choice of business partners played a major role in L&T’s success saga in the Middle East and the South East Asia.

JV companies have been set-up with reputed local partners in Oman, Kuwait, Saudi Arabia & Malaysia to tap opportunities available in the local construction sector for Hydrocarbon projects. Branch offices have also been registered in Libya and Brazil. All overseas offices are supported by a large pool of engineering personnel based in India.

Hydrocarbon Construction and Pipelines Business Unit operates in all GCC countries (HCP-Gulf). It undertakes EPC of cross-country pipelines and terminals for the Oil and Gas industry & turnkey construction of projects in Hydrocarbon  Mid/Downstream  and Water sectors, covering civil, structural, piping, equipment, heavy lifts, electrical and instrumentation work.

In-house design engineering expertise is backed by the capabilities of L&T Gulf Pvt. Ltd., a joint enterprise of L&T and US-based Gulf Interstate Engineering.

Here are brief details of L&T’s construction JVs and their operations:

Larsen & Toubro Electromech LLC

Larsen & Toubro Electromech LLC (LTEM) is a joint venture company of Larsen & Toubro International FZE and The Zubair Corporation in the Sultanate of Oman.

The Company is one of Oman’s leading Electromechanical Construction

Companies with a proven track record in executing electromechanical projects of large magnitude, and has realigned its focus to undertake composite construction services (civil, mechanical and electrical) in the hydrocarbon and power sectors and desalination projects, with single-point responsibility.

The oil & gas sector in Oman witnessed a steady growth in the last few years in spite of severe financial crisis in a global economy. Oman has stepped up its activities in the oil & gas sector and is expected to generate substantial business for hydrocarbon projects.

LTEM is pre-qualified and registered with prestigious oil & gas companies in Oman viz. Petroleum Development Oman (PDO),  Oman  Gas  Company  (OGC), Oman Refinery Corporation (ORC), etc.

LTEM follows excellent HSE practices and quality standards in line with those followed by global majors like Shell, PDO, etc. It has a valid OPAL certification and  is  certified  for  ISO  9001-2008  for its Quality Management System. LTEM has received back-to-back HSE awards

Aerial view of the jet fuel tanks and L&T offices at New Depot Project, KAFCO-Kuwait.

News & Views, January-March 2010 9

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from PDO in 2008 and 2009.  It achieved  2.1 million man-hours without Lost Time Incidents (LTI) for the 132kV OHL Reinforcement North Contract, and 1 million man-hours and certificate of recognition for Solios Carbone Sohar Aluminum Project.

LTEM has been prequalified and has actively participated in many tenders during the last two years. Some of the past completed projects in the hydrocarbon sector include Oil Storage & Terminal Project at Sohar for Oil Tanking Odfjell Terminals & Co. LLC (OOT), Storage Tank  Project  for  Daleel  Petroleum,  and Engineering Maintenance Project with IECC and 132kV transmission line for Petroleum Development Oman (PDO).

With skilled manpower of around 2000 and a staff-strength of 200, LTEM has taken several initiatives in the last two years. Some of these include augmentation of recourses, setting up comfortable camps for its workmen at strategic locations in Oman, addition of strategic plant machinery, all of which have contributed in the timely completion of projects.

In line with Oman Government’s thrust on private participation for development of national skills, LTEM has set up a special system comprising training and development programmes for the local people. Appreciating this, the Ministry of Manpower, Sultanate of Oman has given LTEM a “Green Card” which means that LTEM has the requisite visa clearance for immediate

mobilisation of resources as and when required.

Larsen & Toubro Kuwait Construction Company WLL

Larsen & Toubro Kuwait Construction Company WLL (L&T-Kuwait) is a joint venture between L&T and the renowned Bader Al Mulla Group of Kuwait that undertakes construction and contracting business in Kuwait.

Kuwait has announced major investment in the oil and gas sector with an aim to double its daily oil production by 2020 from the current level of 2.6 million barrels per day. This JV, registered with the Ministry of Commerce, has been established keeping in mind the growing needs of professional and experienced construction contractors for projects in

oil and gas, power, and water sectors. L&T-Kuwait is looking forward to growth strategies in turnkey project construction and packages including design, detailed engineering, specialised services, etc. It will execute L&T’s projects in Kuwait, with potential to undertake construction contracts from international EPC contractors too.

The local partner, Al Mulla group, is a respected organisation in Kuwait. It has group sales of more than USD600 million and a strong workforce of 5,700 people. Its engineering division, Bader Al Mulla, is well established with an active presence in various sectors including oil and gas.

Currently, L&T-Kuwait is executing projects for major customers like Kuwait Oil Company (KOC) and Kuwait National Petroleum Company (KNPC).

Gas Gathering Station constructed by L&T for Kuwait Oil Company.

Personnel taking safety pledge at the OOT – Oman site during Safety Day celebrations in January 2010.

Office of L&T (East Asia) Sdn. Bhd. in Malaysia.

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These projects will give L&T a strong foothold in the local market and help it prepare for the challenge of upcoming prospects like KNPC’s new refinery project (NRP), clean fuel project (CFP), and other expansion projects in the oil and gas sector of Kuwait.

Larsen & Toubro ATCO Saudia LLC

Larsen & Toubro ATCO Saudia LLC (L&T-ATCO) is a strategic joint venture of L&T International FZE and Abdulrahman Ali Al-Turki Company (ATCO), Dammam, a renowned Saudi conglomerate.

L&T-ATCO, after its incorporation as an In-Kingdom (IK) construction company in 2007, is now operational and poised to exploit the enormous electromechanical construction opportunities available in the oil and gas, petrochemicals and power sectors of Saudi Arabia.

In 2009, L&T-ATCO made an entry into SABIC by executing mechanical construction jobs. In the process, L&T-ATCO has developed many business associates, now acting as sub-contractors for various IK construction projects. The combined manpower of the JV and its business associates stands at more than 400.

Larsen & Toubro (East Asia) Sdn. Bhd.

The company was incorporated in June 1996 by L&T along with three Malaysians, as a Bumiputra Company in Malaysia.

Initially called L&T-ECC Construction (M) Sdn. Bhd., it is now under the umbrella  of  L&T’s  E&C  Division  and known as Larsen & Toubro (East Asia) Sdn. Bhd. (LNTEA).

At present, it is the regional centre of L&T’s business development activities in South East Asia, covering Singapore, Indonesia, Thailand, Vietnam, Philippines and Brunei. The company’s ambition is to emerge as the foremost Malaysian Bumiputra conglomerate.

LNTEA is registered with the Construction  Industry  Development Board  (CIDB),  Malaysia.  Currently,  it is in the process of registering with the Ministry of Finance, Malaysia, and

the Pusat Khidmat Kontraktor (PKK), whose license is mandatory to carry out mechanical, sanitary and water engineering activities with government companies in Malaysia.

The initial thrust of the company was on infrastructure projects. Five bridges for Malaysian PWD and 12 transmission line projects for Malaysia’s National Electricity Company (Tenaga Nasional Berhad) were built by LNTEA. Since its inception, LNTEA has supported L&T on various projects with prestigious clients such as Petronas, Petronas Carigali, Optimal Glycol, Kvaerner Petrominco, BASF Petronas Chemicals, etc. The company was actively involved in the prestigious MG-3 lube base oil project, valued at USD 347 million for Petronas, Melaka Refinery, in consortium with L&T, Lurgi-Germany and KQKS-Malaysia. Earlier in 1999, LNTEA supported L&T in successful completion of Petronas Reformer project. LNTEA also supports other  L&T  Divisions,  and  has  supplied critical high end process equipment for Petronas and its JVs in Malaysia.

Currently, the company is supporting L&T in providing IT services to its global clients like Proctor & Gamble, Lafarge, BMW South East Asia, Infineon Technologies, etc., in Malaysia.

Silo steel structure erection work at Saudi Kayan (SABIC) Polycarbonate Project by L&T-ATCO. This is the tallest structure (height: 60 m) executed for Daelim Saudi Arabia Company Limited, in record time, amidst stringent international quality and safety standards. L&T-ATCO focuses on undertaking construction services directly in the hydrocarbon construction & pipeline sector.

Mr. M. Loganathan, Construction Manager, Larsen & Toubro ATCO Saudia LLC, receiving the safety award from Daelim Saudi Arabia Company Limited.

News & Views, January-March 2010 11

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New Fuel Depot Project: A forerunner for L&T in Kuwait

A few  years  ago,  the  Directorate General of Civil Aviation (DGCA) of Kuwait International 

Airport (KIA) decided to expand the airport facilities keeping in view the projected  requirements  till  2034.  The new facilities were intended to meet demands like annual passenger traffic of 18-20 million and annual  cargo  load of  0.6 million tonnes.

KAFCO, responsible for supply of aviation fuel to KIA, was instructed to vacate the land to facilitate the expansion plan, as part of the new facilities located over  the  existing  fuel  depot.  Due  to increased demand, KAFCO decided to put up a new facility with higher capacity, at about 3 km to the south of the existing depot in an area designated by the DGCA 

and dismantle the existing facility.In 2006, L&T bagged the EPCC order

of this new depot project, valued at Rs.560 crore against stiff international competition. The project was to be completed  over  24  months.  L&T  was given notice to proceed on 23rd May 2006.  Mott  MacDonald  was  the  Project Management Consultant. EPCC Project of this type was the first of its kind for L&T. With its core strengths, L&T executed the project with in-house capabilities. This is also L&T’s first major project in Kuwait.

ScopeThe project comprised several facilities at different geographical locations. L&T’s scope included engineering, procurement and construction of the new fuel depot

facility  spread  over  an  area  of  140,000 sq. m; the new headquarters for KAFCO; the new pumping house with filtering facilities at Mina Al Ahmadi refinery; a 12”x 28km pipeline  from the refinery to the new fuel depot; the new airside operation facility, a new 24”x 5km buried pipeline from the new fuel depot to the fuel hydrant system; electrical work like switchgears, transformer, emergency DG, cabling, lighting, etc.; instrumentation work  like  DCS,  tank  gauging  system, flow metering system, leak detection system, vibration monitoring system, etc; and demolishing the existing KAFCO depot facilities.

The new fuel depot has six 11m high tanks of 33m diameter each. Fuel from the depot is delivered to KIA either via

North east side view of fuel depot at KAFCO-Kuwait.

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a hydrant system or fuel dispensers, as determined by airport operations. The new depot houses KAFCO’s corporate headquarters in addition to the airport refuelling control centre covering loading/ unloading of refuellers, testing of dispensers, maintenance of vehicles/ equipment, etc. Facilities for the handling JP8 fuel (for jet planes) are also provided. The depot also includes facilities for pumping rejected fuel back to refinery. Appropriate fire fighting equipment has been installed along with two 10m high water storage tanks of 27.5m diameter. The scope includes a connection from the fuel depot to the existing hydrant and the new airside operation facility.

