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Highlights

MAY 2016 - ISSUE 1

SPOTLIGHT ON:

Special Topic:
Power Generation: The National Thermal Power Corporation 2021

L&T Valves Engineered to Perfection

Technical Insight:
Desuperheaters 8-9

Country and Market Focus:


India 14-15

News Throughout the Region:


Within India and Beyond 1718
The insiders guide to flow control in India, Iran, Bahrain, Egypt, Kuwait, Oman, Azerbaijan, Jordan,Kazakhstan, Qatar, Saudi Arabia, Sri Lanka, UAE

SCO RPIO

TM

VALVES & CONTROLS

The global valve industry is governed by end-users approvals for


products, manufacturing plants and
their quality management systems.
L&T Valves belongs to a select
group of manufacturers in the
world approved and accepted by
key global majors in oil & gas and
power generation domains. Valve
World India caught up with the two
senior leaders of L&T Valves, Mr.
N V Venkatasubramanian, Chief
Executive & Director, and Mr. Arun
Dev, Vice President - Marketing and
Contracts, to talk about the companys plans for Indian and international markets and to find out what
makes its engineered valves among
the best in the world.

AN ISO CERTIFIED COMPANY / IBR APPROVED


YOUR SOLUTION PARTNER FOR
HIGH PRESSURE AUTOMATION VALVES
FOR OFFSHORE & ONSHORE APPLICATION

www.scorpiovalves.com
Continued on pages 4-5

REGIONAL NEWS

Indian Government to Auction Marginal Oil & Gas Fields

BPCL to expand refining capacity


In a move to expand and upgrade its refining capacity and augment its marketing
infrastructure, Bharat Petroleum Corporation (BPCL) is reportedly planning to spend
some Rs 10,000 crore in FY17. An expansion
project underway at the Kochi refinery will
take about 40% of the BPCLs planned capex
for 2016-17. The refinery is adding 6 million
tonne per annum (MTPA) to its existing 9.5
MTPA capacity.BPCLs focus is the exploration, production and retailing of petroleum
and petrol related products. The retail business unit of BPCL markets petrol, diesel and
kerosene.

Maintenance at SEZ RefineryReliance


Industries Limited has announced that it
is planning a three-week shutdown in May
this year of one of the crude distillation
units at the SEZ Refinery for routine maintenance and inspection activities. The other
three crude distillation units including all
secondary processing units are expected to
operate at normal throughput at Jamnagar
refinery complex. No impact on commercial
commitments are anticipated.

After several months delay because of lower


oil prices, the Indian Government is about
to commence auctioning marginal oil & gas
fields. An Indian Oil Ministry official stated
that The Oil Ministry will hold a meeting
before the end of April to conclude a timeline
when the auction will take place and once
this has been established Ministry officials
will initiate a travelling roadshow to put the

small fields on display to potentially interested buyers. Many of these fields were
originally owned by the Oil and Natural Gas
Corporation. They had remained undeveloped
for many years because of the fact that it was
thought that their reserves where small and
further because of technological restrictions
and the high costs that would probably go
hand-in-hand with developing them. In total

the Indian Government will put up 67 fields


for auction that will be grouped into 44 sections for sale. The sections have been formed
in order to make them financially attractive
to purchasers by paving the way so that
common infrastructures can be set up, which
will help to keep costs down.The auction will
certainly be interesting in that it will test
whether some of the important changes that
the Indian Government has made recently to
attract investment to the development and
exploration sectors of the oil & gas industry
actually work. Some of the changes that the
Government has introduced have been to allow companies marketing freedom for gas and
the introduction of revenue-sharing instead of
profit sharing.It is hoped that the sales and
the Indian Governments new policies towards
oil & gas will lead to a higher oil production
at home since over recent years oil production
there has been dropping every year and currently only accounts for 20% of Indias oil production. Prime Minister Narendra Modi has set
up a campaign to reduce Indias dependence
on oil imports so that by 2022 these will have
been reduced to 67%. In order to achieve this
goal a considerable increase in oil production
and development at home is needed.

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Other Products:
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Rating: 150# through 2500#

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VFlo Segmented Ball Valve


DiskFlo Double Eccentric Butterfly Valve
EFlo Eccentric Plug Valve
QuickFlo Full Bore Ball Valve
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Linear and Rotary Actuators

MASCOT VALVES PVT. LTD.


166/167 Naroda GIDC, Naroda, Ahmedabad 382330 GJ, India
Ph. +91 79 22823369 Email. info@mascotvalves.com
www.mascotvalves.com

EDITORS PAGE / COLOPHON

Valve World India is the insiders guide to flow


control in India, Iran, Bahrain, Egypt, Kuwait,
Oman, Azerbaijan, Kazakhstan, Qatar, Saudi
Arabia, Sri Lanka, UAE
Publishing Directors
Robert-Jan Campo
r.a.campo@kci-world.com
Tel.: +31 575 585 275]]
Ladan Pourtork
l.pourtork@kci-world.com
Tel.: +31 575 585 292

Director India Operations


Kay Creedon
k.creedon@kci-world.com
Tel.: 0031 683 671 708

Editorial Team

Welcome to
the Valve World
India Journal

Sarah Bradley
s.bradley@kci-world.com
John Butterfield
j.butterfield@kci-world.com
James Chater
j.chater@kci-world.com
Gillian Gane
g.gane@kci-world.com

Looking at the Journal , a regular feature will


be a company profiled in In the Spotlight
and this time it is L&T Valves (pages 4 and
5) who highlight the importance of the power generation industry to their business, the
successes they have had in the industry over
recent years, and their expectations for the
future.

James Hoare
j.hoare@kci-world.com
David Sear
d.sear@kci-world.com

Advertising contact (print & online)


Kay Creedon
k.creedon@kci-world.com
Tel.: 0031 683 671 708

Subscriptions (print & online)


Erica Riethorst
e.riethorst@kci-world.com
Tel.: +31 575 585 271
Valve World India will be published in four issues in 2016
and from then on in eight issues each year.

Publishing House
KCI Publishing B.V.
Jacob Damsingel 17,
NL-7201 AN Zutphen, The Netherlands

Mailing address:
P.O. Box 396, NL-7201 AJ Zutphen, The Netherlands
Info.zutphen@kci-world.com
Tel.: +31 575 585 270; Fax: +31 575 511099
Bank account: ABNAMRO 56.64.05.164
BIC: ABNANL2A
IBAN: NL50ABNA0566405164
China Office:
KCI Shanghai, Room 603, 6F, #400 Zhejiang Mid. Road,
200001, China
Info.shanghai@kci-world.com
Tel.: +86 21 6351 9609; Fax: +86 21 6351 9607
Germany Office
KCI GmbH, Tiergartenstraat 64, D-47533 Kleve, Germany
info@kleve@kci-world.com
Tel.: +49 2821 71145 0 Fax: +49 2821 71145 69
Canada Office
KCI Corporation, 36 King East, Suite 701,
Toronto ON MSC 1ES, Canada
Info.toronto@kci-world.com
Tel.: +1 416 361 7030; Fax: +1 416 361 6191

Facebook: https://www.facebook.com/valveworldindia
Twitter: https://twitter.com/valveworldindia
Linkedin: https://www.linkedin.com/groups/8510281

The publishers and the authors state that this magazine


has been compiled meticulously and to the best of their
knowledge, however, the publisher and the authors can
in no way guarantee the accuracy or completeness of the
information. The publisher and authors therefore do not
accept any liability for any damage resulting from actions
or decision based on the information in question. Users of
this magazine are strongly advised not to use this information solely, but to rely on their professional knowledge
and experience, and to check the information to be used.
KCI Publishing cannot guarantee the accuracy of information provided by participating companies and authorities.
The publisher reserves the right to combine, delete and
change sections.
The publisher reserves the right to edit and re-use (parts
of) the articles and to distribute the information by any
means.
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system or transmitted,
in any form or by any means, electronic or mechanical,
photocopying recording or otherwise, without the written
permission of the publisher.
Valve World India is a trademark of Technical Business
Publications B.V. registered under number 08084150 and
holding company of the KCI group of companies. TBP BV,
Donald D.F. Wiedemeyer (CEO), PO Box 67, 6680 AB Lingewaard, The Netherlands.
2016 All rights reserved.

On behalf ofKCI Publishing BV, it gives me


great pleasure to present to you the first issue of Valve World India Journal, a new sister
publication to our other famous valve brand
names: Valve World, Valve World Americas,
Valve World Asia, and Armaturen Welt.
Valve World India Journal is a dedicated publication for the Indian market with distribution
in: India, Iran, Bahrain, Egypt, Kuwait, Oman,
Azerbaijan, Jordan, Kazakhstan, Qatar, Saudi
Arabia, Sri Lanka, and the UAE. It covers all
topics relevant to the Valve Industry from
technical developments, new product innovations, market trends, interviews with
leading industry players, projects, and news
from across the region. Industries that are
addressed are: Oil &Gas, On & Offshore, Power Generation, Chemicals & Petrochemicals,
Water & Wastewater, Mining, Fertilizers, and
Pulp & Paper.
This first issue focuses on Indias Power Generation, both conventional power as well as
nuclear. Indias power demand is forecast to
exceed 300GW in the next ten years. To meet
the needs of Indias fast growing economy
and to provide secure, affordable and reliable
energy is going to be a huge challenge to the
power generation community during the coming years. However, this growth will present
enormous opportunities to valve and actuator
manufacturers to provide quality products to
support this demand.

According to the Frost and Sullivan Report


Future of the Indian Valves Market (pages
14 and 15) the demand for valves in the power sector has not yet reached its full potential
with only 13.9% of all Indian manufactured
valves being used in the Power Generation
industry. NTPCs article NTPC Powering Indias
Growth (pages 20 and 21) supports this
idea. NTPC predict that demand will increase
by leaps and bounds in the coming decennia
for valves, actuators and valve service parts,
not only in existing power stations and in
their refurbishment and maintenance, but also
for new power stations.
The future is bright for Indian valve manufacturers across all sectors and Valve World India
Journal looks forward to growing with you. We
are committed to delivering relevant, quality
content in every issue to support the Indian
Valve and Actuator market.
This publication could not have come into being without the help, support, and hard work
of a great number of enthusiastic people. I
would therefore like to take this opportunity
to thank you all. Also my thanks go to those
who supplied content to get this first issue
on the road. Together we will build a strong
and energetic community servicing the needs
of the valve industry in India.
This year we will publish a further three issues in July, September, and November. Next
year eight issues are scheduled. Each one will
contain a wealth of information to help you

ADVERTISERS
Advance Valves Global

AUMA India Private


Bell-O-Seal Valves

carry out your business even more successfully.


Lastly, I welcome your comments and feedback. If there are topics which you would like
to have featured or if you wish to contribute
to the publication please do let me know. I
will be delighted to hear from you. Please
contact me at: k.creedon@kci-world.com
I wish you very enjoyable reading.
With warm greetings and thanks,
Kay T. Creedon
Director India Operations

Distribution of upcoming issue:


In addition to the normal distribution we
shall have extra distribution of the May
issue at the following shows:
- 20th International Iran Oil, Gas , Refinining and Pertrochemical show in Tehran
6th9th May.
- POWER-GEN India, & Central Asia, New
Delhi, India, 18th 20th May 2016
- Fugitive Emissions Summit Americas,
Houston, Texas, USA 13-14th

Topics for upcoming July issue:


- Special topic Chemical and Petrochemical
- Technical Insight: Actuation
- Country and Market Focus : Kuwait

Meet the Valve World India Team in


Hall 44-2 Stand Number 1315 at Iran
Oil, Gas, Refinining and Pertrochemical
show in Tehran 6th 9th May

INDEX
Rajan Techno Cast

Scorpio Valves & Controls

13

South Valve Manufacture

23

Uniflow Control Instruments

18

15

Hi-Tech Applicator

21

11

Horizon Polymer

1/16

KITZ Corporation

DMG World Media ADIPEC

23

L&T Valves

Emirise Engineering

24

Mascot Valves

Gujarat Alloys Cast

17

Panam Engineers

12

Valve World India

May 2016

SPOTLIGHT ON

The global valve industry is governed by end-users approvals - for products, manufacturing plants
and their quality management systems. L&T Valves belongs to a select group of manufacturers
in the world approved and accepted by key global majors in oil & gas and power generation
domains. Valve World India caught up with the two senior leaders of L&T Valves, Mr. N V
Venkatasubramanian, Chief Executive and Director, and Mr. Arun Dev, Vice President - Marketing
and Contracts to talk about the companys plans for Indian and international markets and to find
out what makes its engineered valves among the best in the world.
By John Butterfield

L&T Valves Engineered to Perfection


I

n the field of industrial valves,


L&T Valves is a brand to be
reckoned with. A wholly-owned
subsidiary of the Indian engineering
conglomerate, Larsen & Toubro, the
company is one of the leaders in
providing flow-control solutions for
critical services.
While the company is five decades
old, it is also three years young. To
quote Mr. Venkat, In 1961, Audco
India Limited (AIL) was incorporated
as a joint venture between L&T and
Serck Audco, UK. Later, Flowserve
took over Serck Audco and thus became a JV partner in AIL. In 2013, L&T
acquired the shares of Flowserve,
and AIL became a 100% subsidiary of
Larsen & Toubro. In the same year,
all valve manufacturing and marketing operations of Larsen & Toubro
were integrated under a single entity,
L&T Valves Limited.

In the last three years, the company


achieved remarkable growth in terms
of product portfolio, geographic
coverage and customer base. The
revenue during this period grew at
a compounded rate of over 20% per
year.

Key markets
L&T Valves counts among its customers the global majors in the oil
& gas and power generation sectors,
as well as the EPCs that partner
them. This success has been built
on enduring customer relationships
backed up by world-class capabilities
to design and manufacture a wide
range of engineered valves.
When we ventured into the international market three decades ago, we
focused on the highly-demanding refinery segment and secured end-user
approvals for our gate, globe, and

L&T Valves has supplied over 4000 valves including 18 class 3000 MSSV to 2 x 700 MW Nabha Power Limited, Punjab, India

check valves (GGC) range. We offered


customised solutions that added
value to our customers, and this
helped us emerge as a major supplier of engineered valves. states Mr.
Venkat.
Even though project activity in the
oil & gas space has slowed down,
the company secured breakthrough
orders from major upstream and
refinery projects in 2015, thereby
improving their market share. Further, trunnion-mounted ball valves,
triple-offset butterfly valves, double
block & bleed plug valves, and control & automation solutions such as
HIPPS have enabled the company to
enhance penetration in the oil & gas
sector.

