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STUDYING THE PROCUREMENT MANAGEMENT SYSTEM IN CROSS COUNTRY NATURAL GAS PIPELINE
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STUDYING THE PROCUREMENT MANAGEMENT SYSTEM IN CROSS COUNTRY NATURAL GAS PIPELINE PROJECTS & SUGGEST TECHNIQUE FOR IMPROVE THE PROCESS
Executive summary
The project title is Studying the procurement management system in Cross Country Natural Gas pipeline projects & suggest techniques to improve the process . This report is divided in five main parts. First is introduction about company GSPL and industry in which GSPL is working. Second tells about the different project activities in a project. Third chapter is about the standard process of procurement management in a project. It tells there are main 6 steps in procurement management of any project and explains about the input, tools & techniques and outputs of each step. Fourth chapter is mainly about the analysis part. Master schedule of Darod-Jafrabad pipeline project, Section-A is considered as reference and from that schedule, list of critical items are find out. There are total 12 critical items for procurement considering the master schedule. Main line pipes, 5 mechanical items, 3 electrical items and 3 items from instrumentation & control. Then existing method for procurement of these items is analyzed. This is very excellent method for procurement management of such a huge pipe line construction project. But No process is complete without a system for continuous improvement. Similarly in this method also some scope for improvement is there. Fifth chapter covers the recommendation/suggestion, limitation of study, conclusion and key learning part of the project report. It has been observed that major delay occurs in engineering document approval and placement of purchase order as mentioned in master schedule. Round table meeting among GSPL, PMC and contractor+ vendor is good solution to minimize the delay in approval of engineering document. One model can be made which will check the placement PO every 15 days as per the master schedule and if not placed than push the process. Then revise the master schedule as per the new date of placement of PO.
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Introduction looks like its sun rise for the company long way to go !!
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Industry overview
Natural gas is a colorless, odorless, naturally occurring gaseous mixture of hydrocarbon components. Natural gas is used in a variety of applications, such as feedstock in fertilizer in the petrochemical industry and as fuel in the power generation manufacturing of steel, textile, ceramic, glass and other industrial products. As a fuel, natural gas competes with a range of alternative products such as coal and lignite as well as petroleum products such as liquefied petroleum gas, naphtha, high speed diesel, light diesel oil and fuel oil. However, due to lower fuel, operating costs and better combustion characteristics, natural gas has distinct economic advantages over other sources of energy. In addition, natural gas has substantial environmental advantages over other energy sources, due to lower emissions.
Worldwide, the percentage of global primary energy consumption of natural gas rose from 19% in 1980 to 24% in 2002. High growth in demand of natural gas is expected to occur in developing countries at a rate of 3.9% per year between 2001 and 2025. The Indian natural gas market is relatively underdeveloped compared to other regions of the world. By the years 2024 to 2025, the share of natural gas would increase to 20% of total primary energy consumption, according to Hydrocarbon Vision 2025.
Gujarat is one of the largest oil and natural gas producing states in the country. Today, Gujarat has the most developed natural gas market in India. Gujarat not only has competing natural gas suppliers but also has competing pipeline network operators. The natural gas suppliers in Gujarat are GAIL (which is currently marketing the natural gas produced by ONGC and joint venture companies), Panna Mukta Tapti JV, GSPC/Niko, IOCL, BPCL, Cairn Energy, Petronet LNG Terminal, Hazira LNG Terminal.
Gujarat has the largest natural gas pipeline network among all the Indian states. The pipeline network in Gujarat comprises of the North Gujarat and South Gujarat network of GAIL, a part of the HBJ pipeline network, the ex-Hazira network of GAIL, a part of the DVPL pipeline network, the pipeline network of GGCL and pipeline network of GSPL. Gujarat has the only two operational LNG terminals in India. Supplies to Gujarat are expected to increase manifold, with Petronet and Shell expanding their LNG re-gasification capacity. Industrialization, proximity to supply sources and developed natural gas transportation infrastructure have resulted in Gujarat emerging as the largest natural gas consuming state in the country
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