Execution This project was handled from three different locations with the client at Kuwait, L&T design office in India, and design review by consultant Mott McDonald  in  UK.  The  project  was  a lumpsum turnkey contract, which also involved co-ordination with local governmental authorities for approval and licenses of power, fire fighting system, environmental clearance, municipality clearance, etc.

L&T had assigned the detailed engineering  to  L&T  EDRC  –  Chennai and Valdel – Bengaluru. Procurement of specialised items was carried out through the project team stationed at ECC

Head Quarters in Chennai. Most of the materials and equipment were imported from approved vendors spread all over the world. The procurement of all items underwent strict approval procedures like vendor approval, technical bid evaluation, etc. Once the engineering and procurement was almost complete, the project team was shifted to Kuwait.

The construction of the new depot was quite challenging as it involved work in four different locations, pipeline passing through critical areas, restricted area of DGCA and the extreme climatic 

conditions of Kuwait. The project also called for stringent HSE, quality and technical requirements, and strict supervision from the PMC and the client at every stage of construction. Prior to the commencement of construction activities, infrastructural facilities for the execution team and the client / consultant had to be completed. Facilities were developed in three locations for smooth supervision of jobs. L&T mobilised workmen from India for mechanical, electrical and instrumentation work. The biggest task was getting required manpower by obtaining timely visa/resident permits. Each staff member and workman had to undergo medical tests in India and Kuwait before finally getting the required work permit. Frequent changes in immigration laws further compounded the problem. However, it was handled efficiently without affecting the project execution. At peak, there were around 1300 workmen and 68 staff members at the site. Accommodation, food and transport were provided as per local laws.

Kuwait is a country of extreme climate – severe sandstorms and temperatures as high as to 50°C and as low as 2°C. During peak summer months, work began at 4am and ended at 12 noon. In addition, frequent sandstorms often disrupted the schedule. Painting and concreting had

A view of new fuel depot during rain.

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Overview of underground product drain tanks area at KAFCO.

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to be done at temperatures less than 35°C, which sometimes meant putting in late nights.

L&T also faced force majeure situations during the course of the project. The ship carrying hydrant pipes was grounded near Porbandar, Gujarat due to a cyclone. The pipes got flooded with sea water and had to be discarded. New pipes were ordered, which led to a delay of more  than  6  months.  The  4200KVA emergency DG also had to be reordered due  to damage at Kuwait Port.  The DG was delivered with a delay of more than one year. Then there were execution challenges like excavation of depth of 4m of length 5km, for the hydrant pipeline, cutting and reinstalling busy taxiways, relocation of pump house and changing the route of the cross country pipeline.

AchievementsL&T achieved more than 5.5 million safe man-hours. Safety and quality aspects were not compromised despite the taxing conditions. L&T’s commitment to safety and quality was rewarded when it won the prestigious ‘Silver Award’ in GCC HSE Excellence Award Scheme for the year 2008 in Engineering & Construction sector from the American Society of Safety Engineers (ASSE), Kuwait

Chapter. This is the first time that L&T has bagged such a prestigious award in GCC countries from an international agency. There was stiff competition from various international/local companies from all GCC countries to prove its strength in its HSE management systems. The award was presented in the presence of representatives from the Ministry

of Kuwait and other top officials from KNPC, KOC, Equate Petrochemicals, Dupont,  Saudi  Arabian  Chevron,  etc. KNPC Projects team achieved 20 million Lost Workday Cases (LWC) free man hours and L&T was the single largest contributor to this effort with their 5 million man-hours. KNPC felicitated L&T with a trophy for this achievement.

With the completion of this project, L&T has widened its business in the aviation fuel industry. As most airports worldwide are in the process of expanding their facilities, this project will help L&T get an edge over competition for other international bids.

(L-R) Mr.Tammanur B. Ravi, Vice President (ASSE Kuwait Chapter), Mr. P. Majee, Planning Manager, Mr. Krishna Narayan Deo, Safety Supervisor, Mr. R. Sivakumar, Chief Executive (L&T Kuwait Construction Co. WLL), Mr. Prince P. Cherian, Engineer (HSE), Mr. Yahia Khan, Engineer (HSE) & Mr. Paul Buttler, Member-ASSE at HSE Excellence Award ceremony in Kuwait.

Mr. R. Sivakumar of L&T (centre) receiving the Safety Trophy for achieving five million safe man-hours from Mr. Abdalhakeem Ismail, Project Manager, KNPC. Mr.Khaled Al Enezi, Team Leader (Safety) is also present.

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Adding a touch of green in Qatar with Pearl-GTL

With environment issues taking centre stage, investing in technologies

and infrastructure for clean fuels is a natural thing to do for a cause driven company like L&T that is committed to its responsibilities as an enlightened global citizen.

On July 27, 2006, Qatar Petroleum and  Royal  Dutch  Shell  plc  announced the launch of its world-scale integrated Pearl Gas to Liquids (GTL) project in Ras Laffan Industrial City, Qatar. The project, funded by Shell, is being developed under a Development and Production Sharing Agreement with the government of the State of Qatar. The agreement covers both offshore and onshore project development and operations. At present, the project outlay is estimated at USD 24 billion.

Why GTL?GTL fuel is a clean synthetic fuel produced from natural gas by chemical transformation. It is non-toxic, bio-degradable, and does not contain nitrogen or sulphur. Moreover, it can be made from any hydrocarbon – gas, coal, factory sludge, even garbage – the daily supply of which could create 27 million barrels of GTL fuel each day.

There are several types of GTL fuels and their by-products – GTL Naphtha is used as a chemical feedstock for plastics manufacture; GTL Kerosene can be blended with conventional Jet Fuel (up to 50%) for use in aviation – known as GTL Jet Fuel – or used as a home heating fuel; GTL Normal paraffins are used for making cost-effective detergents; GTL Gasoil is a diesel-type fuel that can be blended into the global diesel supply

pool; GTL base oils are used to make high-quality lubricants.

Pearl GTL Pearl GTL will be the world’s largest plant converting natural gas into 140,000 barrels per day (2 x 70,000 b/d GTL trains and associated facilities) of clean-burning liquid transport fuel and other products. The project will produce 120,000 barrels of oil equivalent per day of natural gas liquids and ethane. It will produce enough fuel to fill over 160,000 cars a day and enough synthetic base oil each year to make lubricants for more than 225 million cars.

The project will also result in cleaner-burning diesel and kerosene, base oils for top-tier lubricants, a chemical feedstock called naphtha that is used to make plastics, and normal paraffin, which is

3-D model of Liquid Processing Unit, Pearl GTL Project, Qatar.

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used to produce detergents.The project has been divided into

eight packages awarded to different Contractors. Liquid Process Unit (LPU) has been awarded to Toyo Hyundai Consortium formed by Toyo Engineering Corporation of Japan and Hyundai Engineering Construction Company, Korea. L&T is carrying out the subcontract of Mechanical Installation works of LPU. The sub-contract agreement was signed on October 15, 2007 and the contractual completion date is Q1, 2010. The estimated value of the contract is US$ 36.40 million. 

US contractor Kellogg Brown Root Inc. (KBR) and Japan’s Japan Gas Corporation (JGC) have formed a JV to carry out the overall project management, engineering, procurement and construction management for GTL and utilities units. The first train is expected to be commissioned by end 2010, followed by the second train in 2011.

ScopeThe project has two identical phases. The broad scope includes erection & alignment of fabricated steel structure, equipment weighing less than 20 MT, and columns & vessel platform & internal; alignment of equipment weighing more than 20 MT; supply & casting of non shrink cement base grout; erection & welding of fabricated pipe spools;

fabrication & erection of pipe supports and steam tracing work; erection of inline instruments; and hydrotesting of the piping system.

Significant aspects The execution of C-5 LPU project was very challenging from the word ‘go’. Stringent requirement of HSSE, quality, technical requirement, welder qualification, etc. made it mandatory to keep a close watch on each step of the progress.

The project assumes greater importance as it the first mechanical

work done by L&T in the HCP business, in Qatar, a country deficient in local resources like skilled manpower, construction equipment, tools and consumables.

SafetySafety in the workplace is a prime concern. Each employee was informed and continuously reminded on how to work safely. Safety awareness started with the Safety Induction given by Qatar International Safety Centre (Institute appointed by Shell for training) which briefs the new employee on the Owner’s commitment to safety. The safety procedure for the Pearl GTL Project is based on the three golden rules of ‘Comply, Intervene and Respect’.

Everyone is empowered to stop the work if it was found to be unsafe. Based on the past experience, Shell identified eleven activities which could potentially endanger human life. These were called Life Critical Activities - personnel protection, scaffolding, excavation, electrical safety, falling object, health & welfare, road transportation, working in poor lighting, confined space, lifting and fall protection.

With mercury rising up to 50-55°C in summer, a continuous supply of cold drinking  water  was  ensured.  Different 

Safety da jawab nahi! Cricket legend, Kapil Dev with Mr. B. Srinivasan, Project Manager – L&T talking to the workmen at the Pearl GTL site, on the Incident & Injury Free (IIF) Day, about safety precautions. Kapil may not have known much about petrochemical processes but he was certainly a master at protecting himself – having successfully faced the lethal bouncers that came his way. Needless to say that for the workmen at the GTL site, he was truly the man of the match!

Mr. B. Srinivasan, Project Manager (2nd from right) and Mr. Greg Badgett, Project Manager – ADT (PMC) during awarding of the Recognition Certificate for achievement of 3 million LTI free man-hours to L&T. Also seen are Mr. Itsuya Yanagi, Project Manager & Mr. D. C. Cha, Site Manager (1st & 2nd respectively from left) of Toyo Hyundai Consortium.

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durations of rest time have been put in place for different heat indices (an index developed as a function of temperature and relative humidity). Each lift more than 10MT, necessarily needs an approved rigging plan.

There is another list – twelve Life Saving Rules (LSR) – the violation of any one of which could lead to removal of an employee from the project. Each supervisor is given training on leadership in safe work planning and execution. The training is conducted by the Institute of Leadership & Management (UK) and consists of nine different modules covering topics like HSE & Leadership, Supervision within LCA, Training for the Trainer, Incident & Injury Free Supervision Skill, Practical Leadership, Flawless Start-up Initiative, PTW, TSTI, Communicating in a multi-cultural workplace, Quality Control, and Organising & Planning.

Stringent waste management, journey management, etc. are also essential parts of project execution.

QualitySome exclusive quality requirements of this project were –

Welder Qualification: Subsequent to qualification, each welder needs to weld ten piping joints without any failure for further permission to continue.

Flange Joints integrity: Flange joints are treated on par with welded joints in quality expectations. Specific

procedure has been developed to tighten the flanges, and can be carried out by qualified fitters only.