Wide variety of Gate, Globe & Check Valves - From Cryogenic to Ultra High Pressure applications

May 2016

Valve World India

In recent years, L&T Valves has also


made inroads into the power generation segment, both in India and
overseas. Mr. Venkat explains: We
renewed our focus on the power
sector and set up a modern facility

at Coimbatore in India to design


and develop high pressure valves
for power plants. Today the facility
manufactures the entire range of
valves required for supercritical and
ultra-mega power plants (UMPPs) valves in ASME classes up to 4500, in
high alloys including F91 and C12A.
L&T Valves has been approved by
all the major power customers and
EPCs in Indian and overseas. Recent
references include projects of NPCIL,
NTPC as well as prestigious combined
cycle power plants in US.
L&T Valves also has a very strong
presence in the Indian nuclear power industry, having supplied main
steam isolation valves (MSIV), critical
Isolation dampers (CID) and valves
for primary piping to most of the
nuclear power plants in the country.
Its worth noting that L&T Valves was
the first Indian valve manufacturer to
secure ASME N and NPT stamps.

SPOTLIGHT ON

Core Strengths
The strong R&D team that we
nurtured right from our inception
provides us matchless advantage in
the market. Our engineers with deep
understanding of industry standards,
process parameters and customer
specifications have created a series
of world-class designs adds Mr.
Venkat.
The designs are translated into high
performance products at the three
modern manufacturing facilities of
L&T Valves at Chennai, Kancheepuram and Coimbatore - all located in
the state of Tamil Nadu, India. The
company is very proud of its ability
to handle complexity and volume,
and its agility to respond to dynamic
project requirements. Mr. Venkat
tells us: Technology and innovation

are part of our corporate DNA, and


operational excellence initiatives
have provided significant impetus to
our growth over the years.
In addition, our project management capabilities that allow us to efficiently execute world-scale projects
involving multiple EPCs, provides us
a huge competitive advantage noted Mr. Arun.
L&T Valves has also set up a very
strong distribution network. In fact,
In India the company is considered
to be a pioneer in establishing a
country-wide network of authorized
distributors. Mr. Arun adds, We
believe in developing and nurturing
these stockists as our extended business partners. With their help, we
reach out to all the major industrial
centres in the country.

International
presence
For L&T Valves, the revenue from international
market varies every
year based on project
activity but accounts for
around 50%. Mr. Venkat
states We would like
to retain our core market in India, and maintain a fine balance between international and
domestic business.

Trunnion-mounted Ball Valves in sizes


up to 56, in ASME classes up to 2500

In the international
market, L&T Valves has
built a network that
spans the globe leveraging strategic alliances
with distributors and
agents in the major
markets. The Middle
East is the fastest growing territory for L&T
Valves, and key markets include Saudi Arabia, Abu Dhabi, Kuwait
and Oman.

requirements of this market emphasizes Mr. Arun.


Mr. Arun adds, Pharma is another
sector, which is going through a
shake-up. We have taken the tactical
decision to come up with a separate
range of products to address the requirement of the pharma industry.

The road ahead

Largest Triple-offset Butterfly Valve manufactured in India. 100 class 150


valve for water application

Local manufacturing/ value-addition


could emerge as a pre-requisite for
doing business in countries such
as Saudi Arabia as well as Nigeria
and Brazil. We track these developments closely and will enhance our
manufacturing footprint based on
customer requirements, Mr. Venkat
mentioned.

In India, besides oil and gas and


power, water segment is an important market for L&T Valves. Introduction of the PPP (public-private
partnership) model and entry of
international players have enhanced
market attractiveness. We have augmented resources and customized
our products to meet the growing

L&T Valves has aggressive plans to


grow its business and enhance its
market presence and share. In India,
wider market coverage and a deeper
penetration into existing markets will
be vital. In the international market,
new geographies and the successful
launch of new products will hold the
key to success.
We are sure that our high performance products and customer relationships will help us grow faster in
the coming years. Moreover, we are
looking to government investments
in oil & gas, power, water and fertilizer sectors in India, which will create significant opportunities for us
concludes Mr. Venkat.

Emerging sectors
In both international and domestic
markets, L&T Valves is a leader in
the gate, globe & check valves segment, and offers cryogenic, largesize, ultra-high pressure and high-alloy variants - in sizes up to 72-inch
and ASME classes up to 2500. Gate,
globe and check valves constitute
the core product offering of the company, but this is rapidly changing.
Over the years, we expanded our
product portfolio to address new
markets and territories. These products offer growth potential and we
are confident of leveraging the demand says Mr. Venkat.
High Integrity Pressure Protection System (HIPPS)

Valve World India

May 2016

PRODUCTS & PEOPLE

Indian experts to present in Germany


The Valve World events organised around the
world have traditionally enjoyed strong participation from the flow control community in
India, and the 2016 Conference & Expo to be
held later this year in Dusseldorf, Germany, is
no exception.
For example, as we go to press no fewer than
three prospective authors are being informed
that their paper proposals have been accepted for inclusion in the conference proceedings.
These include L&T Valves Mr Patil, whose presentation entitled Recent changes in fugitive
emissions standards and its ramifications is
set to be delivered on the very first morning
of the conference. Shortly afterwards, fellow expert Mr Subbarao from NSSL will be speaking on
Valve servicing and our experiences.
After the lunch break, the conference continues
with three parallel sessions, and in the materials and casting stream Mr Sanjeev (Mira Alloy
Steels) will be discussing Performance measures of foundry excellence. And just to round
off the top-quality Indian contributions, Mr Patil
will again be standing behind the lectern on the
Thursday morning to talk about Recent changes in valve standards and implications for manufacturers.
Of course, Indian expertise in flow control is amply represented on the Exhibition floor as well.
As of Mid-April, the catalogue lists a good number of Indian companies taking part, covering
products from valves to castings to seal technology. These include Hawa Valves (India), Metallic Bellows India, Shavo Norgren (India), Rajan
Techno Cast, Sanmar Foundries, Creative Castings, Hi-Con Technocast, L & T Valves, Wellmake

Rotex, Indias leading Solenoid Valve manufacturer, has announced the launch of its
ultra-low wattage range of direct acting
3/2 way explosion-proof universal solenoid
valves. With an impressive number of approvals from ATEX, IECEx, INMETRO, KOSHA,
PESO, CuTR, etc., this product is hailed by
Rotex as being the most energy efficient
solenoid valve available in the market today, consuming a mere 1 watt of power.
Designed for outdoor installation, the typical applications include solar powered
remote installations in wellhead isolation,
oil & gas pipelines, offshore platforms and
safety shutdown systems requiring high reliability. The low power consumption makes
these valves suitable for various BUS powered systems such as ASi, Profibus, Devicenet, especially in extreme environments.

Technocast, GM Engineering and J.D. Jones & Co.


If you would like to take part in the Valve World
Conference & Exhibition 2016, the show is
scheduled for 29 November to 1 December 2016,
and will be taking place in Dusseldorf, Germany.
Visitors will be spoilt for choice, as the conference boasts no fewer than seven plenary speakers, three workshops and 17 paper sessions
with 54 individual presentations on topics such
as design, maintenance, control valves, fugitive
emissions, safety, offshore, standards, sealing,
actuation, etc.

LEADING INVESTMENT CASTING


MANUFACTURER IN INDIA

INVESTMENT CASTING
MICRO FUSIONE
FEINGUSS
INDUSTRIES SERVED
- INDUSTRIAL VALVES
- AUTOMOTIVE
- INDUSTRIAL PROCESS PUMPS
- DEFENSE
- MEDICAL IMPLANTS
- POWER PLANT EQUIPMENT
- AEROSPACE
- GENERAL ENGINEERING

APPROVALS
- ISO: TS : 16949
- AD2000 MERKBLATT W0 BY TUVNORD
- PED 97/23/EC BY TUVNORD.
- BUREAU VERITAS MARINE APPROVAL.
- LLOYDS MARINE APPROVAL.
- AMERICAN BUREAU OF SHIPPING MARINE APPROVAL.
- DNV / GL MARINE APPROVAL.
- NORSOK M-650 APPROVAL.

SHAPAR INDUSTRIAL AREA, RAJKOT-GONDAL HIGHWAY, DIST:RAJKOT - 360 024 INDIA

TEL : +91-2827-252160,252161, FAX : +91-2827-252562


EMAIL : info@rajantechcast.com WEB :www.rajantechcast.com

May 2016

Valve World India

Rotex India launches


Ultra-Low Wattage
range of Solenoid Valves

In addition, the ever-growing expo now fills


three massive halls, and numbers over 470
exhibiting companies from 36 countries worldwide. With over 14,000 square metres of exhibition space devoted to valves, control valves,
actuators, safety products, seals, etc, this is the
location to meet with prospective partners and
suppliers, whatever your valve needs.
For more information:
Conference: www.valve-world.net/vw2016,
Exhibition: www.valveworldexpo.com

New role at KSB for Farrokh Bhathena

KSB Pumps Limited in India


has appointed Mr. Farrokh
Bhathena to the role of Director Sales & Marketing, effective from April 2016. Mr. Bhath-

ena will use his 25 years plus


experience to strengthen the
position of KSB in India, one
of the companys most important aims in todays competitive environment.
Mr. Bhathena graduated in
mechanical engineering and
is a certified Marine Engineer.
He spent ten years in the Merchant Navy before joining KSB
in 1990 as an Executive Officer
when he was part of a team
handling pumps for the refinery, petrochemical and fertilizer industries. He also moved

on to hold the positions of


Head of Product Management
and Head of Energy Business.
In his new role, Mr. Bhathena aims to increase the sales
figure from just over Rs 8,000
Mio today to over Rs 10,000
Mio in the next few years.
KSB in India offers solutions in
pumps, valves and services to
customers from the power, oil
and refinery, general process
industry, construction, water
and wastewater segments. It
is part of KSB AG, headquartered in Germany.

Gold Star Award


for Bell-O-Seal Valves
Bell-O-Seal Valves Private Limited was recently awarded
the Gold Star Award for Excellence in Young Entrepreneur
for Outstanding Achievements
and contribution for National
Unity and Economic Growth.
The function was organised
by Global Achievers Foundation and the event was held
at Howard Johnson, 132, Thanisandra Main Road, Near
Manyata Embassy Business
Park, Nagawara Junction, Bengaluru.
The award was presented by
the following Dignitaries:1) Ambassador (Dr.) V.B. Soni,
Former Diplomat / Ambas-

sador retired from the Indian Foreign Service.


2) H.E. Mr. Asif Iqbal - Honorary Consul Of Suriname
Country to South India.
3) Mr. Murat Kiran Regional

Director India, Turkish Indian Chambers Of Commerce


& Industry.
4) Honble
Justice
Chandrashekaraiah Former.
UPALokayukta (Karnataka).

PRODUCTS & PEOPLE

Cranes Duo-Chek now available in India


lection which together with the
light weight design allows a fast
response time which minimizes reverse velocity, slamming and water
hammer effect.

The Duo-Chek high performance


non-slam check valve from Crane
ChemPharma and Energy is now
available from the local Crane facility
in Satara, India.
Key features of this valve include
compact and lightweight dual plate
design for efficient seating, operation
and lower installation cost, independent springs with long legs to prevent
seat scrubbing and provide non-slam
performance, and retainerless valve
design without body presentation for
critical service applications.
Available in sizes ranging from 2 to
24 within 12 16 weeks from Sata-

ra factory and up to 88 from Belfast


factory.
Key benefits of Duo-Chek (also
known as Double Plate Check Valves)
over other type of check valves are:
1. Fast Acting faster closing ensures
protections to your expensive
pumps and compressors.
2. The Duo-Chek Valves can be specifically sized and tailored for given process operating conditions
to avoid wear problems and are
flexible with regard to installation
orientation (Horizontal, vertical up
or down flow).
3. Duo-Chek plates are closed by
springs with optimum torque se-

AUMA extends SIL solutions

TV certification achieved by AUMA


confirms that the companys SQ .2
part-turn actuators, SA .2 multi-turn
actuators and AC .2 actuator controls in SIL version comply with the
highest safety requirements. The actuators have achieved full latest IEC
61508 edition 2 certification and are
approved for safety-related systems
up to SIL 3 (for redundant system
architecture). The TV certification
also applies to low temperature versions for temperatures ranging from
-60 C to +60 C.
The safety function of AUMAs SIL
actuators can be configured with
different seating criteria, including
forced limit or torque seating to protect the mechanical integrity of the
valve. If required by the application,
different seating criteria for the safety function and standard actuator
functionality can be set.
Investment in standards accreditation supports increasing demand

for functional safety/SIL, particularly


for installations with high risk potential for both people and the environment. The initiative underpins
AUMAs commitment to comply with
the industrys highest safety standards.
In addition to the companys topof-the-range SIL devices designed
to meet the highest safety requirements, AUMA offers a Safety Figure
Calculated (SFC) range of actuators
that is extremely adaptable with a
high degree of configuration capability and cost flexibility. These actuators, with safety parameters assessed by exida a leading functional safety notifying body, are ideally
suited for applications with modest
SIL1 or SIL 2 safety requirements. The
SFC product range comprises SA and
SQ actuators with AM and AC (standard version) actuator controls plus
GK, GST and GS gear boxes.

Technical specification:
A
 SME pressure class 150 - 600 lbs
A
 PI trims standard 1, 5, 8, 10, 12
D
 IN, JIS, BS, AS, and ISO standards
are also available
W
 afer, lug, double angled and extended body styles
B
 ody Materials: Cast Iron, Carbon Steel, Stainless Steels, Duplex
Stainless Steel, Super Duplex
R
 esilient Seat Materials: EPDM, Buna-N, Neoprene, and Viton-B [registered trademark of DuPont Performance Elastomers L.L.C.]
Integral and overlaid metal seats
also available
E nd Connections: Raised Face, Plain
Face, Ring Joint, Weld-End, Hub-End
The Duo-Chek complies with Valve
Design API 594, Valve Pressure Testing
& Inspection API 598, Pressure/Temperature Rating ASME/ANSI B16.34,
Pipeline Valves API 6D and Production Valves API 6A with the options
of NACE MR-0175 and MR-0103 compliance, cleaning for liquid oxide service, special testing radiography,
magnetic particle, dye penetrant, ultrasonic, helium leak, etc.

Velan Valves India adds


steamtraps to its production line
Coimbatore-based Velan Valves India first
opened its doors in
late 2012. As of July
2016, the company
will begin designing,
testing, and manufacturing the Velan
steamtrap line. This
will create synergies
in their engineering
andmanufacturing
capabilities that will
enable them to competitively
maintain
and grow the line to
benefitVelans
customers in India and
worldwide. Velan will
continue to invest in
Research and Development to enhance
their range of traps produced by
the Indian facility over the coming
years.
This will be a welcome addition to
the y-pattern, cast steel, and small
forged valves already being manufactured by the company. Quality
that lasts is an important concept
for us and we are dedicated to ensuring all our products meet our
most demanding customers expectations, adds Ramesh Babu,
Velan Valve Indias Managing Director. Established in 1950, Velan

is headquartered in Montreal, Canada, and is a world leader in the


design and production of a wide
range of cast and forged steel
gate, globe, check, ball, triple-offset butterfly, knife gate, highly
engineered severe service valves,
and steam traps offering superior performance across all major
industrial applications. Over the
years, the company has built an
enviable reputation and we fully
intend to continue this tradition
well into the future.

