Hyderabad: The Petroleum and Natural Gas Regulatory Board has imposed a Rs 20 lakh penalty on state-owned Gail for lapses that led to an explosion at one of the pipelines, which claimed the lives of 29 persons last year. An additional penalty of Rs 1 lakh per day will be imposed for continuing operations despite the lapses.
The pipeline was designated to transport dry gas, but was used for wet gas with condensed water. The water caused corrosion and subsequent leakage from the pipeline four metres below the ground.
The oil regulator found that Gail was guilty of severe lapses that led to an explosion and subsequent fire, killing 29 persons and injuring 10 others. The explosion occurred on a Gail pipeline that supplied gas to Lanco power plant, near Nagaram village in Tatipaka on June 27, 2014.
The PNGRB, said in an order, that Gail admitted to various lapses, including not providing a gas dehydration unit at the mouth of the pipeline as well as transporting wet gas through a line designed for dry gas. The order also pointed out: “The presence of internal corrosion in the pipeline on account of high level of moisture in the gas being supplied into the KG Basin pipeline system 2007 was a major reason for the blast.