Connection of piping to rotary equipment: Pumps are isolated to avoid electro magnetism which could be induced while welding joints on pipes connected to pumps.

Preservation of pipes & equipment: All equipment and piping surfaces are to be protected from rust formation, damage to flange face, dust intrusion, etc. till handing over for pre-commissioning.

Implementation of Flawless Start-up Initiative (FSI): Shell is implementing FSI to prevent any delay due to issues like loose bolt tightening, cleanliness, etc., at the time of start-up. Based on past experience in various projects, 12 Q-areas such as cleanliness, tightness, etc. have been identified and a

detailed list of the problems encountered along with the precautionary measures to be taken, has been prepared.

Almost all manpower was mobilised from India and a small proportion from Nepal, Srilanka, Bangladesh and Phillippines.

Innovations A 44-m high structure of heavy vacuum unit (Unit 4600) was modularised, pre-assembled on the ground, transported by means of SPMT (Self Propelled Modular platform Trailer) and erected by 600 / 400 MT cranes. The erection was carried out smoothly, which led to timely completion.

Latest tools like special rollers, pipe clamps, beam clamps, etc., were used for piping works. A variety of scaffolds facilitated safety of workmen and materials.

Spoolgen and Weld Joint Control System were implemented. Spools were bar-coded at the storage yard before issue by our clients.

Different coloured cover-alls / visibility jackets were used for the identification of safety stewards, signal men, pipe welders, and other workmen and supervisors for better quality and safety control.

Uniqueness This is the world’s largest GTL Plant with a capacity of 140,000 bpd, and the single largest project ever carried out in Qatar. It is also one of the largest camp accommodations for project camps, worldwide.

With a peak strength of around

South East view of the Liquid Processing Unit (C5) of QP Shell’s Pearl GTL Project at Ras Laffan, Qatar.

Facts and Figures•  At peak hours the site saw around 23 cranes, 16 man-lifts, two self-loading   trucks, seven forklifts, two pneumatically operated hydrotest pumps, and other equipment like trailers and trucks.•  64 air fin coolers were assembled at the site itself to facilitate erection.•  Modular  structures  were  pre-assembled  at  the  site  and  erected  by  600MT  &      400 MT cranes of HDEC.•  Approximately 70,000m3 of scaffolding of various types (suspended, tower, cantilever, mobile, etc.) was used.•  Maximum weight of column erected was 355 MT (Redistillation Column).•  Maximum weight of Reactor erected was 598 MT (SCD Main Column).•  Peak manpower strength (Team L&T) recorded till date is 1100. •  Lost time injury-free manhours have crossed the 4 million mark now. 

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50,000 workmen and a multi-lingual community from more than 40 countries, the project is one of its kind for its cultural diversity. It also marks the first time implementation of Flawless Start-up Initiative by Shell.

Managing logistics for transporting 50,000 workmen to and fro from the site and shifting materials was a big challenge. However, with proper infrastructure and implementation of journey management, this is being well managed by Shell/PMC.

With more than 50,000 workmen working at site, safety is a challenge. Various methods like training, tool box talk, total safety task instruction (a

method to discuss work and the hazards involved in the activities), etc. are being carried out. Any incident that happens is shared among all through safety alerts.

Stringent waste management, where construction wastes are classified into categories and suitably disposed off at designated locations, is being practiced.

Challenges Being the first mechanical job of HCP in Qatar, it was a highly challenging task for L&T to arrange all resources from supervisory staff, workmen, plant and machinery, tools & tackles, etc. to consumables from outside Qatar. Almost all workmen and staff were mobilised

from India and for most of them it was their first experience of overseas work assignment. A number of training sessions were conducted to make them aware of the required safety and quality levels.

Other challenges include welder mobilisation, coping with intense heat, ensuring harmony between different ethnic groups, mobilisation of competent manpower, mobilisation of construction equipment, getting required work permits, etc.

Overcoming the above challenges, L&T has logged in 6 million safe manhours out of which 4 million are LTI free.

EmPowering Qatar with GSVC Project

Qatar  or  Dawlat  Qatar,  as  it  is locally known, is an Arab emirate in the Middle East,

occupying the small Qatar Peninsula on the north-easterly coast of the larger Arabian Peninsula. It is bordered by Saudi Arabia to the south; otherwise the Persian Gulf surrounds the state.

Qatar is an oil-and-gas-rich nation, with the third largest gas reserves and the second highest GDP per capita in the world. An absolute monarchy, Qatar has been ruled by the Al-Thani family since the mid-1800s and has since transformed itself from a poor British protectorate known mainly for pearling into an independent state with significant oil and natural gas revenues.

Ras Laffan Industrial CityRas Laffan Industrial City (RLIC), situated along the north-eastern coast of Qatar, has been deemed as one of the fastest growing industrial cities in the world, in recent times. The city covers an area of 106 sq. km and is expected to expand to about 250sq.km in the future. The city houses some of the elite names in the world of energy such as ExxonMobil, Shell,  Dolphin  Energy  and  Qatar’s pride - Qatar gas (Qatar Liquefied Gas Company, Ras Laffan) and RasGas LNG

(Ras Laffan Liquefied Gas Company), Ras Laffan production facilities. The city is strategically located at the centre of the Arabian Gulf, sandwiched between the Far East and Europe on the international maritime shipping route.

GSVC ProjectQatar will be experiencing an unprecedented acceleration in its power production in the coming years. With new power generation station in 2008, a new power station is expected to come

Carrier pipe insertion – Hamad Street (60 m).

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up every two years, 2009 onwards.Existing industries at Mesaieed will be

or are being expanded, and new facilities are scheduled to come on stream.

Qatar Petroleum (QP), as a supplier of gas will be required to ensure reliable gas supply to the growing industrial and power sectors. To satisfy the anticipated gas demand, AKG I and AKG II (AI-Khaleej Gas) sales gas (natural gas processed by a method of preparation having a high carbon dioxide, ethane and propane content to meet required specifications) has been dedicated to cover the demand of industries and power generation facilities at Ras Laffan and the southern region. Volumes up to 1000 Metric Million Standard Cubic Feet  per  Day  (MMSCFD),  from  AKG project, will be transported to Mesaieed via the 36” Ras Laffan Mesaieed Gas Pipeline (RMSGP – designed for 860 MMSCFD).

Additionally, QP has initiated the Barzan Gas Development Project, which will  secure  1500MMSCFD  of  sales  gas to meet the demand of industries and power sector in the southern region. Supply of lean gas from Barzan project is expected to commence by early 2012.

The Barzan project will initially have two trains that will be expanded to a total of six trains later.

Furthermore, QP is entitled to 500MMSCFD  of  free  gas  nomination from  Dolphin  Project  (DEL  -  the  first offshore gas pipeline project between the GCC countries) in case of low gas demand. Also, a new 36” nominal pipe size (NPS) back-up gas pipeline will be constructed to connect Qatar Gas Lean LNG trains to Station-V to secure 1000MMSCFD  of  back-up  gas  (lean sweet gas - natural gas composed mainly of methane) from Qatar Gas Ras Laffan site, in case of an emergency shutdown of one of QP major gas sources. The 36” NPS back-up pipeline is expected to be on service by the third quarter of 2009.

The existing 36” NPS gas pipeline from Ras-Laffan to Mesaieed, designed for  nominal  1000MMSCFD,  currently transports part of AI-Khaleej Gas phase-1 (AKG-I) to Mesaieed. This pipeline will be fully utilised when Al-

Khaleej Gas phase-2 (AKG-II) project comes on stream. The second 36” NPS pipeline (phase-2) will be ready by the first quarter of 2010 to transport gas from Barzan and other upstream projects in future.

Station Process Piping WorkAs part of the EPIC (Engineer, Procure, Install, Commission) of Gas Supply To Station V and Facility C (GSVC), it is required to provide a gas distribution station (A4) to receive gas from Barzan Project and to distribute it to the southern region through station V. In order to receive gas from the first two trains of Barzan, two 36” NPS buried gas pipelines need to be laid between stations A4 and V.

Facility C in Ras Laffan requires a supply  of  600MMSCFD  of  sweet  gas (natural gas with very little quantity of hydrogen sulfide). Gas for facility C is to be supplied from Barzan Project through station A4. Accordingly, it is necessary to provide a 36” NPS pipeline connecting station  A4  and  facility  C  through  a distribution station (A5) located in Ras Laffan, adjacent to facility C.

It is of strategic importance to have the pipelines support the downstream industries and also ensure smooth running of the upstream industries. Hence GSVC and associated EPIC project SGTP (strategic gas transmission project)

play a vital role in Qatar’s development.

ScopeL&T’s scope includes two 36” pipelines between stations A4 and V, a new station A4, a new station A5, additional work at station V, and modifications in station A21. The contract value was pegged at USD 118 million.

ObjectivesThe project aimed at maintaining uninterrupted gas supply to power stations and critical consumers in two phases - Phase1: Reverse gas flow by supplying Gas from station V to station A5, within Ras Laffan Industrial City -  660MMSCFD.  Phase  2:  Transport 1500MMSCFD  sweet  lean  gas  at  high pressure (HP) from Barzan to station V; Transport  1000MMSCFD  sweet  lean  at medium pressure (MP) gas from Barzan to facility C.

Critical AspectsThe corridor of the GSVC pipeline falls in the ‘sabhka area’, which is home to the rare phenomenon of a very high water table with rocky earth stratum. Excavation in this stratum was a problem. An enormous quantity of water had to be removed until the pipeline was backfilled for the entire stretch. L&T proposed a scheme to lay the pipeline just above the water level, and make the BERM (Earth

Station Process Piping.

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protection over underground pipelines, also known as windrow) as per the QP drawings. But to compound the problem, there was an RLIC technical guideline requirement as per which, the Finished Ground Level (FGL) had to be maintained at around 1.8m from the NGL. It became a herculean task to convince QP and RLIC for laying the pipeline as proposed per L&T’s scheme and maintain the FGL at 300 mm from the NGL. They were persuaded by increasing the height of the BERM from 1m to 1.5m, taking into consideration the stability calculations.

The right of way (ROW) preparation was in itself a challenge. The area had to be stacked with boulders for better soil bearing pressure, for the movement of earthmoving and other heavy equipment.

At RLIC the distance between two pipelines had to be maintained at 5m. Hence the deployment of higher capacity excavators and the customary way of stacking the excavated earth was not possible.

The pipeline route runs through the power corridor, which in turn has its interfaces with various pipeline operators such as Dolphin Energy Limited (DEL), Qatar GAS, RAS GAS and SHELL, beside various utility pipelines and power cables, etc. Getting necessary approvals, for expediting work in this area, called for tireless efforts from the GSVC team.

Even during the auspicious holy month of Ramadan, when organisations and people work for limited hours, the workmen put in long hours. As a result, the Phase-1 milestone was achieved on time.