A feather in Advance Valves cap


Make in India! This is the message
that Prime Minister of India, Shri Narendra Modi, has been emphasising to
Industry leaders across the world.
Advance Valves is pleased to announce that they have, in recent
months, successfully manufactured
and tested large-sized and high pressure-rated High Performance Triple
Eccentric Butterfly Valves meant for
Cryogenic applications.
With size and rating of 500mm (20)
ANSI # 900, not only is this valve designed for very high pressure ratings
(140 bar, or 2050 psi), it is also intended to operate at temperatures
down to -96 C (-320 F).
This product, coupled with other cryogenic valves, including larger sized
42 # 300 Triple Eccentric Butterfly
valves, will be deployed on American
shores in Chevron Phillips Chemical
(CPChem) Companys USGulf Coast
(USGC) Petrochemical project, a project sparked by shale resource development.
Based on the high-end requirements
of Advance Valves international clientele, they have in-house cryo testing capability for valve sizes up to
sixty inches, perhaps Indias largest
testing facility.
The confidence in the companys
products by world-class manufacturers such as CPChem and other clients makes for a very proud team at
Advance Valves as this product has
been designed, engineered & manufactured by Indians, in India and for
global markets.

Valve World India

May 2016

TECHNICAL INSIGHT

Turning down the heat with

DESUPERHEATERS
Desuperheaters are devices which are
used to inject controlled amounts of
atomized cooling water into a superheated
steam flow to reduce or control the
temperature of the steam. They are fast
becoming recognized as a valuable tool
in todays modern process plants which
are expected to operate continuously,
economically and with minimal
environmental impact.
By Raju Mistry, Product Manager, Mascot Valves Ltd., India

As the name suggests, Desuperheaters bring down the


temperature of super-heated
steam efficiently and quick.
This is done by injecting cooling water into a super heated
steam flow. As with any device, this unit is expected to
perform its duty efficiently and
quickly. The goal in terms of
efficiency is to achieve a minimal amount of un-evaporated
water at the next steam trap;
and the other the goal is to
complete the entire Desuperheating process as closely to
the point of water injection as
possible. In order to achieve
these two goals the designer

Events

2016

Our KCI live team organises targeted events, both globally and regionally, where professionals can meet and exchange ideas and information.
These platforms include conferences, summits, seminars, exhibitions, master classes and plant tours, often augmented with social events.

Managing Aging Plants


Conference & Expo Japan
Tokyo, Japan
www.plantenmei.com

Conference & Expo

Japan 2016

Fugitive Emissions Summit


Americas
Houston, TX, USA
www.fugitive-emissions-summit.com

FUGITIVE
EMISSIONS

SUMMIT

CHINA

Conference & Expo

MAY 31JUNE 1
JUNE
13-14

Pump Summit Americas


Houston, TX, USA
www.pumpsummitamericas.com

JUNE
13-14

Fugitive Emmissions Summit


China
Shanghai International
Convention Center

SEPT
20-21

Duplex World Seminar & Summit


Dsseldorf, Germany
www.duplex-world.com

OCT
12-13

Managing Aging Plants


Conference & Expo Americas
Houston, TX, USA
www.managingagingplants.com

NOV
9-10

Stainless Steel World


Conference & Expo Americas
Houston, TX, USA
www.ssw-americas.com

NOV
9-10

Pump Summit
Dsseldorf, Germany
www.pumpsummit.com

NOV
29-30

Valve World Conference & Expo


Dsseldorf, Germany
www.valveworldexpo.com

NOV 29DEC 1

Modern Mechanical Spray Desuperheater

needs consider whether the


device should make water
acceptable to steam or make
steam acceptable to injected
water, or both.

Earlier devices
Traditionally, water nozzles
were suspended into the
steam mains with sufficient
superior pressure. When this
was not possible, steam assisted atomizers were used.
At times localized restrictions
in pipe geometry were created
to generate superior pressure.
These techniques had their
share of disadvantages in
terms of the complexity of the
installations and the difficulties in achieving consistent
efficiency in varying steam
demands.

Modern devices
There are now modern devices available which fit into a
minimum space, catering to a
larger turn-down ratio without
tempering the pipe geometry.
These units no longer have
suspended nozzles, but instead have jets located along
the periphery of the Desuperheater wall .
A probe type unit is also available which fits onto any steam
line and is capable of catering
to large turn-down ratios.

www.kci-world.com/kci-events
Variable Spay Desuperheater

May 2016

Valve World India

In simplified steam conditioning valves today, the majority


of the components used are
the same as that of a standard
control valve with a spraying
unit located at the point of

for the paper machine could


achieve savings of Rs 7500/day
(in 2010). This Desuperheater fed steam into the paper
machine using the same condensate that came out of the
paper machine. The payback
period for the Desuperheater
was just 20 days.
The second example is a sugar
plant where the exhaust steam
from the turbine was used
for the boiling house vessel
where sugar was in liquefied
state. Due to the highly variable steam load, massecuite (a
suspension of sugar crystals in

Steam Conditioning Valve

highest turbulence and at the


exit of valve. This minimizes
the risk of pitting within the
valve body due to water injection.
The cost benefits of Desuperheating technology are illustrated in the following case
studies.
The first application was at a
35 MW co-generation power
plant located at a paper plant
producing writing, printing
and newsprint papers. The
study showed that installing a
variable spray Desuperheater

a liquor after boiling), would


caramelize due to uneven
heating in the vessel. To cater
to the large amounts of highly varying steam a carefully
designed Desuperheating unit
was supplied which successfully resulted in even heating
and thereby solved the issue.

About the author


Raju Mistry has spent 35
years in the desuperheater and valve industry.
During his career he has
worked with globe control
valves, rotary control and
over-sized spring loaded
low pressure safety valves.
He has experience in the
oil & gas, power, sugar,
paper & pulp and chemical applications and can
be contacted at: rmistry@
mascotvalves.com.

TECHNICAL INSIGHT

DESUPERHEATING

The Heart of an Effective


Steam Conditioning System
C. Manikandan, Chemtrols
Industries Ltd, Mumbai, India
Steam is widely used in various processes as a heating or
drying medium and is usually
generated at high pressures
and temperature, in industrial
applications. As per thermodynamics, water boils and transforms into steam at a constant
temperature for any given
pressure. The temperature and
amount of energy required
for this evaporation is directly
related to the pressure. In the
same way, for condensation
of steam to liquid at any pressure, the amount of energy
released, is the same as would
have been required to evaporate water at that temperature.
The energy required for the
change of phase from water to
steam or viceversa is considerable.
Superheated steam is an excellent source of energy, but for
certain applications saturated
steam, or steam with little
superheat, can do the job best.
If the steam is delivered in a
highly superheated state, the
temperature must be reduced
to an acceptable value pertaining to the process requirements.
However, the energy required
to heat steam i.e. to superheat or to cool steam i.e. to
desuperheat is substantially
less than what is needed for
evaporation/condensation. The
advantage of desuperheating
steam for many process applications is due to the requirement of saturated steam conditions, which is most efficient
for heating purpose.
Steam is desuperheated by
injecting water by way of fine
spraying/atomization into
steam.
In the process, water evaporates and finely mixes with
steam. If we can efficiently
inject the correct quantity of
water, steam can be brought

close to saturation level. The


selection of a correct desuperheater, installation and its
integration into the control
loop will have a major impact
on the efficiency of the system, and hence it is called the
heart of a steam conditioning
system. The major factors to
be considered for an effective
and efficient desuperheating
system are:
Method of water injection.
Type of desuperheater nozzle.
Turn down ratio of the system.
Spray water pressure and
temperature.
Right material (MOC.)
Pressure drop in the system.
Mechanical installation in
view of maintenance point.
Temperature sensor location.
In situations where only
cooling of steam is required,
without pressure reduction, a
Desuperheater is used. But
when pressure reduction of
the steam is required along
with cooling, then a Pressure
Reducing and Desuperheating
Station (PRDS) is used. For
optimal controllability and
rangeability, combined PRDS
valves are preferred due to
their many advantages, higher
rangeability and exactness.
DeSuperheater can be classified into two:
a) Non-Integral type desuperheater: where the desuperheater nozzle and water
valve are separate units.
b) Integral type desuperheater:
where the desuperheater is
in-built with an actuator so
that there is no need of a
separate spray water valve.
Most of the desuperheaters
inject water through several
small holes or nozzles, into
the path of the high velocity
steam, where the water is
atomized into small water
droplets and quickly evaporated with the carrier.

DeSuperheater nozzles are also


classified into :
a) V
 enturi type: where the
nozzle orifice is fixed irrespective of flow variation.
b) V
 ariable orifice: where the
orifice area opening will
vary according to the flow
and pressure variations.
A typical system will appear
like the picture given below:

PRDS &
DeSuperheaters
PRDS: Pressure Reducing and
desuperheating system.
Steam PRDS is used for steam
conditioning services for
reduction of pressure and
temperature of steam. It is a
combination of control valves
for the pressure reduction
purpose and atomizing nozzles
desuperheater, through which
water is sprayed into steam for
reducing the temperature.
PRDS can be of two types:
a) C ombined PRDS: Both PRV(Pressure Reducing Valve)
and desuperheater in a
compact single unit.
b) S plit PRDS: separate PRV
and desuperheater.
Combined PRDS will help to
save the space and also cost
of piping, as the unit is single
and compact. For PRDS control
system, there will be one pressure loop and one temperature
loop. The pressure control
system includes a pressure
sensor, pressure transmitter,
controller, I/P converter, and
pressure gauges, etc. The
temperature control system
includes a temperature sensor,
a temperature transmitter, a
controller, an I/P converter, and
temperature gauges, etc. The
spray water quantity required

for the temperature reduction


of the steam is controlled by a
separate spray water valve.
For PRDS applications, the
desuperheater can be either
integrated along with a Pressure Reducing Valve (PRV) or
separately after the PRV. A very
efficient mixing of liquid and
gas phase can be attained if
the desuperheater is integrated
along with the PRV outlet. The

optimal position to inject water


is the outlet of the PRV where
the most turbulent condition
exists, which results in better
and efficient mixing of water
with steam. The velocity immediately after the pressure
reduction will also be higher
compared to downstream and
when the steam hits the water
droplets at high speed, evaporation of water particles take
place faster. The high velocity steam jet also creates an
atomiser effect, since it creates
a resulting drag force which
disturbs and breaks water into
fine droplets. All modern PRDS
valves have a silencer (diffuser) as an integral part of the
valve to take care of noise and
no separate /external diffuser
plates are required.
A typical split PRDS system is
shown below.

It is always better to use combined PRDS in case of short


distance to bends and temperature sensor is required. The
cost of piping & bends, space
availability, straight lengths
requirements, etc. are to be
kept in consideration in the
selection of the steam conditioning valve.
The selection of a proper desuperheater and a PRDS system
is critical to the engineering
of a proper steam conditioning system. Broadly speaking,
a good engineered solution
should offer the following advantages, to the user:
Ensure low total life-cycle
costs for steam conditioning
systems.
Should hold various statutory
certifications, like IBR in India or PED as in the case of
Europe.
Deliver steam in a superheated state at the desired
temperature and pressure
conditions. i.e.: precise temperature and pressure control
at the outlet.
A better atomization and
proper mixing.
A negligible pressure drop.
No thermal stress & shocks
to the steam pipe
Keep the distance of the temperature sensing device ,from
the point of water injection
as low as possible. (The distance from the desuperheater
beyond which successive
readings agree is the closest
point at which the valid temperature measurement can
be made).
Avoid spray hitting the pipe
wall.
O/L quality of the steam
should be good i.e. homogeneous and with no condensate.

W
 ater injection droplets
should be controlled at less
than 200 microns.
T he selection of right MOC at
the desuperheating point as
per ASME standards.
A
 void water hammering and
vibrations.
S afety first with all weld
joints radiographed/ diepenetration tested.
A
 design such that the steam
velocity is within limits,
which is usually < 60 m/s
N
 oise level within limits. Typical values being < 85 db.
T ake care of straight runs.
U
 se right and effective desuperheating technology to
optimize the water injection
quantity and mixing.
S elect an appropriate steam
atomizing nozzle.

About Chemtrols
Chemtrols is a leading
solutions provider Steam
Engineering Solutions, and
caters to various industries like Power, Steel, Oil
& Gas, Fertilizer, Chemicals & Petrochemicals
etc. With offices in all the
major cities in India and
a presence in the UAE,
they have an an extensive
reach across markets. A
state-of-the-art manufacturing unit in Goa, quality
certifications conforming
to most Global standards,
and a team of some of
the brightest engineers
and sales & marketing
personnel in the industry,
makes Chemtrols a force
to reckon with in delivering Steam Conditioning
Systems.
Other Steam Engineering
Solutions:
- Desuperheaters
- Pressure reduction and
desuperheaters PRDS
- Turbine bypass valves
- Control valves for severe
services

Valve World India

May 2016

EPC INTERVIEW

In 2015, Engineers India Limited (EIL) celebrated 50 years of existence in the Indian
market. As an engineering consultancy company, it has not only strengthened
its expertise across the hydrocarbon value chain, but also diversified into
high growth areas such as power, fertilizer, LNG, water and waste treatment,
infrastructure, and metallurgy industries. Today, EIL is providing services from
concept to commissioning covering project implementation, turnkey contracts and
additional specialist services. In a candid interview with Valve World India, Ms. R.
Priyamvada, General Manager, Electrical & Instrumentation, shares her insights
into the companys focus areas and core strengths.

EIL Excellence
in Engineering
Last year saw EIL mark its fiftieth anniversary
as a total solutions engineering consultancy
and EPC company. Of course, the business
climate has changed tremendously during the
past fifty years, yet EIL has shown itself well
capable of responding to new challenges and
in doing so has developed a strong presence
on the global map. Indeed, EIL is proud to
offer a complete suite of engineering solutions
under a single roof. Competitive technology
along with in-house and collaborative R&D
underpin EILs competitive edge.
To obtain a deeper insight into the companys
illustrious past and explore how it is forging
ahead in this competitive market, Valve World
India visited EILs Research & Development
Centre at Gurgaon to meet Ms. Priyamvada.
She kicked off the discussion by sharing the
story behind the formation of EIL way back in
1965.
The company was formed by the Indian
government in partnership with Bechtel. After
Bechtel exited the business, EIL became an incorporated company and was referred to as a
Public Sector Enterprise. Since then, there has
been no looking back, said Ms. Priyamvada.
She is quick to point out that the core
strength of EIL is customer retention. Both
private as well as public sector customers
keep coming back to EIL for the exclusive and
home-grown engineering services offered.
Our other major strength is skilled manpower. Our engineering strength is around 2,700
highly-qualified personnel having expertise
across all domains. They are instrumental in
providing a complete range of services required to conceptualise, design, engineer and
construct projects to meet the specific needs
of our clients. Our association with clients
extends beyond the commissioning of their
plants through monitoring operation of each
plant and accumulating feedback on performance.
While the company has grown its presence
in the domestic market, it has also expanded
its footprint across the world. Today, it has a
strong presence in the Middle East, Africa and
South East Asia region, including Abu Dhabi,
Algeria and Nigeria. Besides, it has opened
procurement and inspection offices in Milan,
London, and Shanghai.
Ms. Priyamvada further stated, We are facing
stiff competition from both local as well as
international players in India. But we do have
our strengths in place. We understand the

10

May 2016

Valve World India

Indian market requirements much better than


other EPC companies operating in this country.
And it is precisely because all our end user
clients put such trust in us that we have been
able to consolidate our business position for
so many decades. Our strength lies in our
core engineering and technology competence.
Today, we provide home-grown and proven
services to our customers.

