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Virendra Pandit

Gujarat State Petroleum Corp, Reliance Gas too enter agreement

Gandhinagar March 31 Gujarat State Petronet Ltd (GSPL) and Reliance Industries Ltd (RIL) have signed a gas transportation agreement to transport 11 million standard cubic meters per day (MSCMD) of natural gas from Bhadbhut in Bharuch to RIL's refinery and petrochemical complex in Jamnagar.

Under this agreement, RIL has an option to increase the volume up to 14 MSCMD. The company would transport portion of its K-G gas from Kakinada, Andhra Pradesh, through its East-West pipeline and deliver the same to GSPL at Bharuch. For transportation of gas, GSPL would use its existing pipeline and develop new pipelines between Bharuch to Hadala and Rajkot to Jamnagar.

Gas transportation shall commence in the second quarter of 2008. The agreement is valid for a period of 15 years from the date of commencement, a GSPC spokesman said on Saturday.

Similarly, Gujarat State Petroleum Corporation Ltd (GSPC) has signed a gas transportation agreement with Reliance Gas Transmission and Infrastructure Ltd (RGTIL) for transportation of 3.5 MSCMD of natural gas from its largest K-G basin discovery at Kakinada to Gujarat. As per this agreement, GSPC has an option to increase the volume up to 11 MSCMD.

For transportation of gas from Kakinada to Gujarat, RGTIL is developing a pipeline between Kakinada and Bharuch. The transportation of gas shall commence as soon as GSPC starts production from its K-G basin. The agreement is valid for a period of 15 years from the date of beginning.

The Managing Director of GSPC, Mr D.J. Pandian, and Mr P.M.S. Prasad, President & CEO, Petroleum Business, RIL, signed the agreements in the presence of the Minister of State for Energy and Petrochemicals, Mr Saurabh Patel, and Mr D. Rajgopalan, Chairman, GSPC, and other officials from GSPC, GSPL, RGTIL and RIL.

Gujarat State Petroleum had made the largest discovery of natural gas in the K-G basin two years ago and the commercial production is likely to commence from mid-2009.

People-friendly

Being a domestic gas, when it reaches Gujarat, it will be available to the people at a competitive price compared to imported gas. This also will help in supplying gas on a sustainable and long-term basis to the power sector, and for local distribution including the household, resulting in the overall economic development of the State by bridging the demand-supply gap to some extent.

Gas grid

Meanwhile, the establishment of gas grid project in Gujarat, covering 2,500 km of long high-pressure pipeline is at an advances stage.

It has commissioned more than 1,140 km of pipeline, which connects 13 district headquarters. These sections of the pipeline are supplying gas to small and medium industries including ceramic industries. Moreover, Gujarat has initiated setting up of city gas distribution projects in 20 cities, including Gandhinagar, where nearly 10,000 customers have opted for piped gas in place of LPG cylinders.

More Stories on : Petroleum | Alliances & Joint Ventures | Reliance Industries Ltd | Gujarat

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