InnovationsSAW - Submerged Arc WeldingThe thickness of walls of the pipes required for station piping job ranged from  25.4mm  to  38mm.  L&T  was  left with few days after the receipt of pipes and their fittings. To save time SAW was introduced. The SAW machines, from our piping subcontractor (DOPET), were utilised. This helped in saving nearly two months with the quality objective of within 1% repair rate.

Phased Array technology over RTDue to time constraints and safety issues involved with Radioactive Test (RT), L&T opted for phased array technology in lieu of RT, which has a lot of advantages over conventional Ultrasonic Test (UT). This resulted in increased costs but in the long run reduced the time required on the job. The main advantages were its ability to use multiple elements to steer, focus and scan beams with a single transducer assembly. Beam steering, commonly referred to as sectorial scanning, is used for mapping components at appropriate angles. This greatly simplified the inspection of components with complex geometry. Sectorial scanning is also typically used for weld inspection. The ability to test welds with multiple angles from a single probe greatly increases the probability of detection of anomalies. Electronic focusing permits optimising the beam shape and size at the expected defect location, which in turn optimises the probability of detection. The ability to focus at multiple depths also improves the ability for sizing critical defects for volumetric inspections. Focusing can significantly improve signal-to-noise ratio in challenging applications, and electronic scanning across many groups of elements allows for C-Scan (a Non

Destructive Test  for finding the defects in materials) images to be produced very rapidly.

Micro-tunnellingThe unavailability of the required capacity - 1200mm inside diameter micro-tunnelling equipment in the beginning of the project, could have delayed the project. Usually using a size considerably larger than the carrier pipe is considered to be technically acceptable i.e. s carrier pipe of 900mm dia is inserted into a casing pipe of 1200mm (inside) dia. The vendor, in this case, had a lesser capacity - inside dia of only 1000mm for inserting the carrier pipe of outside dia 916mm.

Thus, the GSVC project team had no other option but to use the the available capacity. Hence a technically acceptable proposal was put forward to the client, which was accepted after changing the concrete strength of the casing pipe from M30 to M50 concrete.

Nitrogen PumpingThe pipeline, after the vacuum drying, needs to be filled with nitrogen. Usually Nitrogen filling is done through a vaporiser where the time consumed depends on the flow of gas, which in turn depends on the pressure from the gas tank and the rate at which the

Pipeline section ready for lowering.

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vaporiser converts liquid nitrogen into vapour. In order to fill in the 15km stretch within 36 hours, L&T proposed to engage two vaporisers simultaneously. Due to technical reasons this permission was not granted. In order to avoid overshooting the scheduled date of ‘gas in’, a nitrogen pump which is normally used for larger stretches of the pipeline, was mobilised. This nitrogen pump which has a vaporiser with in-built blower helped to pump in the gas in the shortest possible time span in spite of the chilly weather and the torrential rainfall, which scarcely happens in Qatar.

Challenges

Station A4 Bypass

As the scheduled date for ‘gas in’ was fast approaching, it was understood that  Station  A4  had  to  be  bypassed and the pipelines running parallel to it directly connected, to save time. The real challenge was not in the engineering and construction of the bypass line, but in designing the communication and safety system for the pipeline system as a whole.

Rectification for Micro-tunnellingThe soil in this region was loose hence during pipe-laying there were alignment problems. This had adverse effects on the time and cost of the project. Hence, 82cu.m. of concrete protection was done to make the pipe stable and align it perfectly through the micro-tunnel.

Deep ExcavationAs the majority of the length of the L1 pipeline  (Pipeline  from  Station  A4  to Station V (Phase-1)), spanning 9km, came under high water table, L&T had to go for deep trenching (for up to 6.6m). As and when loose sandy soil (earth collapse) was encountered, the earth

Mission Made Possible - Bypass in Station A4.

Safety pledge by all workmen and staff at GSVC project site in Qatar during Safety Month Inauguration Ceremony, held in January 2010.

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moving equipment had to be repositioned. This was so challenging that an expert operator had to be deployed on the job. This depth was as per RLIC guidelines that were above QP specifications.

The scorching Qatar heatIn the peak summer season, during the months of July and August, the temperature rises up to 50°C to 52°C. As per government regulations, it is not permitted to work during the hottest hours from 1100hrs to 1500 hrs. The workers still gave their maximum and put in 12 - 14 hours a day to achieve the phase 1 milestone (gas in).

Switchgear pre-commissioningIt is customary to have synchronisation achieved through LV switchboards between KHARAMMA (Qatar General Electricity and Water Corporation) powers to one DG set. In station A5, contrary to the normal practice, synchronisation was necessitated  between  two  DG  sets  and also a KHARAMMA power. As a result, there  were  14  logics  required.  It  was a real challenge for GSVC project team to source the right type instruments, backed-up by the software configured to suit the logic.

Flow metering skidFlow metering skid is a critical equipment and major deliverable to achieve the ‘gas in’. Despite  several  follow ups by direct expediters, there was serious delay caused by sub vendors on component delivery. This delay was monitored and a contingency plan was developed. L&T opted for road transport in place of sea transport. There were eight truck loads that were transported across several nations finally arriving via the Suez Canal. This entire detour took 14 days as against 45 days with sea transportation. The client appreciated this decision that saved 30 valuable days.

AchievementsL&T achieved 3 million man-hours without Lost Time Incidents and was awarded a ‘Certificate of Achievement’ for the same. Mr. P.L.N. Murthy, Project Manager, received this certificate on behalf of L&T.

The Safety month inauguration ceremony and celebration was held in

January 2010. Senior officials from QP & RLIC, viz. Mr. Salam (representing the Director of RLIC), Mr. Jacky Wessels (HSE Head for RLIC), Shk. Salaman Al Mohanadi - Environment Chief & Fire Team from RLIC were present on this occasion.

All dignitaries appreciated L&T for the performance on EHS front and wished for continued success. A letter of appreciation was received from Sheikh Khalid Bin Khalifa Al Thani, who is the Supreme Authority of RLIC - the Regulatory and Governing Authority of Qatar Petroleum for the area of Ras Laffan.

Senior officials from Qatar Petroleum & Ras Lffan Industrial City addressing the workmen & staff at GSVC project site in Qatar during Safety Month Inauguration Ceremony.

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Salam Alaykum,

It is a great pleasure to be here to say a few words, greeting the gathering for the achievement.

I am here representing the Director  for Ras Laffan, HSE Department of Ras Laffan on this great day.

L&T has done great job in achieving this milestone of 3 million man-hours without any LTI and disabling injury. It gives a secured and safe feeling to be part of such a team to meet the targets and objectives with SAFETY in mind and work.

Safety is as simple as ABC – Always Be Careful. The number 1 intention of L&T is accident prevention. I have seen them NOT compromising on safety. That is zero tolerance in safety. In Ras Laffan, Safety is the way of life and it reflects in our daily walks as well.

Great works begin with humble steps and most achievers in the world do it with dedication, sincerity and hard work. L&T is a renowned company in the world market for construction business and they have proved it once again.

I take this opportunity to thank them for all the dedication. This is only one feather in the cap and I wish them to achieve many more laurels in the days to come in the State of Qatar.

On behalf of DL and HSE of RLC, I wish you all success for the rest of the project.

L&T, we need you…..so please continue to work safe.

May God be praised

Sheikh Khalid Bin Khalifa Al ThaniDirectorRas Laffan Industrial City

When you perched on a narrow shaft 50 metres above ground, when you are handling oxy-acetylene torches in frightening proximity to a large body of flammable material, and when you are responsible for revamp operations at a live refinery… ‘Safety first’ is more than a trite catchphrase, it is the maxim you and everyone around you lives by. At L&T’s project sites, safety is what you start your day with. Work begins with a safety pledge that every project supervisor accords a lot of importance to. It is not a hastily mumbled set of lines that you need to run through before you get down to serious work. Rather it is clear, loud public affirmation that you will respect all the safety rules, and that you will not attempt anything that in any way can compromise safety standards. It is fairly well-known that E&C companies of the West adopt stiff safety procedures. L&T has taken a leaf right out of the most stringent safety manual of the West and fine tuned it to meet our conditions. Once you set high standards and decide to implement them come what may, the result is clear: zero accident. At the GSVC project site, L&T’s ‘Zero Accident’ record won praise from the customer at various levels. Reproduced below is a congratulatory letter from the Director of RLIC, Qatar.

“Kudos from the Customer

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Success on a Mega Project in Sohar US$ 200 million Storage & Terminal Project

L&T’s joint venture in Oman, Larsen & Toubro

Electromech LLC (LTEM) in consortium with Indian Oil Tanking Ltd (a JV between Indian Oil Corporation Limited & Oiltanking GmbH) bagged a US$200 million project, in April 2007, in a stiff international bidding process. This is the highest value project executed by HCP-International in the Gulf.

The project involved design, engineering, procurement, construction and commissioning of storage tank and terminal facilities, on a lumpsum turnkey basis.  As on December 2009, LTEM has successfully commissioned the following phases of the project – I (ABCD), II, IIB, IIC and III.

The client, Oiltanking Odfjell Terminals & Co LLC (OOT), is a German-Omani-Norwegian JV between Oiltanking GmbH and Odfjell ASA. Oiltanking GmbH is a Marquard & Bahl (M&B) Group Company headquartered in Hamburg, Germany, and is today the world’s second largest terminalling service provider for oils, chemicals and gases. Odfjell ASA is a leading global company for shipping and storage of chemicals and other specialty liquids.

Contract CommencementThe first phase began on April 25, 2007, with a completion time period of 22 months. The terminal facilities were put to commercial operation on August 9, 2008, and have been operating satisfactorily since then.

The broad scope of work included 39 petroleum storage tanks of capacity 887000m3,  three  jetty  pipelines  of  24’’ diameter with six marine loading arms (MLA), five recipient pipelines of 20’’ diameter hot-tapped into refinery jetty pipelines, product piping, utility piping, pumps (9X1000m3/ hour CP and 1X300m3/hour  PD),  compressors,  other plant machinery and equipment, civil

structures like roads and buildings, fire protection system, E&I work including fire alarm system, gas detection system, oily water separation system and infrastructure work.

This project was quite challenging from the EHS point of view, as the tanks were  more  than  20m  high.  Despite  the odds,  the  team  achieved  4,307,944  safe man-hours.

Salient FeaturesHot Tapping: The main purpose of hot tapping is to tap a new pipeline from an existing pipeline without affecting the flow. A total of five hot tappings had been taken from pipelines of Sohar Refinery Company (SRC), involving five different products. The new pipelines were installed to facilitate OOT to receive products from SRC and store them in tanks.

Marine Loading Arm (MLA): Loading, transportation and erection of two MLAs (Marine Loading Arm) by crane mounted barge, involving a total travelled distance of 700m, was carried out in a single day. The advantages of using MLAs instead of hose loading facilities are ease of handling, higher availability/flexibility, minimisation of man power, operational cost and maintenance, and maximum operational

safety. The B0030 can be manually or hydraulically operated.