Procurement process
As an engineering and EPC company, EIL is
proud of the fact that it can offer a complete
procurement service as part of project implementation to its clients. Moreover, being a
government organization it has a very robust
procurement process in place and always
strictly follows all government norms and
guidelines.
Ms. Priyamvada explained, From the very
beginning, EIL has focused on encouraging
and developing reliable sources of supply with
special emphasis on development of indigenous suppliers. In the earlier days, most of
the items and materials were imported. But
now due to the pioneering efforts of EIL, over
90% of items are sourced from India. EIL platform also encourages inclusive participation of
foreign suppliers. Thanks to vendor empowerment, we see that all players want to be on
EILs Master Vendor List (MVL).

Our strength lies in

the core engineering and


technology competence.
Today, we provide

home-grown and proven

services to our customers

EIL enlists vendors on the basis of a stringent


capability assessment. Since the company
follows the method of public procurement, the
specifications are shared and enlisted vendors
are invited to bid. After careful assessment of
the quotation, the orders are placed with an
emphasis on schedule, service, quality, and
technical acceptability.
Our MVL is shared with the end-users and,
based on their experience and feedback,

a vendor list is considered for each job,


commented Ms. Priyamvada. Its a mutual
consent among all the parties involved in the
project. All our suppliers do meet the quality
norms and service requirements and that has
been one of reasons why our MVL is so successful. Indeed, our MVL is widely referred to
and internationally recognized, as we follow
a very transparent and clearly established
procedure to assess the qualities as well as
capabilities of the vendors. For example, before enlisting a valve supplier, we do shop
and capability assessments, end-to-end supply chain management assessment, etc. The
vendors who are enlisted in EIL are accepted
not only in India but also in the international
market.

Focus on valves
According to Ms. Priyamvada, valves play a
very critical role in any sector be it power,
oil and gas, hydrocarbons or metallurgy. In
fact, valves act as a significant component
in any project execution. For example, in a
typical refinery complex there may be a requirement for over 200,000 valves, including
specialized valves, valves for high pressure
and temperature, thermal cyclic valves, automated valves, etc. Here, the valve spectrum is
very large. Hence, it is absolutely true to state

Recent Milestone Projects in Other Areas:


Segment

Project

Refineries
Dangote Refinery and Petrochemical

Project at Lekki Free Trade Zone, Nigeria


Integrated Refinery Expansion Project at Kochi

Petrochemicals
Petrochemical Complex-II at Vijaipur & Pata


Dual feed Petrochemical Complex at Dahej


Liwa Plastics Project in Sohar, Oman


Pipelines
36"-18" Dia., 1300 km Dabhol - Bangalore Gas Pipeline Project

Oil & Gas Processing Deen Dayal Field Development Project & Onshore Gas Terminal at Kakinada

Strategic Storages
Strategic Crude Oil Storage in underground rock caverns at Vizag,

Mangalore and Padur

Infrastructure
Atal Mission for Rejuvenation and Urban Transformation

Client
Dangote Oil Refinery Company
Bharat Petroleum Corporation Ltd.
GAIL (India) Ltd.
ONGC Petro-additions Ltd.
Oman Refineries and Petroleum
Industries Company (Orpic)
GAIL (India) Ltd.
Gujarat State Petroleum Corporation Ltd.
Indian Strategic Petroleum Reserves Ltd. (ISPRL)
Government of India

EPC INTERVIEW

Projects successfully completed


by EIL in Power sector:
Nuclear

that valves are one of the most important


components that determine the schedule of
the overall project.
She continued, As an engineering company,
we place a very high focus on valves. We
follow different strategies for different jobs.
First, assessment is made based on the project schedule and the overall requirement of
valves. Then valves are categorized according
to the types and delivery, and procured to
meet the schedules. For us, valves are not
just the mechanical piece of items but the
foot soldiers of plant operation. They are in
the front-end and determine the operation
and safety of the plant. Hence, maximum
emphasis is also imparted during engineering
for selection, sizing of valves to suit the specified service conditions. For example, if you
consider the automated valves, they really do
determine the entire operation and safety of
the plant. If the valves work properly, then the
whole operation of the plant throughout its
lifecycle will be smooth.
Listening further to Ms. Priyamvada, it becomes quite clear that EIL does not believe in
rubber stamping previous choices when it
comes to valve selection. Of course, wherever
feasible EIL looks to standardize the procurement process for valves. Besides, our experience helps in classifying the different types
of valves and working out which valve should
perform best in each application. But still for
any engineer, every new plant demands careful analysis to identify the right valve for the
right service. Valves are not standard products
but have to be crafted to suit the application,
she added.
Ms. Priyamvada continued by stating, We
are also very conscious about environmental
issues. Hence, we place a lot of emphasis on
the materials for the body, the internals, the
packings, etc., to minimize leakages and meet
emission norms. Since we are an engineering
company with a lot of credentials, our clients
place a lot of trust in us. In every job, we
carefully discuss the end users requirements
and expectations to evolve a basic consensus
on the valves to be used. We also incorporate
end user feedback into our specifications.
With automation being bench mark for effective and safe operation of plants, special emphasis is given for automated valves in process industry, wherein more and more manual
valves are being replaced with automated
ones. Keeping in pace with technological evo-

lution brought in by digital era, EIL is quick to


adopt digital communication for valve actuation through SMART and FIELD BUS technologies. Fully digital, these automated valves can
be readily integrated into the plants control
systems and also boast asset management
tools. This means that valve performance can
be monitored from the control room, hence
facilitating predictive maintenance all helping to raise the integrity of the plant, enhance
safety, and reduce maintenance costs.

Moreover, EIL has earned a reputation of being


a veritable treasure chest of technical knowledge, skills and professional competence. In
the course of setting up various projects, EIL
has worked with a large number of process
licensors and engineering/ contracting companies worldwide and is well versed with the
engineering codes and practices followed internationally.
Ms. Priyamvada is therefore extremely confident about EILs future growth. For example,
we have demonstrated that we can leverage our core competencies and successfully
venture into additional markets, such as the
power sector, infrastructure, water, and waste
management. And we have demonstrated
our capabilities in delivering value added
solutions. As to the future, we are planning
on venturing into the Operations and Maintenance (O&M) business and there are also
opportunities in new regions of the world.
For example, EIL is looking to grow in the
CIS (Commonwealth of Independent States)
countries, where we are seeking to identify
markets where we can provide cost and operational advantages to the end customers and
distinguish ourselves from other competitors.
This is an as yet untapped market for EIL and

C ooling Water and Heat Recovery


Systems for ITER (International
Thermonuclear Experimental Reactor)
N
 PCILs Nuclear Power Project at
Mithivirdi

Thermal
C aptive Power Plants for various clients
R
 elocation of 300MW Gas based Power
Plant

Renewable
P ower Block for 125 MW Solar Thermal
Power Project of Reliance (ADAG)
awarded by AREVA
5 MW Solar PV Power Project under the
National Solar Mission

there are some exciting opportunities for us


to work on both green field and brown field
jobs like expansions and upgradations. There
will always be plenty of opportunities for a
dynamic, flexible company like EIL, concludes
Ms. Priyamvada.

Projects undertaken
Asked about EILs track record, Mrs Priyamvada
proudly stated that during the past fifty years
the company has completed more than 5,000
assignments including over 400 major projects
which are all operating smoothly (see box for
some headline projects in various sectors).
In many cases, plants continue to operate at
levels initial rated capacity or above, creating
an array of satisfied clients. Commented Ms.
Priyamvada, This is just another reason why
EIL has been able to secure so much repeat
business from clients and is a clear sign of
the clients satisfaction, confidence and trust
reposed in EIL.

Our MVL is widely


referred to and

internationally recognized,
as we follow a very

transparent and clearly

AUMA India is the Leader in the field of Electric Actuators and Valve Gearboxes for the
automation of Industrial valves and dampers in the country. Be it power, nuclear, water,
petroleum, cement or steel, chemicals, fertilizer, AUMA India actuators are at work
behind the scenes, controlling some of the most critical processes in the industry.

established procedure
to assess the qualities as

well as capabilities of the


vendors

Valve World India

May 2016

11

PLANTS & PROJECTS

Veolia wins Petrofac contract


in Oman

The agreement will see Veolia


support the engineering and
supply of water treatment
systems for the Rabab Harweel Integrated Project (RHIP)
in the south of Oman, which
Petrofac is managing on behalf of Petroleum Development Oman (PDO).
The RHIP facility includes sour
gas processing facilities as
well as associated gathering
and injection systems, and export pipelines. It handles the
production of oil and gas from
the Harweel oil reservoirs via
Miscible Gas Injection and the
production of gas with condensate from the Rabab reser-

voir through partial recycling


of sour gas. Veolias scope
will be to provide treated water for different applications
including boiler feed, potable
water and service water.
Vincent Baujat, Veolia Water Technologies Executive
Vice-President for the Middle
East, said: Veolia has now
become a trusted partner for
the oil and gas industry in
Oman, having also provided
water treatment solutions to
other national and international oil companies there.
Veolia is very pleased to now
be working with Petrofac, a
globally respected EPC Con-

tractor, bringing our international expertise and local Omani knowledge.


Ray Richardson, Country Manager for Petrofac in Oman,
said: The Rabab Harweel Integrated Project is very important for Petrofac as it underpins our strategy to enhance
service capability in Oman.
Partnering with Veolia for water treatment is in line with
our commitment to build local alliances and in doing so
bring a strong and enduring
team working alongside PDO
to deliver this project.
Veolia offers integrated solutions for the management
of water and waste for the
oil and gas industry. With
its proprietary technologies,
the company has an unchallenged expertise and technologies for the optimization of
the processing chain and can
handle almost any effluent
to achieve the desired water
quality levels for its clients.
Veolia also offers sophisticated technologies and robotics
for tank cleaning of refineries
and petrochemicals, and hazardous waste management.

Wrtsil supplies 70 MW power


plant to state utility in India

Wrtsil will supply a 70 MW


Smart Power Generation plant
to Assam Power Generation
Corporation Ltd. (APGCL) in
north-eastern India. The order
includes seven Wrtsil 34SG
engines running on natural
gas. The letter of award was
issued in December 2015, and
the power plant, delivered on
a turn-key basis, is expected
to be operational by March
2018.
APGCL plans to replace outdated gas turbine units with
Wrtsil technology. When
gas is scarce, the plant needs
to be run at part-load. Wrtsil engines can do this while
maintaining very high efficiency. According to APGCL, this
would not be possible with
gas turbines. By absorbing the
variations in the gas supply,

Wrtsil engines enable APGCL to produce more efficient


power from the same amount
of fuel without affecting the
heat rate.
Initially, the power station
will operate on an open cycle
mode, but APGCL has the option of converting it to a combined cycle plant by installing
waste heat recovery units. The
modularity of Wrtsil power
plants also allows the customer to easily expand the power
plant with more engines to
meet future demand.
Currently, a major portion of
the electricity is imported into
Assam from outside of the
state. The new power plant
will increase the regions energy independency and help to
meet its increasing electricity
demand. According to a social

responsibility report by APGCL, the project will also provide the local population with
better access to electricity. A
reliable power supply will also
benefit the areas hospitals,
schools and other social services. The project is financed
by the Asian Development
Bank as part of an investment
programme for the energy infrastructure in Assam.
This project will further
strengthen Wrtsils position
in the utility power market in
India that is looking for gasbased solutions, says Partha
Paul, Business Development
Manager at Wrtsil.
Wrtsil has an installed capacity of 4000 MW in India,
and globally 60 GW in 176
countries.

ONGC approves USD 5 billion FDP

The Board of Directors of ONGC


have approved the Field Development Plan (FDP) for the development of fields falling under Cluster 2 of the Deep-water NELP Block KG-DWN-98/2.
The development would involve a capital expenditure of
around USD 5 billion.
Cluster 2 of the Block has
been divided into two parts (i)
Cluster 2A which has estimated In-place reserves of 94.26
MMt (million tonnes) of crude
oil and 21.75 BCM (billion cubic metres) of associated gas;
and (ii) Cluster 2B which has
estimated In-place reserves of
free gas of 51.98 BCM. Production is envisaged at a peak oil
rate of 77,305 bopd and 3.81
MMSCMD of associated gas

12

May 2016

Valve World India

through 15 producer wells


along with 12 water injection
wells with a peak water injection rate of 9,400 m3/d from
Cluster 2A oil fields. Peak
production rate of free gas is
envisaged at 12.75 MMSCMD
from 8 wells of Cluster-2B free
gas fields. Total oil and gas
production envisaged is 23.526
MMt and 50.706 BCM respectively during the project life
from the Cluster 2. The peak
daily production rate from the
Cluster 2 works out to 16.89%
and 27.60% of ONGCs current
production rate of crude oil
and natural gas respectively.
The facilities envisaged as
part of the project include a
gas process platform (with a
bridge-connected platform for

living quarters) to process gas


from the free gas wells, an
FPSO for processing, storage
and evacuation of oil and gas
from Cluster 2A fields, about
430 km of sub-sea pipelines
of various sizes from 6 to
22, about 151 km of umbilical lines and 10 manifolds,
riser base manifolds and an
onshore gas handling terminal. In addition, the drilling
and completion of 35 wells (15
oil producers, 12 water injection and 8 free gas producers)
have been planned.
The project envisages first gas
to be produced by June 2019,
first oil by March 2020, with
overall completion in June
2020.

