Industry & Economy
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Petroleum
GAIL gearing up to pipe-link Kakinada with Kolkata, Chennai
Pratim Ranjan Bose
Kolkata. Sept. 2
AFTER finalising plans for laying the Rs 4,500-crore Jagdishpur-Kolkata natural gas pipeline, GAIL (India) Ltd is now gearing up to lay Kakinada-Kolkata and Kakinada-Chennai gas pipelines. The projects may help exploit the emerging potential of Krishna-Godavari basin and Mahanadi basin in the long term.
GAIL is pursuing exploration and production activities in three blocks in the Mahanadi Basin and Bay of Bengal. The blocks were awarded under the New Exploration and Licensing Policy (NELP) to consortia where GAIL is a participant.
Informed company sources said that GAIL had already conducted a detailed feasibility report, route survey and cadastral survey of both the Kakinada-Kolkata and Kakinada-Chennai pipelines. The environmental management plan or rapid risk assessment report has also been prepared.
Talking specifically about the Kakinada-Kolkata pipeline, the sources said, "The project proposal has been submitted to the Ministry for ROU (right of usage) acquisition." The estimated cost of laying the pipeline is Rs 4,000 crore. The GAIL management expects that the project will be approved by the board of directors "in the near future."
The Kakinada-Kolkata pipeline will cater to a large part of Andhra Pradesh, Orissa, West Bengal and parts of the industrial areas in Chhattisgarh. The pipeline will pass close to Vizag and will provide a link between Vizag and the KG basin, sources said. The company is also in the process of entering into an MoU with Vizag Steel in this regard.
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