It was very difficult to assemble and erect certain MLAs as there was no road or approach space around the concerned berths. To overcome this, a private ringer crane mounted barge had to be engaged. The MLAs were first shifted to the barge and then to the berths, with the help of the crane mounted on the barge.

The amount of work involved can be gauged from the following facts and figures: 66729 cu.m of earth was excavated,  200947  cu.m  of  granular filling was done in the tanks, the total dyke length was 1679m, the RCC fire wall was 333m long, total length of roads made equaled 3000m, total drain length was 3756m, three sub-station and utility buildings were erected, 5176MT of tankage was fabricated and erected, and 118820sq.m area was painted, 289606MT of piping was fabricated, 634383MT was erected and 99100sq.m of piping was painted.

LTEM has received a letter of appreciation from the client for the successful completion of the project in a professional manner, within the set time schedule, maintaining international quality standards, and the requisite health, safety, security and environmental standards at the site.

Piping work for Sohar project.Oil storage tanks & terminal facilities at Sohar Industrial Port in Oman.

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In October 2009, Oiltanking Odfjell Terminals & Co. LLC (OOT) signed another EPCC contract (Engineering, Procurement, Construction and Commissioning) with the consortium of Indian Oiltanking Engineering and Construction Services LLC (IOECS) and Larsen & Toubro Electromech LLC (LTEM) for the extension of their first independent bulk liquid storage terminal in the Sultanate of Oman in March 2009.

This is in continuation of a successful cooperation which started in April 2007 with the award of the EPCC contracts for building phases 1 to 3. These phases included amongst the total 39 tanks and LPG spheres in eight tank pits also the building of four pump houses, three substations and the development of three jetty topsides and the complete infrastructure like  roads,  drains,  lighting,  etc.  Last  but  not  the  least,  a  total  of  8  km underground pipelines connects the terminal with the local chemical factory Aromatics Oman LLC (AOL). The project was engineered by L&T from India. In close cooperation with the owner, the consortium of IOECS and LTEM completed the first phase well ahead of schedule. This is one of the fast-track projects executed by LTEM and IOECS and it was a true demonstration of their team spirit.

Since the terminal started operation (first tanks and pumps commenced service in September 2008 – 3 months ahead of schedule), all systems are operating reliably and satisfactorily. OOT is satisfied with the safety and quality standards of the work done by LTEM

Four years ago, Sohar was relatively unknown in the bulk liquids arena but this has changed now. OOT embarked on another expansion project shortly after the inauguration of this terminal in March 2009. The idea is to develop Sohar into an international hub of bulk liquid products. I look forward to L&T’s significant involvement in the development of this region.

Subsequent EPCC contract with IOECS and LTEM comprises an additional 450,000m3  storage  capacity,  pump  house,  development  of  a  further 110,000DWT  jetty  top side and pipeline systems. The commissioning of the additional storage capacity is scheduled for mid-2011, bringing the total terminal capacity to 1,365,000 m3 – thus making it one of the fastest growing bulk liquid storage terminals within the Oiltanking Group of Companies.

I appreciate the professional manner in which L&T / LTEM have executed this project. I look forward to continued association between OOT and L&T / LTEM - IOECS.

My good wishes to Teams L&T/ Larsen & Toubro Electromech/IOECS

Mr. Joerg NeetzkeTechnical ManagerOiltanking Odfjell Terminals & Co. LLCSultanate of Oman

““

Customer Delight

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Debut in Dubai with NHRP Project

ENOC Processing Company LLC (EPCL) set up its first condensate refinery  in  Dubai,  UAE,  at 

Jebel Ali Free Zone, with a capacity of 78000 barrels per day (BPD). Then they decided to expand the capacity to 120000 BPD.  And  thus,  was  born  the  Naphtha Hydrotreater & Reformer Project (NHRP), to be completed by October 2009.

This USD 64 million project envisaged installing new process units including LPG / naphtha hydrotreater / splitter, CCR Reformer and LPG fractionator.

L&T won the contract for mechanical work in June 2007. The scope included structural erection, equipment erection, piping prefabrication/ erection, and painting and insulation work.

The basic engineering was carried by Foster Wheeler Ltd., UK who also won the Engineering, Procurement & Construction Management (EPCM) contract.

ExecutionThe execution of NHRP was challenging in view of its fast track nature, and in

meeting the stringent HSE and quality requirements.

The immediate challenge on hand after winning the contract was to set up temporary facilities and mobilise resources. It was tough identifying the right resource persons as the client would review all CVs and even hold discussions for  positions  of  Department  Heads  and above.

A sophisticated fabrication facility was set-up at the site, containing a covered shed area of 3000 sq.m, two EOT cranes of capacity 10T, a CNC machine and other tools necessary to obtain high quality output in the least possible time.

Piperacks were decked with

scaffolding at each level to facilitate erection and subsequent activities in a safe and efficient manner.

Critical AspectsThe temporary facilities set-up in the site required approvals from the Environment Health & Safety (EHS) wing of Ports, Customs & Free Zone Corporation (PCFC). This also included approval for blasting, painting and radiography work at the temporary facilities.

A  structure  (CCR),  58m  high,  45m long, and 6m wide with about 40 different equipment located at 10 different levels, had to be meticulously planned and executed.

AchievementL&T  achieved  0.45%  repair  rate  against the target of 1% repair rate set by the client. This resulted not only in meeting but also bettering the stringent work quality requirements, much to the delight of the customer.

L&T also achieved 5.6 million manhours without Lost Time Accidents.

Night view of Naphtha Hydrotreater & Reformer Project at ENOC, Dubai.

26 News & Views, January-March 2010

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A Song of Success at Tanzania

Songo Songo Gas to Electricity Project

Natural gas was discovered at Songo Songo Island 25km off the south coast of Tanzania

in  the  Indian  Ocean  in  1974.  The  first economic use of this valuable natural resource was to produce electricity for the national power grid in Tanzania.

The Songo Songo Gas-to-Electricity Project helped process the natural gas at Songo Songo Island. The natural gas so obtained was transported via a pipeline from the island to Dar-es-Salaam, to fuel a gas turbine power plant.

Natural gas is nature’s perfect fuel — it is clean, efficient, safe and economical. The Songo Songo gas reservoir is estimated to contain one trillion cubic feet of recoverable natural gas.

The availability of natural gas in Tanzania helped allow existing and new industries to use it as a fuel or petrochemical feedstock and thus reduce costs and pollution. Natural gas has also helped reduce imports of petroleum products and improved the economy of Tanzania and the region. The Songo Songo Gas to Electricity Project was the first phase in the development of a natural gas infrastructure in East Africa.

StakeholdersSongas Limited is a Tanzanian Company created to develop the Songo Songo Gas to Electricity Project and to own and operate all of the project facilities. The  lead  investor  is  CDC  Globeleq,  a subsidiary  of  CDC  Group  plc  of  the UK. The project was developed in partnership with the Ministry of Energy and Minerals of the Government of Tanzania. The Tanzania Electric Supply Company Limited (TANESCO), the state owned electric utility, and Tanzania Petroleum  Development  Corporation (TPDC),  the  state  owned  oil  and  gas exploration company, were partners and shareholders in Songas. The World Bank and the European Investment Bank (FIB) were lenders to the project through the Government of Tanzania.

Gas Field DevelopmentDevelopment  of  Songo  Songo  gas  field by the Government of Tanzania, from 1974  to  the  mid  1980s,  resulted  in  five gas wells, two on the island and three in shallow waters just off the island. These wells had never been extensively tested to establish the size of the gas reservoir

and they had not been maintained for several years. In 1996/97 the gas wells were completely rehabilitated and flow tested to confirm that the Songo Songo gas field would reliably supply all the gas needed over the 20-year life of the project.

Gas PlantA 70 million cubic feet per day gas processing plant was built. This led to improvement in the island infrastructure including potable water, electricity, an airstrip, wharves, and work opportunities for the islanders.

Marine PipelineUnderwater and underground pipelines transported natural gas from Songo Songo to Dar-es-Salaam, to provide fuel 

Aerial view of Songo Songo Gas-to-Electricity Project at Songo Songo island, Tanzania.

Trestle with piles.

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for power generation plants and other industrial uses. The marine pipeline covered 25km from Songo Songo to Somanga on the mainland.

Land pipelineThe underground land pipeline began at Somanga and extended north to the Ubungo  Power  Plant  in  Dar-es-Salaam and the Twiga Hill Cement Factory. The route selected minimised the impact on the physical and social environment of the coastal area that it passes through.

The land pipeline is 207km long with a 16-inch diameter (to the Ubungo Power Plant), can take up to 1,440 pounds per square inch of maximum pressure, and is buried approximately one metre below the ground.

Ubungo Power PlantThe Ubungo Power Plant, consisting of four gas turbine generators with a total capacity of 112 megawatts, was operated by TANESCO using imported liquid fuel. There were  two generators of 18.7 megawatt and two of 37.5 megawatt.

When natural gas became available, the turbines were converted to use natural gas and Songas took over the ownership and the operations of the power plant.

Benefits to TanzaniaThe Songo Songo Gas to Electricity Project has benefited all of Tanzania.

It used a domestic resource and reduced the country’s heavy dependence on electricity generated from hydro

power, petroleum imports, and foreign currency. The project provided an alternate, low-cost and reliable power source, along with natural gas for industry or as chemical feed-stock, and resulting economic benefits. This success is bound to encourage further exploration for oil and gas in the south coastal area of Tanzania and put her in a leadership position in natural gas and electricity trading in East Africa.

The education and training given to Tanzanians during the course of the project will also stand them in good stead, especially the communities along the pipeline route.

There are several other existing factories in the Dar-es-Salaam area that benefit from the use of this natural gas. With the availability of cheap and clean natural  gas  in  Dar-es-Salaam,  other industries are also developing.

Additional markets for natural gas and electricity in Kenya are being considered, which could be partially accessed by extending the pipeline to supply natural gas to users in Mombassa.

TREMOR OF TERROR

The evening of October 4, 2003, brought terror in its wake for the workmen at the project site in Dar-es-Salaam, Tanzania.Over a dozen armed bandits swarmed the camp with the evil intent to attack and loot. Armed with revolvers, knives, hammers, sticks, baseball bats, they entered the camp from both front and rear gates. They attacked everyone they could lay their hands on and advanced towards the potential cash rich locations inside the camp.After a day of hard work workers came back only to get greviously injured and see their hard earned money looted. After 25 minutes of mayhem, the attackers left as abruptly as they had appeared. Silence reigned for a few minutes. As realisation dawned, workers started helping one another. The injured were rushed to hospitals; some bravehearts helped others with no regard to their own injuries. Blood donations poured in. Rescue operations were put in place. The whole camp was fully charged with emotions, fear, bravery and determination. Unity between the expatriate Indians and the local Tanzanian workforce excelled the cohesive spirit of togetherness and belongingness. Involvement of all staff members and workmen, with intensive interaction following the attack, reinstated the confidence. Soon, the light of bravery and commitment to the work outshone the trauma.