PLANTS & PROJECTS


L&T
Hydrocarbon
Engineering wins
PDO Oman
orders

L&T Hydrocarbon Engineering


(LTHE), a wholly owned subsidiary of Larsen & Toubro Ltd. India, has won two orders valued
at approximately USD 370 million
from Petroleum Development
Oman LLC (PDO). The new order
wins include engineering, procurement and construction of the
Saih Nihaydah Depletion Compression Phase 2 (SNDC2) and
Kauther Depletion Compression
Phase 2 (KDC2) projects.
Petroleum Development Oman
is the foremost exploration and
production company in the Sultanate of Oman. It accounts for
more than 70% of the countrys
crude-oil production and nearly
all of its natural-gas supply. The
company is owned by the Government of Oman (which has a
60% interest), Royal Dutch Shell
(34%), Total (4%) and Partex
(2%).
The Saih Nihaydah Field is located in the central Oman area. The
field has been producing via the
Saih Nihaydah Gas Plant (SNGP)
which was commissioned in
2005. The Kauther Gas Plant (KGP)
is located approximately 120 Km
from Saih Rawl-CPP, Oman.
These projects are being implemented to overcome pressure
depletion and maintain potential in order to sustain production. LTHE has already executed
three projects for PDO, namely
the Lekhwair Gas Field Development Project (around USD 150
million), the Saih Rawl Depletion
Compression Project (SRDC2, for
some USD 235 million), and the
Yibal 3rd Stage Depletion Compression (Y3DC, for approximately USD 240 million).
Larsen & Toubro is an Indian multinational engaged in technology,
engineering, construction, manufacturing and financial services
with over USD 15 billion in revenue. It operates in over 30 countries worldwide.

ValvTechnologies expands
to meet demand

ValvTechnologies, manufacturer of zero-leakage severe service isolation valve


solutions, has announced that its ISO
9001:2008 certified assembly and global
sourcing facility located in Chennai, India,
has commenced additional assembly of
engineered metal seated ball valves and
enhanced valve automation capabilities,
as well as launched a full-fledged service
center which includes on-site service capabilities.
ValvTechnologies Private Limited, an assembly and global sourcing facility located
in Chennai, India, opened in 2013 to meet
the growing demand for ValvTechnologies
high-performance metal seated ball valves
and to help reduce logistics costs for customers in the Middle East, Asia and Australia.
Based on the current demand from the
Middle East, Asia Pacific and Australasian
markets, ValvTechnologies Private Limited
has also initiated ambitious plans to begin manufacturing electronic relief valves
in India. The quality of our products and

services will be equal to similar products


and services manufactured and available at
our Houston, USA, manufacturing facility,
assures Managing Director Paul Isaac.
The India center will utilize the large supply chain base, skilled technical talent pool
and lower cost economies available in the
region. This center is planned to be an ideal
support to the customers in the region and
would increase the competitiveness in the
markets it addresses.
Additional service capabilities include valve
and actuator repair as well as ValvPerformance Testing, ValvTechnologies innovative cycle isolation measurement program. The team recently completed their
first commissioning job outside of India:
this was a major milestone and shows the
confidence the organization has in their
abilities. The team is focused on working
with distributors to better service customers in the Middle East, Asia Pacific and Australasian markets and expects to continue
taking on a greater role in servicing customers in these important regions.

Investments by HPCL

State-owned
Hindustan
Petroleum Corp Ltd (HPCL)
plans to invest heavily into
expansion of various refineries and its marketing
infrastructure to the year
2020.
Rs 9,000 crore has been
earmarked for augmentation of the companys
marketing infrastructure,
whilst Rs 21,000 crore will
finance the capacity expansion of its Mumbai and
Visakhapatnam refineries.
Joint venture refinery pro-

jects, natural gas business


and upstream oil exploration will be allotted a total
of Rs 14,000 crore, according to an investor presentation by HPCL.
The capacity of the Mumbai
refinery will be increased
from its current 6.5 million
tonnes per annum to 9.5
MTPA and the Visakhaptnam refinery will increase
capacity from 8.3 MTPA to
15 MTPA. The investments
will also help in products
conform to Euro V/VI emission specification.

A further USD 350 million


investment is planned in
order to raise the capacity of the Bhatinda refinery
in Punjab from 9 MTPA to
11.25 to cope with the increase in demand in northern India, said HPCL, who
are equal partners with
Lakshmi N Mittal in the
Bhatinda refinery.
The company will also
be involved, with Mumbai-based
infrastructure
major, Shapoorji Pallonji, in
the setting up of a 5 MTPA
LNG import terminal at the
port of Chhara in Gujarat.
This project will cost Rs
5,411 crore. HPCL holds a
50% stake in this project,
the remaining 50% being
held by SP Ports Pvt Ltd,
a unit of Shapoorji Pallonji
Group.

Valve World India

May 2016

13

COUNTRY & MARKET FOCUS


The indian valve market is rapidely transforming itself. Currently experiencing rapid growth and
rising domestic demand, the industry has rejuventated both its product capabilities and capacity
over the past decade to become a major global force. This article looks at the achievements to date
and where potential lies for expansion during the coming years.
By Industrial Automation & Process Control Practice, Frost & Sullivan

Future of the Indian Valves Market


The Indian Valves Industry has
seen significant growth over
past decade, successfully catering to the rising domestic
demand in terms of capacity
and product capability, while
also establishing itself as a
dominant force in the global
valves market. The country
has developed an ecosystem
for valves manufacturing,
which has led to major global
companies setting up operations in the country. With
initiatives being rolled out to
foster manufacturing in the
country and major projects
announced to spur growth,
India is in the limelight for its
manufacturing capabilities and
as a major market for valves.
Indian Valves manufacturers,
who are eager to expand globally, and global companies
trying to tap into the resources
available in the country to use
it also as an R&D and sourcing
hub apart from catering to
the domestic market sets the
stage for the next round of
growth in the sector.

Indian Valves Market


Outlook
The Indian Industrial Valves
market was estimated at INR
10,100 Cr for 2014-15. Isolation valves (also called On-Off
valves) account for majority of
the demand in the Indian market, followed by control valves.
The contribution of control
valves will increase in the
coming years with new regulations on safety and the rising
importance of continuous
monitoring. Supply of severe
service and other specially
engineered valves in India is
lesser than the global average
due to lack of off-shore drill-

ing and exploration activities.


However, there is a steady
progress in development and
manufacturing of valves for
super-critical power plants and
nuclear power plants.
The oil and gas (O&G) industry
constitutes majority of the
demand for valves in the Indian market, with most valves
being consumed by the O&G
downstream sector. Majority of
the valves exported also cater
to the global O&G downstream
sector. The demand for valves
in the power generation industry has not reached its full potential due to slower execution
of projects in the sector. The
Water and Wastewater Industry
in India has been witnessing
significant growth over the
last 5 years and the demand
for valves in this industry will
continue to rise. Supply of
valves to process industries
such as sugar, paper and pulp,
and metals and mining has
been slack due to the lack in
pace of expansion activities in
these sectors. The demand for
valves in pipelines for crude
and LNG transportation will
witness a huge demand as
a robust pipeline network is
being laid throughout India.

Competitive Scenario
The Indian industrial valves
market is highly fragmented
with close to 600 companies
supplying valves. However,
the industry is set for consolidation as large multinational
valve suppliers are in the
process of acquiring smaller
companies to exploit the latters strong distribution and
supply chain network. The
increasing market participation
has a direct impact on the

Exhibit 1: Product Segmentation of the Indian Valves Market, 2014-15

Source: Frost & Sullivan Analysis

14

May 2016

Valve World India

Exhibit 2: End-user Segmentation of the Indian Valves Market, 2014-15

through the similar model.


Public and Private sector investments, to increase the
import capacity of LNG and to
develop integrated pipeline
network, will create a substantial demand for valves.
Chemical and Fertilizers
Positive developments in Indias negotiations with Qatar
and Iran for liquefied natural
gas (LNG) will compensate the
shortage of natural gas needed
by fertilizer manufacturers.

Source: Frost & Sullivan Analysis

margins of the manufacturers.


Frost & Sullivan estimates the
market is likely to witness a
compound annual growth rate
(CAGR) of around 6 percent
from 2015 to 2020.
Indian valve manufacturers
have slowly and steadily progressed into supplying valves
to the global market and have
achieved a significant amount
of success. Indian valve manufacturers have started expanding their footprint across the
globe and are expected to play
a huge role in establishing a
global supply network.

Policy Support and


User Dynamics
With an aim to increase the
share of the manufacturing
sector to the countrys GDP,
the Government has come up
with policies that will enhance
the value of Indian manufacturing. The Indian valves business will not only benefit from
manufacturing related initia-

tives but also from the policies


created to smoothen execution
of major projects and create
phased urbanization.
The Namami Ganga Program
aims to invest INR 20,000 Cr
over the next five years to
conserve the Ganga. Sewage
treatment plants are to be set
up along the course of the river; industrial water treatment
for plants along the river will
become a necessity. The Indian
Government plans to develop
100 Smart Cities with integrated water treatment and distribution, and power and waste
management solutions, which
will further spur the demand
for valves and advanced control solutions.
India has been trying to reduce its dependence on fossil
fuels, for which there has
been a large-scale emphasis
on solar power generation.
Stage 2 of the Jawaharlal Nehru National Solar Mission aims
to produce 20,000 MW of grid
connected solar power. Concentrated solar power plants
provide significant opportunity
for valve suppliers. An investment of INR 80,000 Cr is envisaged to upgrade refineries in
order to comply with the Euro
VI equivalent emission norms
by 2020, which will create a
huge demand for efficient
valve systems and valves with
advanced material chemistry.
The Make-in-India initiative
will facilitate easier set-up and
expansion of valve manufacturing. Single-window clearances and quicker registration
processes are some of the
features that will help foreign

companies to set up their


operations in India. Common
taxation regime (Goods and
Services Tax) would even out
the variation in taxes across
geographies and products and
would create a level playing
field for valve manufacturers.
New schemes and an initial
budget allocation of INR 100.00
Cr announced in the Indian
Union Budget FY2015 for ultra-modern, super critical,
coal-based thermal power
plants to promote cleaner
and more efficient power
plants will be a huge driver
for valves used in the power
sector. Regulations to rationalize coal linkages to optimize
coal transport and to enhance
coal availability and stringent
mechanism for quality control
to increase the usage of domestic coal to reduce overall
cost are being implemented to
make the power sector more
attractive. Development of
Ultra Mega Power Project is
planned by the Government
of India to bridge the power
supply and demand gap. Major
plans by Nuclear Power Corporation of India Limited (NPCIL)
to augment the nuclear power
generation capacity of the
country are underway through
collaborative efforts with foreign reactor suppliers.
Oil and Gas
The recent successful commissioning of Bharat Oman
Refineries Limited (BORL) and
HPCL-Mittal Energy Limited
(HMEL) has influenced the
state-owned refineries to
invest in better technology

Water and Wastewater


Steps to introduce desalination as a source of domestic
water supply and as an input
for Power plants and O&G
installations along the coast,
increased activity on distribution, and growing significance
of water treatment have
made this sector attractive
for valves. Efforts to implement integrated waste water
management solutions to
cap pollution and creation of
sustainable factories will also
increase the requirement of
valves for water treatment.

Impetus for Valves


Manufacturing
Attractiveness of Smart Manufacturing
Under the Make-in-India
initiative, the Government has
laid out new policy initiatives
that aspire to expand the
economys manufacturing footprint comprehensively. This
includes focus on an extensive
list of discrete industries for
growth in the coming years.
Some of the strategic goals
of this new program include
enhancing job opportunities,
minimizing imports, expanding
exports, and creating a conducive environment for Industry
4.0. The objective of this initiative is to create Smart Factories. If companies and value
chain participants appreciate
the benefits of this new revolution and adapt to the changes, then radical transformations in the competitive landscape can be expected. Smart
manufacturing enables remote
management of the supply
chain, thereby dedicating
lesser resources in logistics.
Quality systems are bound to
improve with proper review
of outputs at the supplier
and sub-supplier levels. As a

COUNTRY & MARKET FOCUS


Exhibit 3: The Internet of Industrial Things, Global, 2014-15

result of incorporating these


systems, tractability and documentation improves. Smart
Factories help in effective
inventory management across
manufacturing locations. Management of the distribution
system and stock control is
also positively influenced by
the implementation of Internet
of Things (IoT). Valve Servicing,
where components replacement and failure analysis can
be performed effectively, is
another area where there is a
significant improvement because of IoT implementation.
Increased Demand for Mission
Critical Valves
Low gas prices and increased
participation of Indian companies in off-shore drilling will
create a demand for high-end
subsea valves, which has
traditionally been imported
due to lower demand. NTPCs
advanced ultra-super critical
plant development along
with Indira Gandhi Centre for
Atomic Research IGCAR and
Bharat Heavy Electricals Limited (BHEL) is in its advanced
stage and will require Indian
manufacturers to work with
advanced materials, which can
handle the high pressure and
temperature requirements.

Burgeoning demand in the


Indian Food and Beverage
(F&B) and Pharmaceutical
industry will require special
process specific valves, which
the Indian manufacturers can
cater to by providing cost-effective import substitution.
Energy efficiency and safety,
which the core industries have
made a priority, will translate
to valves with advanced safety
and control systems.
Valves Manufacturing and
Sourcing Hub
Indian manufacturers have
started expanding their footprint across the globe and are
expected to play a huge role
in establishing a global supply
network. The manufacturers
are unable to expand rapidly
and improve their manufacturing capacity due to the
varying local demand cycle;
this can be offset by balancing
the production between export and local supply. Indias
export, which predominantly
concentrates on the Middle
East, has now started to shift
to Southeast Asia and Africa.
Major global companies have
set up operations in India
directly or through acquisition
of local companies to tap into
the countrys strong manu-

About Frost & Sullivan


Frost & Sullivans Industrial Automation & Process Control team closely monitors emerging market opportunities
in industrial automation, process control, and mechanical
power transmission to enable its clients have the competitive insights and market intelligence they need for sustainable growth.

Source: Frost & Sullivan Analysis

facturing capability, sourcing


network, and as an entry to
the Indian market.
India as a Global Supplier of
Valves
Indian Valve suppliers should
benchmark against major
global suppliers in terms of
manufacturing efficiency, product performance, and service
delivery to be considered by
the global EPCs. Valve suppliers should look beyond their
existing role of component
suppliers and provide endto-end solutions on product
design, installation, and operation. Effective project management by monitoring deadlines,
taking corrective actions, and
constant reporting helps the
manufacturers align to the
ultimate project progress.
Comprehensive documentation
and adopting latest quality
and technical standards are
key to being considered for
global projects. Suppliers need
to closely work on their compliance to the latest emission
and energy regulations to be
considered for global projects.

Indian manufacturers should


equip themselves with process knowledge and work
with the EPCs and equipment
suppliers on process optimization and troubleshooting.
Valve suppliers should look

beyond their existing role of


component suppliers and provide end-to-end solutions on
product design, installation,
and operation enabling them
to transform as solution providers. Manufacturers should

start to look at valve servicing


from renewed perspective
aiding transfer, initially to the
predictive maintenance model
and finally providing asset
management solutions.

Way Forward
The Indian valves market is in
its growth phase and, with
ample demand for valves,
it is imperative to focus on
increased R&D, enhance
quality of manufacturing,
and establish a robust supply
chain to sustain the momentum. Manufacturing of critical
valves and process-oriented
valves has been Indian manufacturers Achilles Heel,
which can be overcome by
investing on technology and
advanced manufacturing systems. Intense competition and
increasing number of players
is a sign that the Industry is
moving toward its next level of
growth.

