The Hindu Business Line : `AP has potential to emerge a gas hub'

ANDHRA PRADESH, endowed with rich onshore and offshore natural gas resources, will soon emerge as the Henry Hub of India, becoming the gateway for the country's gas supplies.

"In three years it will emerge as the Indian gas hub following discovery and realisation of offshore gas," Mr Proshanto Banerjee, Chairman and Managing Director, GAIL (India) Ltd, said.

Henry Hub is a focal point on the natural gas pipeline system in Louisiana (the US). It interconnects nine inter-State and four intra-State pipelines. It is also the pricing point for natural gas futures traded on the New York Mercantile Exchange.

Mr Banerjee, who met the Chief Minister, Dr Y. S. Rajasekhara Reddy, in the morning, said the company had expressed willingness in assisting the State in setting up the regional gas grid that would fit well to support the national grid.

Ideally, the grid would be in place when the State can access abundant gas reserves that are expected to come up for realisation by 2008.

He hinted at signing a memorandum of understanding and, later on, a joint venture with the State Government. "We will pick equity in that," he said.

On distributing Reliance gas, he said the company had no issues on that.

GAIL would distribute piped gas in Vijayawada by April 2006. "To begin with, we supply to 1,000 houses," he said. The project was being taken up through the joint venture Bhagyanagar Gas Ltd. It would be scaled up in the next two to three years.

Mr Banerjee, who opened an APRDC (air pollution research and disease diagnostic centre) here, said a total of 22 such centres would be opened across the country. Responding to an appeal made by the MNJ Institute of Oncology Director, he said the company would assist in setting up a centre for molecular research on cancers caused by pollution. The centre would also assist in finding gene solutions.

To combat pollution, GAIL would supply natural gas in 22 cities under the Blue Sky Project.

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