207 km, 16” dia pipeline project executed by L&T for Songas Limited, Tanzania.

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Highlights – Other Ongoing Projects

Some of the on-going projects being executed by HCP-International for esteemed customers like SATORP

(Jubail-II, Saudi Arabia), Oman Gas Company / VALE International SA (Sohar, Oman) and KNPC and KOC in Kuwait are –

Jubail Export Refinery Project 5B – Plant UtilitiesSaudi Aramco TOTAL Refining and Petrochemical Company (SATORP) is setting up a world-class refinery with a  capacity  of  400,000  barrels  per  day (bpd) at the industrial city of Jubail II in the Kingdom of Saudi Arabia to process Arabian heavy crude oil into high-value refined products of the best specifications, to meet the growing global demand.

Jubail Export Refinery Project, Package 5B (Plant Utilities) has been awarded to SK Engineering & Construction Co., Ltd. (SKEC) by SATORP as a prime contractor to provide design, engineering, procurement, construction, pre-commissioning, commissioning, start-up and performance tests assistance.

Larsen & Toubro ATCO Saudia LLC participated in the open and transparent bidding process with SKEC and has been successful in securing mechanical construction work against stiff competition from local construction contractors.

The scope of work includes mechanical construction for 1,800 m3 portable water system, 726 m3/h de-mineralisation system, condensation system (train 1 – 480 m3/h, train 2 – 630 m3/h), air system, nitrogen system and interconnection.

Package 5B is spread over 20 month’s duration commencing from April 2010. The refinery is scheduled to start operations by the end of 2013.

Gas Pipeline at Oman for VALE International

L&T Electromech LLC, Oman bagged its

first gas pipeline EPC project in Oman, in February, 2009, from Oman Gas Company  (OGC).  The  18”  pipeline  will transport natural gas over a distance of 9 km from Sohar GSS to VALE Plant in Sohar Industrial Port area (SIPC).

OGC is involved in the transmission and distribution of natural gas, through a large network of gas pipelines, compressor stations and gas supply stations. The company also provides project management services in pipeline construction.

The scope consists of project management, detailed engineering, procurement, construction, testing, pre-commissioning, commissioning of civil, mechanical, and E&I work related to the gas pipe line construction.

The scope also covers installation and successful operation of new tie-in work for VALE Plant and associated pipe work in Sohar GSS; installation of pressure reduction stream, pipeline including scrapper launcher and receiver, flow metering skid, inlet manifold and associated pipe work of valves including tie-in work and other modification on the existing GSS; tie-in with the existing flares, drain and instrument gas system

(vent from the metering skid which is located in the VALE Plant plot area will be tied to the VALE Plant flare system.); all work related to installation of new LV switchboards, AC UPS system, lighting, earthing and bonding, cable trenches and ladders, control and power cables, etc. at Sohar GSS and VALE areas; all activities related to engineering, procurement, testing, installation and commissioning of the complete instrumentation system including the new field instrument control and safeguard systems, metering systems, telecom equipment software, etc.

The project is progressing on schedule and is expected to be completed by end-August, 2010.

Revamp of Effluent Treatment Facility (RETF) for KNPCKuwait National Petroleum Corporation (KNPC) is the sole agency in Kuwait for refining crude. KNPC’s refineries at Mina Al Ahmadi, Mina Abdullah and Shuaiba are located south of Kuwait City and have a refining capacity of 570,000 bpd.

Some time back KNPC decided to

Laying of 9 km, 18” dia. gas pipeline from Sohar Gas Station in Oman to VALE plant, executed by L&T Electromech for VALE International SA, Brazil.

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upgrade its refineries in order to meet the international pollution norms and supply low sulphur content fuel to the world market. In addition, KNPC also wanted to address the local fuel needs.

Among the various facilities that need to be revamped in the process of upgrading refineries is the effluent treatment plant. L&T Kuwait Construction Co was awarded a sub-contract by the EPC Contractor, Ahmadiah Contracting and Trading Co., Kuwait, to dismantle the existing tank and construct 25 new steel tanks along with related pipe work, for all the three refineries. The work involved three different locations and so, optimum utilisation of resources was a challenge.

Dismantling  of  tanks  was  done  in reverse jacking, a new method, which was highly appreciated. The construction of steel tanks was done by jacking method with strict safety and quality norms.

L&T’s work methodology and professionalism was appreciated by KNPC. With its meticulous planning and execution, L&T has created a lasting impression on the client.

Early Production Facility for KOC at Ratqa & Abdali - KuwaitKuwait Oil Company (KOC) has decided to speed up oil production by building an

Early Production Facility (EPF) of 120 MBOPD capacity. The Project  is divided into two sections – EPF plant and facilities and pipeline facilities. Upon completion, the facility will be able to export crude and gas to various booster stations.

The Project has been awarded as an EPC project to Process Unlimited (USA)/ Al Rashed-Kuwait, on BOOT (Build-Own-Operate-Transfer) basis, which in turn contracted the construction of the plot facilities to L&T Kuwait Construction Co. WLL (LTKC).

This is LTKC’s first project for KOC. LTKC’s scope of work includes engineering, supply and installation of tanks and pressure vessels, installation of rotary and static equipment, civil and structural work, and piping and flare erection.

As the work site is located far away from city, accommodation facilities for workmen and staff were put up near the site to save time and energy.

The civil work for the job has been sub-contracted to a competent local civil contractor. Manpower for all mechanical work was mobilised from India. More than 200 workmen of various disciplines, regions and countries worked together at the site.

With its in-house capabilities, LTKC has completed all its jobs well in advance. This efficient performance has brought in more orders from the client. One example is flare erection, which was not a part of the original scope. Two flares of 45m and 25m height have been erected by LTKC within a short span of 20 days. The early and timely completion has been well appreciated by the client. In matters of Safety, LTKC has received constant appreciation from the client as well as KOC. Several safety awards have been given by the client to the workmen to acknowledge the superior safety practices followed at the site.

Deputator piping assembly works by L&T-Kuwait Construction for Early Production Facility Project at Kuwait Oil Company.

Tank 205 under construction at Effluent Treatment Plant of Mina Al Ahmadi Refinery in KNPC.

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EPC – Reaping Competitive Advantage

We do not find a single business entity without a dynamic approach to their strategy.

With such dynamic international customers what strategy is needed by EPC contractors providing services and how do they achieve their purpose?

The Changing Scenarios...There is no denying the fact that the recent economic meltdown multiplied the complexity of EPC projects. Owner companies wish to get the project done through single source. Even the necessity of the project management consultant engaged to act on behalf of the Owner through the late 90s is now being performed by the EPC firm.

The so called triple constraints, time, cost and scope, have evolved into a complex world of multiple constraints to be managed by EPC project leaders.

If the EPC owner does not find in the market what the customer had specified in the project requirements, the conflict may remain throughout the project life-cycle.

Leadership & Value StreamThe key to success of any project is the project leader. The sheer scope and complexity of today’s projects makes that difficult. By virtue of its short lived project life cycle, project management teams move from project to project, often working in different countries. They may not have had the opportunity to work in multiple disciplines and develop managerial skills. Yet there are ways to succeed. EPC firms must think strategically to bridge the missing links in the experience of employees.

Co-location of the team and integration of key functions of EPC is the key. It may seem idealistic but it is not impossible. The project leader must have gone through the mill by job rotation, working in different phases of the three key elements during his

career. The primary responsibility is to bring the project from proposal to commissioning and handing over to the end user (known as value stream). Apart from EPC, the project leader must also manage the 5 Project Management Processes (Initiation, Planning, Execution, Monitoring and Controlling and Close out) and 9 PM knowledge areas (Integration, Scope, Time, Cost, Quality, Resources, Communication, Risks and Procurement).

Purpose, Process & PeopleThe project sponsor must communicate to the project leader through a project charter with a clear purpose for the project, role clarity of key project team members, communication matrix, authority levels, conflict resolution, values and behaviours. The project management methodology must be consistently followed and must integrate results of the project execution with the baseline schedule. This helps to measure the progress periodically with the right metrics and take corrective action at the appropriate time. The use of the software tools must not be a substitute for effective communication and interpersonal skills.

The project leader should ensure and

facilitate communication, strengthening the involvement of every team member and all stake holders. Jack Welch said, “Our biggest task is to fundamentally redefine our relationship with our employees. The objective is to build a place where people have the freedom to be creative, where they feel a sense of accomplishment – a place that brings out the best in everybody.”

Benefits RealisationThe management must provide enabling conditions for knowledge sharing as a source of competitive advantage.

An EPC firm also needs to institute an Earned Value Management (EVM) system which monitors schedule and cost variance as indicators of risk impact. The risk reviews are to be incorporated into project reviews. The senior management should support transfer of best practices developed by the leading companies. In other words, the purpose of the integration process is to ensure that the learning organisation adopts the best practices from the entrepreneurial organisation.

C.S. Pitchai Pillai, MBA, PMP

Mr. C.S. Pitchai Pillai of L&T giving a presentation on Risk Management at Qatar Area Office.

Technical inputs for all the articles on Hydrocarbon Construction & Pipelines Business (international operations) were coordinated by Mr. A.K. Sadasivan of International Business Development, E&C Division, Mumbai.

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New Coal Handling Plant at Vindhyachal for NTPC

I n  1983  L&T  executed  its  first  Coal Handling Plant (CHP) for NTPC – the Singrauli Super Thermal Power

Station. Since then L&T has executed 57 CHPs with a combined order value of Rs. 41086 million.

L&T landed with its biggest CHP order from NTPC in the year 2004, when it won the award for the coal handling plant for the Vindhyachal STPP (VSTPP) Phase III (2x500 MW), for a value of Rs. 1120 million, after facing stiff international bidding.

VSTPP had an installed capacity of 2260 MW. With the addition of 1000 MW in Stage III, it is poised to become the single largest power generating station of NTPC in India. The CHP awarded to L&T (Phase III) includes track hopper, crusher house, conveying system and two stacker-cum-reclaimers.

Salient Features of CHP – Phase III

A merry go round (MGR) system of coal transportation carries coal wagons from the mine to the site. The coal rake consists of special bottom discharge wagons to unload coal into the hopper of the 210 m long track hopper.

From here, the coal is conveyed to either the stockyard or the boiler bunkers. Coal from the stockyard can also be reclaimed and conveyed to the boiler bunkers.