Valve World India

May 2016

15

MARKET NEWS OIL & GAS


Looking at the oilfield
services market.
And at where the continued
growth will come from
during the coming years.

India Oilfield Services Market to


Grow at 4.2% during 20152020

By Mr. Vipul Tiwari, Research Consultant Oil & Gas Division, TechSci Research, India

The oilfield services involve


a wide range of services,
such as exploration, drilling,
production and completion.
These facilitate oil & gas
exploration and production
(E&P). Growing per capita
energy consumption, increasing oil prices, escalating oil &
gas exploration and production activities, and favourable
regulatory framework of the
country are some of the major factors fuelling growth
in the India oilfield services
market.
India, being a developing
country, is largely dependent
on crude oil imports to meet
its energy requirements.
Therefore, any fluctuation in
the crude oil prices will affect
the Indian economy. In order
to reduce the dependence
on crude oil imports, the

16

May 2016

Government of India (GoI) is


mulling a prolonged strategy
to increase E&P activities in
India by positive policy action
like auctioning marginal and
small fields. Escalating E&P
activities will lead to increase
in the demand for oilfield services in India.
An increase in per capita
energy consumption implies
a growing demand for oil &
gas, which is anticipated to
be addressed by the rise in
number of E&P activities,
thereby driving growth in
India oilfield services market.
During 20152020, Indias GDP
is anticipated to increase on
account of growth across sectors like industrial, infrastructure and services, leading to
huge energy demand which
creates opportunities for oil
& gas exploration and pro-

Valve World India

duction. To facilitate increase


in oil & gas production, there
will be requirement for oilfield services in India.
India oilfield services are
broadly classified into onshore oilfield services and
offshore oilfield services,
on the basis of application.
Among these categories,
onshore oilfield services accounted for a revenue share
of more than 70% of the India
oilfield services market during 20102014. Owing to the
increasing number of onshore
rigs, which increased from
88 rigs in 2008 to 122 rigs in
2014, and their direct correlation with oilfield services,
the segment is anticipated to
maintain its dominance over
the next five years as well.
In India, the offshore oilfield
services market is also wit-

nessing substantial growth


on account of the increasing
number of offshore rigs owing to the growing number
of exploration wells being
drilled. ONGC is the leading
operator with the maximum
number of offshore rigs in
India. With ONGC further investing heavily in exploration
and production activities, the
market for offshore oilfield
services in India is anticipated to register healthy growth
during 20152020.
New Exploration & Licensing
Policy (NELP), which was formulated by the Government
of India in 199798, provides
equal opportunities to both
public and private players.
NELP help companies to
attract private and foreign
investments, thereby contributing to the growth of exploration and production market
in India. Moreover, 100% FDI
has been allowed in oil & gas
exploration activities, thereby
attracting more private participation and investments in
the sector.
Recent NELP rounds (VIII and
IX) are anticipated to give
a boost to exploration and
drilling activities in India,
with 34 and 19 blocks been
awarded, respectively. Under
9 NELP rounds, a total of 360
blocks were offered, out of
which 282 blocks were bid
but only 261 blocks were
awarded. Out of 261 blocks
awarded, Production Sharing
Contract (PSC) was signed for
254 blocks. With more blocks
coming under the Exploration
& Appraisal and Development
drilling phase in NELP VII to
IX, the India oilfield services
market is anticipated to grow
at a robust pace over the next
five years.

With each NELP round, more


and more investments are required so as to continue with
exploration and production
activities. Till NELP-6, 2007,
total exploration investment
commitment was USD8,388
million. However, the actual
exploration investment made
was USD13,394 million. Moreover, under NELP-7 to NELP-9,
total exploration investment
commitment was USD3,340
million, but the actual exploration investment made
was USD855 million. Thus, a
lot more investment needed
is needed to speed up the
exploration and production
activities in India.
During 20102014, the western
region dominated the oilfield
services market in India owing to increased levels of oil
& gas exploration and production activities in states like
Gujarat, Rajasthan, Madhya
Pradesh, and Maharashtra.
Around 7032 wells are located
in the Cambay basin in Gujarat, 362 wells in Rajasthan,
and 2654 wells on West coast.
With rising investments and
increasing drilling activities
in Mumbai High Fields by
ONGC, the Western region is
anticipated to maintain its
dominance in the India oilfield services market over the
next five years, says Karan
Chechi, Research Director,
TechSci Research.
In India, two public and thirty
private & joint venture oil
companies are engaged in the
exploration and production
(E&P) activities. Some of the
major private companies in
India dealing with oil & gas
exploration and production
are Essar Oil Ltd., Reliance
Industries Ltd. (RIL), Adani
Welspun Exploration Ltd.,

Cairn Energy India Pty Ltd.,


BHP Billiton Pty. Ltd., and
British Gas Exploration and
Production (India) Ltd. Investment plan of companies
like ONGC, OIL, and HOEC in
the public sector and RIL and
CAIRN India in private sector
will substantially push up the
value of oilfield field services.
In addition to this, the Governments decision to shift
from a Production Sharing
Contract to a Revenue Sharing
contract regime is anticipated to drive the India oilfield
services market over the next
five years.
Under a Revenue Sharing
model, the Government of India has decided to auction 69
idle oil & gas fields of stateowned ONGC and Oil India to
private companies.
ONGC and OIL are the major
players in the exploration and
production of the oil & gas
sector in India. In 2014, ONGC
accounted for 112 rigs, which
includes both onshore and
offshore rigs, while OIL had
only 15 rigs, including onshore as well as offshore drilling rigs. In FY14, ONGC made
14 new oil & gas discoveries.
Over the years, oil exploration
in India has increased, and
resulted in an increase in the
number of drilling activities.
Companies like ONGC and OIL
have intensified their E&P
activities focusing on longterm growth.
During the forecast period,
the rig count in India is anticipated to witness rapid
growth indicating an increase
in exploration and production
activities to reduce dependence on imports, thereby
positively influencing the
growth for India oilfield services market.

THROUGHOUT THE REGION INDIA

IFFCO posts
increased turnover
Indian Farmers Fertiliser Cooperative
Limited (IFFCO), Indias largest fertilizer cooperative, posted a 17.40% increase in turnover to Rs 29,000 crore
in 2015-2016, on the back of increased
sales. In the previous fiscal year turnover for the company was Rs 24,500
crore.
Overall, total fertilizer sales increased
to 130 lakh tonnes in 2015-2016 compared to
111 lakh tonnes in 2015-16. The total amount
includes 78.7 lakh tonnes of urea. IFFCO Managing Director Mr Awasthi attributed much of the
increase to increased efficiency in the company.
He further stated that IFFCO is keen to support
startups and has set aside a special fund valued
at Rs 10 crore. We are very keen to support new
ideas and proposals, preferably related to the
agriculture sector orother sectors.

The main entrance to IFFCOs Phulpur Unit.


Photo by Utkarshverma, Wikipedia

IFFCO has five fertilizer plants in India in Paradeep (Odisha), Kandla and Kalol (Gujarat), and
Phulpur and Aonla (Uttar Pradesh). IFFCO also
runs a sulphuric acid plant in Jordan which has
an annual capacity of 4.75 lakh tonnes and a
urea plant in Oman with an annual capacity of
16.5 lakh tonnes.

taka State (formerly Mysore) in


southern India. The consortium
members are Citigold Corporation Ltd and Pan India Network
Infravest Ltd (part of the giant
Essel Group conglomerate), collectively referred to as EGCITICO.
The purpose of the EGCITICO alliance is to acquire the assets
of BGML from the Government
of India, who had previously
operated the mines as a Public
Sector Undertaking.
The Kolar field produced 25 million ounces of gold over the last
150 years down to depths of
3,200 metres. A combination of
rock stress problems, inefficient
work practices and a low world
spot price for gold resulted in
the Indian Government mines
operator generally stopping
gold production in 2001.

Toyo Engineering Corporation has


been awarded a contract for a project
of Chambal Fertilisers and Chemicals
Limited (CFCL), a major private sector
fertilizer producer in India, to construct
a large-scale fertilizer complex in Kota,
Rajasthan. The complex will have an
ammonia plant with capacity of 2,200
t/d, and a urea plant with capacity of
4,000 t/d. For this project, the ammonia
production technologies of KBR, U.S.A.
and TOYOs urea synthesis technology ACES21 will be employed. Toyo-India has been independently awarded
contracts for onshore engineering, procurement and construction works for
the project. This is the second project
TOYO has received from CFCL and the
15th fertilizer project that the company
will construct in India since 1962.

Bodal Chemicals
expansion approved

Citigold to reopen gold mine


Citigold has signed a Memorandum of Understanding to
partner with a consortium to
acquire the assets of Bharat
Gold Mines Ltd. The assets principally comprise mining leases,
land and plant in the heart of
the Kolar Goldfield, located 80
km east of Bangalore in Karna-

TOYO awarded
fertilizer complex

Bodal Chemicals recently


announced
that it has
received environmental
clearance from
the Ministry
Of
Environment, Forests
and Climate
change to expand its dyes
and dyes intermediates manufacturing capacity
from 2,200 MTPM to 6,000 MTPM.
The expansion will take place at its
plant in Tehsil Padra, Gujarat.
Executive Director of Bodal Chemicals Mr Bhavin S. Patel stated that

with the approval in place, the


company will be able to upgrade
its manufacturing capacity at a very
low capital cost compared to the
cost of constructing a new plant.
The approval process took over five
years for the company to complete.

ONGC to drill 22 wells


State-owned Oil & Natural Gas Corp. Ltd (ONGC)
has received approval for a Rs 350-crore project to
drill 22 exploratory wells in NELP-9 blocks located
in the Banaskantha, Gandhinagar and Ahmedabad
districts of Gujarat. The wells were awarded in
2012 through the NELP-9 bidding process.
Based on the views of expert appraisal committee (EAC), the Union environment ministry has
given environmental clearance to the ONGC drilling project in Gujarat subject to strict compliance
of specific and general conditions, a senior government official said.
Each of the 22 wells will be drilled to a depth of
3,000 metres. ONGC is engaged in hydrocarbon exploration and production activities in 26 sedimentary basins of India, owns and operates more than
11,000 kilometres of pipelines in India and contributes 80% of the countrys crude oil production.

Plans to reopen
urea plants
In early April, Indian public sector companies
INGC, NTPC and Coal India were asked to reopen
three mothballed urea plants at an estimated cost
of approximately Rs18,000 crore. The government
initiative is expected to take up to four years to
achieve and is aimed at reducing Indias reliance
on imports. During a meeting at the Prime Ministers office, Fertiliser Minister Ananth Kumar,
Oil Minister Dharmendra Pradhan and Power and
Coal Minister Piyush Goyal laid out their plan to
revive three closed plants, which relies on the
availability of natural gas.
GAIL India, the State gas utility, has been tasked
with building a pipeline reaching from Jagdishpur
(Uttar Pradesh) to Haldia (West Bengal) to connect
the urea plants at Gorakhpur in Uttar Pradesh,
Barauni in Bihar and Sindhri in Jharkhand.
The plan will see ONGC forming a joint venture
with Hindustan Fertiliser Corporation (HFCL) to reopen the urea plant in Barouni. Fertiliser Corporation of India (FCIL) will form two separate joint
ventures with CIL and NTPC to reopen the Sindhri
and Gorakhpur urea plants.
Indias total urea production rose to a record 24.5
million tonnes in2015-2016, but demand is around
30 million tonnes, with the shortfall being filled by
imported product.

PM addresses water issues


During an address to open India Water
Week in New Delhi, the President of
India, Shri Pranab Mukherjee strongly
emphasized the value of a multi-disciplinary approach to water.
We must prioritize resilient eco-systems, modern data management systems and innovations in technology.
Our laws should inculcate a respect for

the principle that water is a common


legacy. We must treasure it, utilize it in
a manner that enables us to pass it on
intact, if not enhanced, to our Generation Next, stated the Prime Minister.
It is equally important for us to preserve and safeguard, to the maximum
extent possible, our depleting groundwater. We must apply improved wa-

ter-use technologies and better management techniques to our aquifers. We


must also strengthen our data base on
the quantum and quality of groundwater available to us so as to increase the
efficacy of our policy interventions,
he continued. He went on to highlight
some of the water projects underway
in India including the National Aquifer
Mapping and Management Programme
which will facilitate participatory management of ground water; and the Interlinking of Rivers programme which
is expected to address regional imbalances in water availability. It will provide water for the irrigation of 35 million hectares of land and also facilitate
34,000 MW of hydropower.

The Ministry of Water Resources,


River Development & Ganga Rejuvenation and Government of India organises the annual India Water Week.

Valve World India

May 2016

17

THROUGHOUT THE REGION BEYOND INDIA


WorleyParsons
Caspian contract
WorleyParsons has been awarded a five
year contract for Engineering, Procurement and Construction Management
(EPCm) services for BP-operated assets in Azerbaijan, Georgia and Turkey.
Under the agreement, WorleyParsons
will provide EPCm services primarily
to BP-operated Sangachal Terminal and
pipeline systems in Azerbaijan, Georgia and Turkey. The services will be
provided by a WorleyParsons Improve
Team in Azerbaijan.
We are pleased to continue our long
standing relationship with BP and to
have the opportunity to demonstrate
the value proposition of our Improve
offering on these assets said Andrew
Wood, Chief Executive Officer of WorleyParsons.

Foruzan platform
back in Iran
Iran will now manufacture the Foruzan
Oil Field platform itself, the Iranian
Offshore Engineering and Construction
Company (IOEC) has announced. IOEC
cited delays in progress at the South
Korean yard as the reason for moving
the partially completed platform to
Iran.
The 7,800-ton structure will be manufactured in Khoramshahr Ports yard
by the IOEC and Korean engineers,
Managing director of IOEC, Gholamreza
Manuchehri told Shana.
He criticized the decision to construct
the platform in South Korea and said,
Considering the lack of due progress
in manufacturing the oil rig abroad, we
managed to ship it to Iran after extensive legal work.
Stating that Foruzan Platform is the
countrys largest oil rig, he added that
after installation it will double production from the oilfield to 80,000 barrels
per day.

Saipem Azerbaijan
pipeline project

BP, Kuwait Petroleum


agreement
BP and Kuwait Petroleum Corporation (KPC) have signed a framework
agreement to explore possible joint
opportunities for investment and
cooperation in future oil, gas, trading and petrochemicals ventures.
Signed by BP chief executive officer
Bob Dudley and KPC chief executive
officer Nizar Mohammad Al-Adsani,
the agreement paves the way for
both companies to jointly invest
and cooperate in oil and gas projects in Kuwait and globally.

Saipem has been awarded a new


contract regarding the offshore
section of the Trans Adriatic Pipeline project. The contract has been
awarded by Trans Adriatic Pipeline
AG, a joint venture between BP, SOCAR, Snam S.p.A., Fluxys, Enags
and Axpo.
The EPCI contract involves the
installation of a gas pipeline between the coastlines of Albania
and Italy, across the Adriatic Sea.

