Financial Daily from THE HINDU group of publications Tuesday, Nov 02, 2004 |
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Corporate
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Announcements Feasibility report on GAIL's Myanmar gas import soon Pratim Ranjan Bose
Kolkata , Nov. 1 INTERNATIONAL consultant Snamprogetti will submit the pre-feasibility report (PFR) on GAIL's proposed natural gas import project, preferably through a pipeline, from Myanmar to India in mid-November. The report will ultimately help facilitate the monetisation of the gas reserves of A1 block in Myanmar. GAIL is already nominated as the "preferred buyer by the Myanmar government for A1 block" with an expected gas reserve of 5 trillion cubic ft. The company has also taken part in the exploration bid for A3 block. According to company sources, among the options explored in the PFR are: laying of a 1,450-km pipeline skirting Bangladesh and through the North-Eastern states; 800 km of pipeline through Bangladesh; roughly 500 km of deep-sea pipeline; and, importing the gas in liquid form by sea and regassifying it at a plant in Haldia in West Bengal. The GAIL sources said work on a detailed feasibility report would begin following short-listing of options by Snamprogetti in the PFR. Snamprogtti is also expected to prepare the detailed feasibility report (DFR) for the proposed project. Meanwhile, the company is expecting finalisation of the DFR for its proposed West Bengal coal gassification project in technical collaboration with Royal Dutch Shell by the end of this year. According to GAIL, Shell is already commissioning a number of such plants in China and possesses technology ideal for Indian coal, having up to 35 per cent ash content. GAIL has already appointed Uhde India Ltd as a consultant for finalising the DFR contract for coal gassification. The tender for the DFR will be opened on November 3 and the draft report will be submitted within 12 weeks from award of the contract.
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