ChallengesThe biggest challenge of the project was the construction of the track hopper, located barely 32m (centre to centre) from the operational track hopper of  Phase  I  and  18m  from  the  already existing coal stockyard. In order to make way for the construction of the new track hopper a road had to be removed, along with all its utilities, which had to be reinstalled later.

The ConstructionThe new track hopper was to come up

in the limited space between the old (but operational) track hopper and the existing coal stock pile. The distance between the existing and the proposed track hoppers was 32m while the distance from the edge of the existing coal  stockyard  retaining  wall  was  18m. It left a working space of mere 3m to 8m. With service roads, drains, lighting mast, RCC pavement, underground service water and sewer lines and no space for an approach road, there was hardly any room for the movement of men, material and machinery.

Another limiting factor was that the ground water table was just about a metre below the FGL, and the soil was a mixture of silt-clay and sandy silt and highly saturated. The disposal yard was about 5 km away from the site and was surrounded by the frequently operated MGR line (railway track). Excavation was allowed up to 1m above the water table for safe movement of the machinery, and the water table was monitored 24x7.  For this, additional boreholes were made in various segments of the track hopper area.

Various techniques were adopted to

overcome these challenges. These include sheet pile and strutting work, deep bore well dewatering system, mechanised deep  excavation,  Doka  formwork  with water stop tie rod arrangement, water jetting for installation of sheet piles, castellated beam for structural steel work of track hopper shed, monolithic construction of side walls, hopper and top frame beams, construction using bottom-to-top method, use of crane with skip bucket, and use of long boom excavator.

Despite  all  odds,  the  entire construction of track hopper, including all associated activities, was completed in 18 months. 

L&T is amongst NTPC’s most valued contractors. In fact, the coal handling plant executed by L&T for NTPC Simhadri Thermal Power Station is considered to be a model CHP by NTPC and is frequently referred to in many of their journals and forums. With the addition of this new coal handling plant at Vindhyachal, L&T hopes to further strengthen its ties with NTPC, and to create a few more benchmarks, of course.

5.4km coal handling plant for Vindhyachal Super Thermal Power Station at Madhya Pradesh.

Page 33: L&T NewsnViews Jan Mar 2010

News & Views, January-March 2010 33

Country’s Largest Transmission Line Research and Testing Centre

Yet another benchmark has been set. This time in power transmission technology.

L&T has established India’s largest transmission line research and testing centre at its Kanchipuram Campus. One-of-its-kind in the country, the centre can test transmission line towers of various sizes and capacities.

The facility, spanning 25 acres and set up at a cost of Rs. 25 crores, was inaugurated on November 12, 2009 by Mr. S.K. Chaturvedi, Chairman and  Managing  Director  of  Power  Grid Corporation of India Limited.

The test centre is equipped with gigantic steel loading structures for three directional load applications, and an expansive concrete test pad with a unique foundation set-up to support tower bases of any shape up to 35 x 35m. This unique facility also includes Advanced Human Machine Interface (HMI) to ensure reliability of transmission network by validating designs through full-scale proto testing of towers required for development of EHV networks (up to 1200 kV and 95 m height).

Mr. K.V. Rangaswami, Member of Board & President – Construction said, “This could easily be one of the biggest and most sophisticated research and testing centres in the world apart from being the largest in the country. L&T has commissioned close to 12,000 km of transmission lines over tough and demanding terrains in over 10 countries across the world. With such an advanced and dedicated tower testing centre, L&T is now poised to scale new heights through rapid completion of transmission line projects that will also help India realise her ambitions of taking power to even remote places.”

Talking about the merits of this unique facility Mr. Rangaswami said, “The testing station enables design and validation of innovative configurations without any limitations on size, shape

and magnitude of loading, which so far has not been possible in the industry due to restrictions of available testing facilities. Also, timely validation of tower design will help in conforming to foundation design and procurement of steel thus reducing project gestation period greatly.”

With an extensive range of operations from design, detail engineering and manufacturing of towers in its own ISO & OHSAS certified factories at Puducherry and Pithampur, including testing of

towers to turn-key construction of transmission lines, L&T is ready to meet challenges and set further benchmarks in the industry.

As of now, there is approximately a six month waiting period for tower testing, both in India and abroad. With this in-house testing facility, L&T is now in an exclusive position to expedite its projects. This will have cascading benefits not just for the power distribution agencies but for the society as well.

•  Computerised central loading and monitoring system that can simulate actual   loading. •  Freedom to choose the size and shape of tower to achieve optimisation.•  Electrically operated winches with dual-speed variable frequency drives to   enable smooth loading.•  Accuracy in testing through sophisticated in-house SCADA touch-screen based   software.•  Towers up to 1200 kV with 95 m height can be tested•  Towers can be tested with exceptional heavy loading (1000t per leg) and large   base width (up to 35 m)•  India’s  largest  control  room with a viewing gallery  that offers a 3600 view of the entire testing facility•  The  only  facility  in  India  to  have  full-fledged  design  and  fabrication  infra structure within the testing centre.

Advantage – TLRTC

A view of the testing centre

Page 34: L&T NewsnViews Jan Mar 2010

34 News & Views, January-March 2010

A Super Success StoryThe Vadodara-Bharuch Superway

The Vadodara-Bharuch toll way project, named ‘VB Superway’, is the country’s most modern

highway. This 83.3 km highway between Vadodara  and  Bharuch  on  NH-8  is  a part of the Golden Quadrilateral being developed by the National Highway Authority of India (NHAI). VB Superway is also an important link in the high-density corridor connecting Mumbai and Delhi. 

The project was designed, engineered, and financed by L&T Vadodara-Bharuch Tollway Limited (L&T-VBTL), a special purpose vehicle promoted by L&T Infrastructure  Development  Projects Limited. L&T-VBTL also saw to the operations and maintenance of this hi-tech project. The construction work was carried out by Infrastructure Operating Company – a part of L&T’s Construction Division. Zaidun-Leeng-Artifact Projects Private Limited was appointed as the independent consultant for design and supervision of the project.

The total cost of construction of the project was around Rs. 750 crore. The work was to be completed in a period of 18  months  that  included  three  months of monsoon. The agreement was signed on July 11, 2006 and work began in December 2007 after cutting of trees by the forest department, land clearance, etc. L&T completed the project much in advance by March 2009 and toll collection began in June 2009.

For efficient execution of the project the entire stretch was divided into four sections of around 20km each. The scope of work included widening of the entire 83.3  km  from  four  lanes  to  six  lanes, repair of the existing carriageway, repair of 10 major bridges, 36 minor bridges and 70 culverts, construction of 11 new flyovers, 20 new pedestrian underpasses, two railway over bridges, eight cattle crossings, one vehicular underpass and improvements to 44 minor intersections, construction of 22 km of 8-m wide service 

roads (11 km on each side), 11 bus bays, 31 bus shelters, two truck bays, two rest areas, one toll plaza and one base camp. The picturesque wedge shaped toll plaza is an innovative structure conceptualised for the first time in India.

Other responsibilities included installation of signboards to alert commuters about the construction activity, installation of global positioning systems to display weather conditions as electronic flash messages, emergency call booths and wireless communication networks linked to various service and medical centres for easy access during emergencies, two rest areas with facilities like trauma care units, restaurants, petrol pump and garage, and two truck lay bays with wash room and drinking water facilities.

During  execution  of  the  road  work, L&T’s Infrastructure Operating Company had to meet several challenges. The first and foremost of course was to manage the heavy traffic and execute all construction activities with strictest safety standards. Another problem was the asphalt crust of varying thickness (400-700mm) that had developed on the road due to repetitive overlays over the years. This not only had to be milled but also re-used to avoid problems of space constraint and waste accumulation. The CBR of soil was also improved from 2% to 20% by soil stabilization using lime method for sub-grade. To ensure good quality of lime, two lime plants were also installed at the site. To ensure consistency and early completion, pre-casting was used extensively.

For smooth operations of the toll road, a Highway Traffic Management System was installed. Its special features are:•  Emergency call boxes at intervals of 2 km intervals, connected to control room   to help commuters during emergencies•  Variable Messaging System to convey traffic conditions and weather forecast to   the commuters•  CCTV at the junctions and the Plaza to check traffic intensity, blockage, etc.•  Meteorological System to collect weather data•  Radio communication for smooth monitoring and patrolling •  Automatic Traffic Classifier & Counter for traffic information •  Automated Tolling

Six-lane hi-tech highway (83.3km) connecting Vadodara and Bharuch.

Page 35: L&T NewsnViews Jan Mar 2010

News & Views, January-March 2010 35

Entry Category1. The L&T-ite Internal Magazine2. News & Views External Magazine3. Powai Pageant Tabloid4. L&T Superstar Challenger Quiz Wallpaper

Wallpaper

5. Powai Pageant Newsletter Design6. Sustainability Report 2008 Prestige Publication7. Table calendar - Wonders of the World

Table Calendar

8. H-Blast Furnace Photograph Photography9. Voice Express E-Zine10. Knownet Awards Welcome Presentation

Multimedia CD-Rom Presentation

L&T bagged a tally of 11 awards at the ABCI Awards 2010, organised by the Association of Business Communicators of India. This is the highest

number  of  awards  won  by  any  of  the  86  companies  from  around  the  country  that participated in this annual contest.

The awards include the ‘Magazine of the Year’ award bagged by in-house magazine ‘The L&T-ite’. Other categories in which L&T made its presence felt are –

L&T Wins Highest Number of Honours at ABCI 2010

Mr. J.P. Nayak, President – MIPD and Board Member (with Board level responsibilities of L&T’s corporate communications) receives the ‘Magazine of the Year’ rolling shield from the Governor of Maharashtra, Mr. K. Sankaranarayanan, at the ABCI Awards Ceremony, on March 19, in Mumbai.

Gallery

Page 36: L&T NewsnViews Jan Mar 2010

36 News & Views, January-March 2010

Mr. Lawrie Haynes and Mr. A.M. Naik with senior officials from Rolls-Royce and L&T.

L&T and Rolls-Royce, the global power systems company,

have signed a Memorandum of Understanding (MoU) for cooperation to address the need for light water reactors (LWR) in India and internationally. LWR technology is in use in over sixty per cent of civil nuclear power plants operating worldwide.

The areas of collaboration include nuclear instrumentation and controls, engineered products and systems, reactor components, engineering services, in-service reactor support and waste management.

Cooperation for instrumentation and controls will form the first operational phase of this relationship between the two organisations to bridge the gap in the existing supply chain in India.

Mr. Lawrie Haynes, Rolls-Royce, President – Nuclear, said, “India has developed an impressive nuclear capability  over  the  last  34  years  which rivals that of any country. India is a key strategic market for Rolls-Royce and I am very pleased that we are working with Larsen & Toubro, one of the country’s most pre-eminent engineering companies. Our skills and capabilities

are complementary and I am confident that we can forge a strong and mutually beneficial relationship.”