The activities envisaged by the


contract include marine surveys,
the installation of a 36 105 km
offshore gas pipeline, the supply
and installation of an offshore fibre
optic cable, pre-commissioning activities and civil works at the landfalls in both Albania and Italy. The
landfall in Italy will be located at
San Foca in Puglia. The TAP pipeline
is planned to transport natural gas
from the giant Shah Deniz 2 field in
Azerbaijan to Europe.

Saudi/Bahrain A-B pipeline


During the inauguration of the
third Pipeline Operations & Management Middle East Conference
& Exhibition in Bahrain, Energy
Minister Dr Abdul-Hussain bin Ali
Mirza said that construction contracts for the Bahraini stretch of
the 115-km new multi-million-dollar A-B pipeline between Saudi
Arabia and Bahrain will be awarded before the end of the year. The
construction contracts for the 43km Saudi onshore stretch have
been awarded. Contracts have also
been awarded for the offshore 41km stretch of the pipeline, which

will be completed in the second


quarter of the 2018.
Bahrain was in the process of replacing and rerouting the 55 km
A-B pipeline, between Saudi Arabia and Bahrain, which was built
in 1945.
The new 115 km long A-B pipeline
will have an operating capacity
of 350,000 barrels per day (bpd),
with 400,000 bpd design capacity,
the Minister stated. The pipeline
will start at the Aramco Abqaiq
Plant in Saudi Arabia and end at
the Bapco refinery.

BPs commitment to Kuwait dates


back to our participation in the discovery of the giant Burgan oil field
in the 1930s and we are there today
extending the life of the field, Dudley said. In addition to enhancing oil
and gas recovery from Kuwaits ex-

Photo Kuwait Petroleum

isting resource base, the agreement


also includes the intention to study
opportunities for joint investment in
future oil and gas exploration both
inside Kuwait and globally. Other
elements of the agreement cover
possible future oil and gas trading
deals including LNG trading and related ventures.

L&T Hydrocarbon Engineering


secures orders
L&T Hydrocarbon Engineering (LTHE),
a wholly owned subsidiary of Larsen & Toubro Ltd. India, has won two
orders valued approximately USD
370 million from Petroleum Development Oman LLC (PDO). The new
order wins include Engineering,
Procurement & Construction of Saih
Nihaydah Depletion Compression
Phase 2 (SNDC2) and Kauther Depletion Compression Phase 2 (KDC2)
Project.
Petroleum Development Oman is
the foremost exploration and production company in the Sultanate
of Oman. It accounts for more than
70% of the countrys crude-oil production and nearly all of its natural-gas supply. The Company is
owned by the Government of Oman
(which has a 60% interest), Royal

Dutch Shell (34%), Total (4%) and


Partex (2%).
Saih Nihaydah Field is located in
the central Oman area. The field
has been producing via the Saih Nihaydah Gas Plant (SNGP) which was
commissioned in 2005. Kauther Gas
Plant (KGP) is located approximately
120 Km from Saih Rawl-CPP, Oman.
These projects are being implemented to overcome pressure depletion and maintain potential in order to sustain production. LTHE has
already executed three projects for
PDO viz., the Lekhwair Gas Field Development Project (USD 150 million
approx.); the Saih Rawl Depletion
Compression Project (SRDC2) (USD
235 million approx.), and the Yibal
3rd Stage Depletion Compression
(Y3DC) (USD 240 million approx.).

KBR lands Azerbeijan JV

KBR Inc. has announced its SOCAR-KBR joint venture was awarded a significant project management consultancy (PMC) Contract for the Heydar
Aliyev Baku oil refinery modernization project
in Azerbaijan. This award marks the first major
award to the joint venture, SOCAR-KBR Limited
Liability Company (SOCAR-KBR LLC), since its
inception in mid-2015. SOCAR-KBR LLC was created to provide design, engineering, technical,
consultancy, procurement, construction supervision and project management services for all
brownfield and greenfield projects across the
upstream, midstream and downstream oil and
gas sectors, in the AzerbaijanGeorgiaTurkey
(AGT) region. This company was formed to help
Azerbaijans ambition for creating a world-class

18

May 2016

Valve World India

Azerbaijan based engineering company.


SOCAR-KBR LLC will build upon KBRs long-term
project experience in Azerbaijan to perform project management services from its established
offices in Baku for the Heydar Aliyev Baku oil
refinery modernization project. The overall refinery capacity will be increased from 6 to 7.5
million tons per year.The catalytic cracking unit
capacity will be increased from 2 to 2.5 MTPY,
and Euro 5 standards will be established for all
refined products. The modernization of the Heydar Aliyev Baku oil refinery will begin immediately and will be completed by late 2018, with
an estimated capital cost of USD 1 billion for the
total project.

IN CONVERSATION WITH R. PRIYAMVADA

A Woman
of
Substance
R. Priyamvada, GM Electrical and
Instrumentation, joined EIL in 1983
as a management trainee in the
Instrumentation Department. In a
successful career spanning 33 years,
she has grown to lead the electrical
and instrumentation departments with
credentials that include prestigious
jobs such as ONGC Offshore,
Mangalore Refinery Phase-I, II &III,
Panipat Refinery, PNCP, CPCL among
many others. Valve World India had
the opportunity to meet this dynamic
woman leader who loves to face lifes
challenges. An inspiration for many,
she believes that there is no limit to
learning. Excerpts from the interview:

Q. What is your role at EIL?


I am a General Manager and my role
includes looking after Electrical and
Instrumentation. I am a qualified
automation engineer specializing in
instrumentation and controls. I obtained a B.Tech from Anna University,
Chennai and M.Tech from IIT, Delhi.

Q. How long have you been


working at EIL?
I joined EIL in 1983, which makes it 33
years. This is my first job and I hope
I will be here until my retirement in
2019.

Q. Do you work as a part of a


team?
Its always about teamwork at EIL.
Through the whole job execution
right from abstract conceptualization
to actual construction at site, we realize that only team efforts will bring
results, that combined actions contribute to overall success. This is not a
singles match but a team sport where
each individuals own skills are part of
an overall strategy. That requires the
endurance of a Marathon runner from
each and every individual.

Q. How much of your work is


allocated to valves?
I believe that dealing with valves is a
highly skilled job. Whether it relates
to the selection of valves, understanding the technical specifications or
getting involved in the procurement
process, a basic engineering knowledge is required. When we are doing
basic as well as detailed engineering,
valves form a very important part of
the whole game plan.

Q. What do you enjoy most about


your work?
The challenges and ever changing
dynamics of this industry is the most
enjoyable part of my job, as I always
strive to overcome those challenges
and try to keep up with the pace of
ever changing technologies. I find it
so exciting to be a part of this chal
lenge. Change is a way of life and
this is what I enjoy the most. This
is my first and last job, and it has
certainly given me enough challenges
and changes throughout my professional career. At EIL, there is the
opportunity to get involved in endto-end work and technically upgrade
yourself and there is a lot of freedom
given to us as an employee.

Q. What are the daily challenges of


your work?
Challenges are a source of excitement
for me which I really enjoy. They are
part of my routine job but I dont
look on them as difficulties. We more
or less always have challenging moments and come across issues during
the commissioning of projects, project
execution, or human environment interaction. But with the teams support
and also the way in which the industry has matured, my overall industry
experience gives me the confidence to
rise to those challenges.

Q. Tell us about your family


background?
I come from a very humble back
ground and hail from a small town
near Coimbatore in the state of Tamil
Nadu. My father retired as a postmas
ter and mother was a teacher.

In fact, my mother was an inspiration


for me.

Q. Who would you like to be re


born as?
From a very young age, I wanted to
become a scientist and contribute
towards the well-being of humanity.
Today, however, I work, soon to retire, as an engineer instead. Hence, I
would certainly like to be reborn as a
scientist, in India.

Q. What is the most memorable


event in your life?
After I completed my engineering
degree, I went to seek blessings from
my maternal grandfather with my
degree in my hand. I received the
compliment from him that he was
really proud of me as the first woman
engineer in the family. My mother was
the first graduate in her family.

Q. What did you do with your first


pay cheque?
As soon as the cheque was cashed,
I gave part of the money to my parents, then headed straight towards a
famous ice-cream parlour in Delhi, ordered a big portion of ice-cream, and
relished it with my family members.

Q. What is your main philosophy


in life?
Dont get bogged down with diffi
culties in life, theres always another
chance. And dont compete with
anyone else, just try to meet your
own expectations. These are the two
things that I follow in life.

Valve World India

May 2016

19

END USER INTERVIEW

National Thermal Power Corporation (NPTC) is Indias largest power


generator, supplying a quarter of the countrys electricity needs. Valve
World India took a closer look at this power giant to learn about its
strategy for the future, its expansion into renewables, and of course how
the valve industry will continue to benefit from its success in the years
ahead.

NTPC
Powering
Indias Growth
National Thermal Power Corporation
(NTPC)Limited is Indias largest energy conglomerate with its roots planted way back in
1975. Since then it has established itself as
the dominant power major with a presence in
the entire value chain of the power generation
business.Currently, NTPChas18 coal based,
7 gas based,8 solar renewable, 1 Hydroand
7subsidiaries/ joint venture power stations
in India.
The company is the largest power producer in
India in terms of both installed capacity and
generation, with aggregate installed capacity
of 45,548 MW, including 39,352 MW through
directly owned units and 6,196 MW through
Subsidiaries and Joint Ventures. A further
aggregate installed capacity of 23,254 MW is
currently under construction. Although NTPC
has 17.73% of the total national capacity, it
contributes 25.91% of the total power genera-

tion due to its focus on high efficiency.

Cutting down on fossil fuels


In order to meet the goal of reducing dependency on fossil fuels, NTPC has ventured into
generating electricity via hydro, nuclear, and
renewable energy sources.This will play a
major role in lowering its carbon footprint by
reducing green-house gas emissions. As far
as renewable energy is concerned, NTPC has
drafted its business plan of capacity addition of
about 1,000 MW through renewable resources
by 2017. In fact, it has already commissioned
110 MW Solar PV projects and construction of
another 250 MW capacity is under way together
with a 15 MW Solar PV and 8 MW Small Hydro
Projects. The organization is also associated
with adding solar capacity under National Solar
Mission.
With regards to hydro based power projects,

Diversification strategy
In order to strengthen its core business, to expand its growth and keep pace with changing
trends, NTPC has opened its doors to opportunities coming its way, changing its strategy by

13%

11%
28%

Source
Thermal Coal

Gas

Diesel
Nuclear
Hydro
RES
TOTAL

All India
170138
24473
994
5780
42473
36471
280329

Fuel Mix
25%

21%

Western Region
Northern Region
JV & Islands

20

May 2016

Valve World India

Eastern Region
Southern Region
Hydro

diversifying into adjacent business areas along


the energy value chain. In pursuit of this the
organization has developed alliances and joint
ventures with leading national and international companies, branching into coal mining,
power trading business, electricity distribution
consultancy for O&M and power equipment
manufacturing.
In a major backward integration move to create fuel security, NTPC has ventured into the
coal mining business with the aim of meeting
around 20% of its coal requirement from its
captive mines by 2017. The government of India has so far allotted 10 coal blocks to NTPC.
A wholly owned subsidiary, NTPC Vidyut Vyapar Nigam Ltd. (NVVN), has been created for
the purposes of power trading leading to optimal utilization of NTPCs assets. It is the second largest power trading company in India.
In order to facilitate power trading throughout

Source Wise Installed Capacity in India (in MW)

REGION WISE CAPACITY SPLIT


(Total MW 45548)
2%

the company has already commissioned a


capacity of 800 MW at Koldam Hydro Electric
Power Project located at Satluj River in Bilaspur
district of Himachal Pradesh. Another hydro
project under construction is Tapovan Vishnugad in the state of Uttarakhand.
Since nuclear power is seen as the fourth-largest source of energy in India after thermal,
hydro-electric and renewable sources, a joint
venture company, called Anushakti Vidhyut
Nigam Ltd., has been formed for the development of nuclear power projects with NTPC holding a 49% stake and NPCIL (Nuclear Power Corporation of India) a 51% stake and a 49% stake.

NTPC Owned
Coal
Gas / Liquid fuel
RE (Solar / Hydro)
Sub - Total
Owned by JVs & Subsidiaries
Coal & Gas
TOTAL

NTPC Capacity
38654
5984
0
0
800
110
45548

Capacity MW

% Share of NTPC
22.70
24.50
0.0
0.0
1.90
0.30
16.30

Share in %

34425
4017
910
39352

75.58
8.82
2.00
86.40

6196
45548

13.60
100

END USER INTERVIEW

India, National Power Exchange Ltd., a


joint venture between NTPC, NHPC, PFC
and TCS has been formed to operate a
Power Exchange.
NTPC Electric Supply Company Ltd.
(NESCL), a wholly owned subsidiary of
NTPC, has been set up to provide distribution and supply of power. NESCL is
engaged in the Grameen Vidyutikaran
Yojana a programme for rural electrification.
Recognising power equipment manufacturing as an ideal business opportunity, NTPC has ventured into this
sector and has formed JVs with BHEL
and Bharat Forge Ltd. for power plant
equipment manufacturing. NTPC has
also acquired a stake in Transformers
and Electricals Kerala Ltd. (TELK) for
the manufacturing and repair of transformers.

Future capacity additions


The company has a capacity of over
24,000 MW under different phases of
completion to date and plans to build a
portfolio of 10 GW of Solar PV capacity
over the next 5 years.NTPCaims to
build generation capacity of 128 GW
by the year 2032 with a lot more focus
on renewable energy. The capacity will
have a diversified fuel mix comprising
56% coal, 16% gas, 11% nuclear energy,
9% renewable energy, and 8% hydro
power based capacity.
It is anticipated that, by 2032, non-fossil fuel based generation capacity shall
make up nearly 28% of NTPCs portfolio. Further, the coal based capacity
will increasingly be based on high-efficient-low-emission technologies such
as Super-critical and Ultra-Super-critical. Along with this growth, NTPC plan
to utilize a strategic mix of options
to ensure fuel security for its fleet of
power stations. To achieve this the
company is following a multi-pronged
growth strategy which includes capac-

ity addition through green-field and


brown-field projects, expansion of
existing stations, joint ventures and
acquisition of stressed assets.

