That is a heater exhaust pipe with fibreglass heat sleeving. You can get quite a bit of condensation dripping, depending upon climatic conditions, when first run until it is all burnt off. Can happen at any time also if the exhaust has been badly installed with a downward loop and no water drain point made. ( I had a guy that installed one of my kits in a boat and had a downward loop without a drain - he managed to fill the exhaust completely blocking it and therefore the heater would not work! )
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