Mr. M.V. Kotwal, Member of the Board and Sr. EVP – Heavy Engineering, said, “The agreement brings together rich experience and will effectively leverage the strengths of both the

companies to tap rapidly emerging opportunities in India, UK and rest of world.”

The agreement between Rolls-Royce and L&T follows the recent bilateral Civil Nuclear Cooperation Declaration by  the Indian and UK Governments.

Rolls-Royce and L&T to collaborate

Bonding with the Best: Mr. Lawrie Haynes and Mr. A.M. Naik shake hands after signing the MoU.

Page 37: L&T NewsnViews Jan Mar 2010

L&T and Gujarat Narmada Valley Fertilizer Company

(GNFC), Bharuch, Gujarat entered into a formal agreement to set up an Ammonia Syngas Generation Plant, on February 19,  2010.  The  plant,  valued  at  Rs.  987  cr, 

is to be completed in 30 months. It will produce 123,700NM3/hr Syngas or Ammonia equivalent of 1120MTPD.

The contract was signed by Mr.  A.D.  Modashia  (Executive  Director, GNFC) and K. Ravindranath (Executive

Vice President, Hydrocarbon Mid & Downstream,  E&C  Division)  in  the presence of Mr. Guruprasad Mohapatra I.A.S.  (Managing  Director,  GNFC). Others present on this occasion were Mr.  R.D.  Khambhalkar  (GM-Projects, GNFC),  Mr.  P.G.Dave  (Chief  Manager, GNFC), Mr. A. Radharaman (Project Sponsor, L&T), Mr. A.M. Joshi (Project Manager, L&T) and the project team.

This is the first feedstock conversion project ordered, as per directive from GoI, to convert FO/LSHS based Ammonia plants to Natural Gas, in order to bring down the specific energy consumption to produce per MT of Ammonia.

L&T shall execute this project on a License + EPC on a LSTK basis including process technology from Haldor Topsoe affirming L&T’s integrated capabilities to execute critical plants for fertilisers and refineries.

News & Views, January-March 2010 37

L&T has been decorated with yet another honour – ‘Company

of the Year’ – this time by the prestigious publication Business Standard.

At a glittering ceremony in Mumbai, Union Home Minister, Mr. P. Chidambaram, presented the Award to  Chairman  &  Managing  Director,  Mr. A.M. Naik. Mr. Naik accepted the award along with Chief Financial Officer, Mr.  Y.M.  Deosthalee  and  President  – Engineering & Construction Projects, Mr. K. Venkataramanan.

Addressing an elite gathering of industrialists, business leaders, corporate chieftains and senior government officials, Mr. Naik remembered the first time L&T had been described as the only company qualified to belong to India’s ‘national sector’, and by none other than Mr. Chidambaram. Mr. Naik said that L&T was strongly committed to nation building. He also reaffirmed L&T’s commitment to creating shareholder value by successfully meeting challenges.

L&T impressed the Awards jury, comprising industrialists and business analysts, on the basis of its ability to withstand the economic downturn through a strategically diversified portfolio, its efficient cost structure, technology leadership and presence in the core sector, its ability to stand up to competition from multinationals, efficient use of capital and good returns

on net worth, its robust business model, high ethical and corporate governance standards, and the capability to maintain growth even in trying times.

After detailed deliberation on all the above points the jury declared that L&T was best positioned for the future in complex and critical businesses, which are vital for the nation’s development.

L&T is Business Standard’s ‘Company of the Year’

Mr. K. Venkataramanan, Mr. A.M. Naik and Mr. Y.M. Deosthalee receive the ‘Company of the Year’ Award from Mr. P. Chidambaram.

(L to R) Mr. B.R. Patel, Mr. P. G. Dave, Mr. R. D. Khambhalkar, Mr. A.D. Modashia, Mr. Guruprasad Mohapatra, Mr. K. Ravindranath, Mr. K.C. Jatania, Mr. A. Radharaman and Mr. A.M. Joshi pose for photograph after signing the contract.

Contract signed for Ammonia Syngas Plant

Gallery

Page 38: L&T NewsnViews Jan Mar 2010

L&T-Komatsu (LTK) bagged an award for being ‘The

Most Innovative Company in Energy Efficiency & Conservation’ from the Bangalore Chamber of Industry and Commerce (BCIC) on February 11.

The award was conferred at a seminar on innovative methods of energy efficiency and conservation adopted by industries in Karnataka. LTK showcased the various innovative methods practiced by it. Mr. T.V. Venkatesh, Head-Hydraulic Works, LTK, received the award from the Chief Minister of Karnataka, Mr. B.S. Yeddyurappa.

Other participants included Infosys Technologies, Kennametal, Toyota Kirloskar, Bosch, and Lanco Power.

This award recognises LTK’s commitment to energy conservation in lines with the EHS management system followed by L&T.

Chairman    &  Managing  Director, Mr. A.M. Naik was awarded the ‘CEO of the Year’ honour by

the Bengaluru-based Indian Society for Training & Development (ISTD).

Mr. S. Raghavan, Sr. Vice President, IPM-OC,  MIPD,  accepted  the  award  on behalf of Mr. Naik from Prof. J. Philip, Dean of Xavier Institute of Management Education, Bengaluru, at the 40th ISTD National Convention held in Bengaluru recently.

The award carried a cash component, which  was  donated  back  to  ISTD  by  Mr. Naik. “At L&T, our business vision has always been closely aligned with the larger goals of nation building. Keeping this broader objective in mind, we are

returning the cheque so that it can be utilised for organising various training programmes by ISTD,” said Mr. Naik.

Established  in  April  1970,  ISTD 

is a non-profit society and a premier institution devoted to the cause of human resource development in India.

L&T Komatsu bags Award for Energy Efficiency & Conservation

Mr. A.M. Naik Conferred ‘CEO of the Year’ Award by ISTD, Bengaluru

38 News & Views, January-March 2010

Mr. T.V. Venkatesh (right), receiving the award from the Chief Minister of Karnataka, Mr. B.S. Yeddyurappa.

Prof. J. Philip handing over the award to Mr. S. Raghavan (right).

Page 39: L&T NewsnViews Jan Mar 2010

Gallery

News & Views, January-March 2010 39

Emphasising its growing presence in the power sector, L&T added yet another feather to its cap on

March 2, 2010 when the Punjab Chief Minister, Mr. Prakash Singh Badal, laid the foundation stone for L&T’s 1400 MW thermal power plant in Rajpura, near Patiala. Chairman & Managing Director, Mr. A.M. Naik, stood alongside the Chief Minister as the six-foot tall black granite

slab was unveiled. Also present at this widely publicised ceremony were top officials from the Government of Punjab and the Punjab State Electricity Board.

Soon after the ceremony at the plant site in Village Nalash, Mr. Naik was ferried by helicopter to address a massive rally at Rajpura, attended by over a lakh people. In a speech laced with stirring phrases in Punjabi, Mr.

Naik spoke of L&T’s commitment to the development of Punjab. In addition to the power plant, he referred to the recent project order in Bhatinda and to the on-going realty venture in Chandigarh. His address was greeted with an effusive response from the gathering. Mr. Naik was also presented a ceremonial sword (a traditional emblem of valour) and a shawl by the CM. Speaker after speaker, including the Chief Minister, the Deputy Chief Minister Mr. Sukhbir Singh Badal and state cabinet minister, Mr. Manoranjan Kalia, spoke in glowing terms of L&T, enumerating some of its major milestones. Silver salvers, etched with the words ‘Power to the People’, were presented to the state leaders on L&T’s behalf. Also present were Mr. A.K. Chhatwani, Sr. Executive Vice President and Mr. R.K. Sharma, Vice President. Mr. Chhatwani is the Chairman of Nabha Power Limited – the L&T subsidiary which will own and operate the power plant.

The event was organised by a cross-functional team in Chandigarh including Mr. Arup Bhattacharya, Area Manager, Mr. Sureshkumar Narang, Project Director, Mr. Abhijeet Gupta, Mr. J.S. Gill and several others.

L&T Adds New Dimension to Role in PowerPunjab CM Lays Foundation Stone for L&T’s First BOO Power Plant

Mr. A.M. Naik with the Punjab CM and other dignitaries at the foundation stone laying ceremony.

Mr. Prakash Singh Badal addresses the audience.

Page 40: L&T NewsnViews Jan Mar 2010

Mr. K. Venkataramanan (KV), Member of the Board & President E&C Projects,

addressed the august gathering at the inaugural session of the two-day OceanTEX 2010 Conference, on February 4, 2010. The conference was held at the Bombay Exhibition Centre, Mumbai.

Chemtech Foundation organises this mega event, comprising India’s biggest oil & gas related events, every two years. A technology exposition, well-represented by the global oil & gas industry and truly bearing the spirit of ‘World Meet of the Process Industry in India’, was held from March 3 to 6. KV delivered an inspirational

concluding address. He painted an integrated national vision for deep sea exploration and development. He gave a lucid chronological description of India’s response to challenges in the sectors of nuclear power, space, defence research and development programmes.

KV named several well coordinated national efforts with time targets as benchmarks for deep water development. These were the nuclear power programme undertaken under the pioneering leadership  of  Dr.  Homi  Bhabha,  the integrated missile programme under the leadership of Dr. Abdul Kalam Azad and the ISRO-led space programme.

KV said that if the present decade can be dedicated to offshore deepwater development programmes, it will have a substantial impact in safeguarding India’s energy security.

KV’s inspirational and visionary thoughts were appreciated by all the delegates and were quoted by various speakers, even at the awards ceremony graced by the Governor.

Gallery

Printed at Studio Bahar, 23-A, Central Chowpatty Building, Chowpatty, Mumbai 400007. Edited by D. Morada for Larsen & Toubro Limited, Corporate Communications Dept., L&T House, Ballard Estate, Mumbai 400 001. The views expressed in this magazine are not necessarily those of the Management of Larsen & Toubro Limited. The contents of this magazine should not be reproduced without the permission of the Editor. Not for sale - only for circulation among the employees of L&T Group of companies.

ABCI

Member

KV’s insightful address on Deep Sea Exploration & Development at OceanTEX 2010

KV addresses the gathering at OceanTEX 2010.

L&T was honoured with two prestigious awards at this year’s OceanTEX.While Chairman & Managing Director, Mr. A.M. Naik was acknowledged 

as the ‘OceanTEX Business Leader of the Year’, L&T was declared to be the ‘Emerging Indian MNC’.

Mr. K. Venkataramanan, Member of the Board & President – Engineering & Construction Projects, accepted both the awards on behalf of Mr. Naik from the Governor of Maharashtra, Mr. K. Sankaranarayanan, at a ceremony in Mumbai.

Top honours for L&T and CMD, Mr. A.M. Naik

The Governor of Maharashtra presenting the OceanTEX Business Leader of the Year Award for Mr. Naik to Mr. K. Venkataramanan.