Valves in power plants


As an organization, NTPC believes that
with aggressive capacity addition for
thermal power plants, increasing O&M
requirements of existing power stations
as well as scheduled new power stations, and R&M of all power stations,
the demand for valves is surely going
to increase by leaps and bounds in the
near future.
Since the company is planning to have
72 GW coal based thermal power plants
operating by 2032, an increase from
the present coal based capacity of 38.6
GW, it is estimated that this will create
a demand of about 2.5 lakhs of valves.
Moreover, as per the projected 8% GDP
growth of the Indian economy, 289 GW
coal based power is expected to be
added in India in the coming years, until 2047. This will create a further, huge
demand of about 20-23 lakhs of valves.
A typical power plant uses around
5,500 valves for various purposes such
as flow isolation, flow control, non-return, and safety & pressure relief, generally allocated as:
Flow isolation: gate, diaphragm, butterfly, ball, plug;
Flow control: globe, ball, angle globe,
needle;
Non-return: check, QC NRVs
Safety & pressure relief: spring loaded, electromatic, hydro-electric, air
release.
Critical valves used in a power plant
include MS Stop valves, HPT / IPT Stop
cum Control valves, Three Way / Spring
Loaded HP heaters bypass valves, HP &
LP Bypass valves, Feed Water Regulating valves, APRDS Control valves, and
CRH NRV & QC NRV.
NTPC has been procuring both critical

and non-critical valves for its power stations across the country from
leading Indian as well as international
manufacturers and suppliers.
As a large, if not the largest, producer
of power in the country, NTPC has certain expectations from the valves industry: manufacturers must gear up to
meet the future demand in the power
sector with stringent project execution
schedules; manufacturing of all sizes/materials/classes of valves (both
forgings and castings) within India;
international standards to be followed
by Indian manufacturers for wider acceptability in India as well as the global market; interchangeability of valves,
actuators, and components to increase
the availability of spares; manufacturing of special function / critical valves
such as Boiler Stop valves, HP Heater
Three Way valves, BFP recirculation
valves, HP Bypass valves, LP Bypass
valves for 660 MW, 800 MW and 1000
MW, etc. within India.
The organization also expects availability of spares in time, a more compact
design for control and other valve
actuators (due to space constraints),
improved seat and gland design for no/
low leakage during service, after sales
service during the O&M phase, and
continuous improvement in design. In
addition, manufacturers need to incorporate innovative design modifications
over conventional design to achieve a
reduction in the capital cost attributed
to the valves and, lastly, Indian suppliers should consider collaboration with
international players for manufacturing
valves in India where proven technology / know-how is not currently readily
available to meet Indian power sector
needs. Going forward, research and
development needs to be carried out at
a faster pace than it is currently for the
manufacturing of nickel alloy valves

Valve World India

May 2016

21

MARKETS

Iran market attractive for India


Azadi Tower,Tehran,Iran

In January the United States and the


European Union lifted sanctions against
Iran following the United Nations nuclear
watchdogs finding that Tehran had
curbed its nuclear program as promised.
As the Iranian market opens to valve and
equipment suppliers around the globe,
speculation abounds as to how great the
impact will be.
By Joanne McIntyre

Economists estimate Iran will


now be able to unlock approximately USD100 billion of
frozen assets, while USD 30
billion worth of foreign assets
became available immediately. Indeed just days after the
sanctions were lifted, Iran
Air announced a deal to buy
114 aircraft from European
plane maker Airbus. More
mega-deals are expected
as Iran emerges from international isolation following
years of tough UN sanctions
on industries including valves
and actuation technology,
banking, shipping and aviation. The needs of the Islamic
Republic are huge and many
global companies are hoping
to cash in on the expected

trade boom.
Irans population is over 75
million, the largest in the
Middle East and North Africa,
with the exception of Egypt. It
has the worlds second largest
gas reserves, and fourth largest oil reserves.
It has been reported that
Iran plans to increase its oil
production capacity to about
5 million barrels a day by the
end of the decade, up from
the current 1 million barrels
a day.

Indian Minister
visits Tehran
Indian Oil Minister Mr Dharmendra Pradhan visited
Iran in April for talks which

included the purchase of oil,


development of a giant gas
field and investment in petrochemical projects. Mr Pradhan
had meetings with Minister of
Petroleum Mr Bijan Namdar
Zanganeh, Senior Advisor to
the President of Iran on Free
Trade Zones Mr Akbar Torkan
and Governor of Iranian Central Bank Dr Valliolah Seif.
Mr Pradhan conveyed that
Indian companies could invest
up to USD 20 billion and were
interested in setting up petrochemical and fertilizer plants,
including in the Chabahar
Special Economic Zone (SEZ),
either through a joint venture
between Indian and Iranian
public sector companies or
with private sector partners.

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22

May 2016

Valve World India

He requested Iran to allocate


adequate land in the SEZ. He
also requested the Iranians
give favourable treatment in
the pricing of gas for India
and to supply rich gas at a
competitive price for the life
of any joint venture projects.
He said that competitive gas
pricing was crucial in making
the projects attractive for the
prospective investors. He also
expressed Indias interest in
setting up a LNG plant and a
gas cracker in the Chabahar
port.
Sh Pradhan also conveyed
to the Iranian side that both
countries must expand the
basket of oil and gas trade.
He expressed Indias interest
in importing LPG from Iran

and said that companies from


both sides could discuss setting up an extraction plant in
Chabahar, if required. Both
sides agreed to continue

examining various means of


evacuation of gas such as
LNG, including through the
proposed Iran-Pakistan-India
pipeline.

Emerson buy a share in a $6.9 billion


downstream complex in Egypt
Emerson has recently announced that it will buy a
share of a $6.9 billion downstream complex in Egypt.
Once completed the complex
will not only house the
worlds largest naptha cracker but will also be the largest
petrochemical plant in Egypt.
It will be constructed in
Egypts Suez Economic Development Zone. Raw materials
will be received and eventual
products will be shipped
out from the Gulf of Suez.
At present this Tahrir Petrochemical project is under
construction.Looking ahead
to the future, it is intended
that it will produce 1.5 million tonnes of ethylene on a
yearly basis which will then
be processed into polyethylene. Polyethylene will not

be the only major product


however, for it is intended
that the plant will also produce benzene, butadiene,
polypropylene, propylene,
and styrene. Emersons partners in the deal are Carbon
Holdings an Egyptian privately-owned, downstream
investment company, Carbon
Holdings are also the company who initiated the project.
Emerson Process Automation
will carry out a $150 million
contract to automate the
plant.David Farr, Chairman
and CEO of Emerson stated
that Emerson were looking
very much forward to working with Carbon Holdings not
only on the execution of the
project but also during the
ongoing operations as well.
A spokesman for Carbon

Holdings stated that Investments of this size necessitates that partners are selected with a long history of
dealing with large, complex
projects and have the expertise to produce a reliable
plant with dependable output, which is why Emerson
was chosen to participate in
the project as it has shown
the ability to deliver a successful automation project
that results in a high-availability and an efficient operation.It is expected that further financing for this huge
project will be forthcoming
from export credit agencies
in Italy, South Korea, and the
United States of America, the
OverseAS Private Investment
Corporation, and other direct
investors.

END-USER STRATEGY

Going Local:
Saudi Aramcos Plans
to introduce 70%
Localization by 2021
Introducing the In Kingdom Total Value
Add Program (IKTVA)

Saudi Aramco recently announced changes to their business


model when they introduced the In Kingdom Total Value Add
(IKTVA) program. The company expects to spend more than 300
billion dollars over the next 10 years, of which 70 percent will
eventually be local products and services.
By James Hoare

In a recent keynote address given by Amin


H. Nasser, President & CEO of Saudi Aramco,
he commented on the low level of domestic
goods and services utiliZed in Saudi Arabia,
citing this as unsustainable and that for too
long, local content has not been a formal
requirement of doing business with Saudi
Aramco.
These werent simply words for the day of his
speech, 1st December 2015, marked the immediate launch of Saudi Aramcos In Kingdom
Total Value Add (IKTVA), a social corporate
responsibility initiative to help socioeconomic
development in Saudi Arabia.
IKTVA is a step change in our commitment
to local content development that is now required across our domestic and international
supply chain, he said.
In broad terms, IKTVAs goals are to:
(1) deliver 70% local content by 2021;
(2) enable creation of 500,000 long-term jobs;
and
(3) increase Saudi exports by 30% by 2021.
Saudi Aramco has set up a specific website
for suppliers, complete with metrics to gauge
their compliance to the above goals:
(A) Localized goods and services;
(B) Salaries paid to Saudis;
(C) Training and development of Saudis;
(D) Supplier development spending; and
(E) C ompany revenue (spend from Saudi
Aramco only).

%IKTVA=[(A+B+C+D)/E]*100
However the company insists that whilst a
metric exists, its overall design is to work
with suppliers for mutual benefit, and that
IKTVA is a value creation program, and not
just a metric.
The website also admits the initiative reorients the dynamics of our business partnerships with more than 1000 existing suppliers
and holds implications for suppliers: participation in IKTVA will be one of the components
used to evaluate any supplier proposal. This
is of course held for both local and international businesses. Dedicated account managers for suppliers and a contact centre to
assist navigating the changes have also been
established, according to the brochure, which
emphasises fairness and transparency:
IKTVA will provide a level playing field for
domestic and international suppliers through
greater consistency and increased transparency in application and process. Uniform evaluations for service and material suppliers will
be consistent across the company, providing
investment stability and assurance. The program will first establish a three-year baseline
score for each supplier measured against key
metrics for local content and value creation.
After this, Saudi Aramco and each supplier will
jointly develop an IKTVA action plan to increase the respective IKTVA scores and impact.
Performance will be tracked and measured on
an ongoing basis, says Mr. Nasser.

Valve World India

May 2016

23

COLUMNIST

Predicting the Future


for the Valve Industry
in India
Courtesy of BP.

Looking at the enormous potential and opportunities for valve


manufacturers in India as the market scenario continues to
expand and broaden
By Mrinal Das

Mrinal Das,
Jacobs Engineering

Valves are an integral part of


any large-scale industrial project. The petrochemical and refinery industries, in particular,
use very complex and exotic
materials in the construction
of valves. Without question,
all plants run on the reliability
of their valves, whether these
are manual or actuated valves.
Hence it is vital to specify and
evaluate the best possible
valve to suit every application

in each project with a proven


design.
The oil & gas sector in India
accounts for approximately
50% of the total demand for
valves whilst the petrochemicals, chemicals, and fertilizer
sectors account for another
20%. The CAGR is about 13
14% as per published data.
Most critical and complex
valves are imported. This has
much to do with the low R&D
spend of Indian manufacturing
companies and their limited
advanced manufacturing capabilities. Furthermore, domestic
manufacturers are largely unable to meet the demand for
critically large-sized complex
valves that are predominantly
used in the upstream oil & gas
sector, including choke and
Christmas tree valves.
India has many valve manufacturers, which in the last
two decades began as smalltime manufacturers of cast
iron, cast steel, and stainless

steel valves for non-specialized usage in the water, power, and chemical industries.
Due to the rapid growth in
petrochemicals, fertilizers,
and refineries in the last
decade in India, many other
medium-sized companies have
emerged other than the two
valve-giant manufacturers
L&T and BDK. Because of the
lack of research and development activities in these industries, many end-user companies have had to import valves
from manufactures in Italy,
the US and from other Western
European countries.
The demand for gate, globe,
ball, plug, butterfly valves
has grown multifold in India
and the demand is expected
to touch about 20 billion USD
in 2020. Actuator and control
valves, in particular, are in
great demand due to the drive
towards automation in all
sectors. Further, because of
good quality of castings com-

ing from the north and south


of India, international players
like Weir, Velan, Emerson/Virgo
etc. have set up joint ventures
in India and from there export
their valves worldwide.
Indian industry have special
demands for high leakage
class, exotic material like alloy
steel, monel, bronze, lined,
stainless steel of high ratings
and high pressure valves. Indian industry is developing and
catching up with international
market in manufacturing these
valves. However, still 50% of
these valves are imported so
the potential market promise
still to come is enormous.

Selection of valves
The selection of valves by an
EPC or EPC contractor is very
critical and depends on an
in-depth examination of many
parameters. Simply stated, a
valve is a device that regulates, directs, or controls the
flow of a fluid by opening,

closing, or partially obstructing various passageways in a


pipeline or system. As such,
the following parameters have
to be considered for valve
selection:
1 The maximum and operating
pressure and temperature:
This decides the rating.
ANSI/ASME class ratings and
range from ANSI Class 150#
through 2500# that are used.
2 The type of fluid. Is it a liquid, gas or vapor?
- Whether the fluid is clean
or dirty, or contains solids.
- Is there a phase change i.e.
does the fluid remains a
liquid or does it vaporize?
- Is the fluid corrosive or
erosive?
3 Flow conditions:
- Shutoff or throttling.
- Pressure drop considerations.
- Is there a backflow?
- Whether it is used for directing (mixing or diverting)
flow?
4 Operating conditions:
- Normally open or closed.
- Manual or automatic operation.
- F requency of operation.
-A
 ccessibility.
-O
 verall space/size available.
-M
 anual or automated control.
-N
 eed for bubble-tight shutoff.
- Concerns

about body joint
leaks.
- F ire safe design.
- ( 3) Flow conditions:
5 Process licensors specific
requirements.
Material selection for valves:
This is an important activity
for the engineering consultant.
Valve body-bonnet material
is selected first and then the
valve plug and seat trim. ASME
Standard B16.34 addresses
requirements for valves made
from forgings, castings, plate,
bar stock and shapes, and tubular products. This standard
identifies acceptable materials
from which valves can be constructed. Pressure-temperature
ratings, corrosion-resistance
requirements, thermal shock,
piping stress, and fire hazard
also play an important role in
material selection.
Types of materials typically
available include: ductile

24

May 2016

Valve World India

iron, carbon steel, cast iron,


stainless steels, brass, bronze,
and polyvinyl chloride (PVC)
plastic. The body materials
for small valves are usually
brass, bronze, or forged steel.
For larger valves, cast iron,
cast ductile iron, or cast steel
as required for the pressure
and service. Valve seats can
be machined integrally of the
body material, press-fitted, or
threaded (removable). Seats
of different materials can be
selected to suit difficult application requirements. The
valve seat and valve disk are
referred to as the valve trim
and are usually constructed
of the same material to meet
the service requirements. The
valve stem material should be
selected to meet the service
conditions. The trim, however, is usually of a different
material than the valve body.
Replaceable composition disks
are used in conjunction with
the plug in some designs in
order to provide adequate
close-off.
Valve stem material should be
selected to meet service conditions. Valve stem packings
undergo constant wear due
to the movement of the valve
stem; and both the packings
and body gaskets are exposed
to pressure and pressure variations of the control fluid.
Manufacturers can supply
recommendations regarding
materials and lubricants for
specific fluid temperatures and
pressures.
A piping material engineer prepares the valve data sheet and
specifications. He/She issue
this to the buyer who in turn
issues this to the approved
list of vendors. Who is on the
approved list of valve suppliers depends on their past
supplies for previous applications, their working credentials
and performance, cost, and
availability in terms of location
and time.
Valve suppliers and their
catalogues are an important
tool for the project team when
deciding upon which valves
to choose for a project. Various forums like Valve World,
Adipec, Gastech etc. also
provides valuable insights and
information to buyers.

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