Business Daily from THE HINDU group of publications
Tuesday, Apr 10, 2007
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Business Daily from THE HINDU group of publications Tuesday, Apr 10, 2007 ePaper |
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Corporate
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Outlook Industry & Economy - Petroleum
V. Rishi Kumar
Plans ahead The company eventually plans to lay pipelines stretching about 10,000 km across the country. Phase I covering four States to be completed by 18 months.
Mumbai April 9 Reliance Industries Ltd plans to invest between Rs 25,000 crore and Rs 30,000 crore in a pipeline grid that covers main gas transport trunk lines supplemented by spur lines crisscrossing four major States initially, followed by a pan-India network. It expects to eventually lay pipelines stretching about 10,000 km across the country, which would be used on "common carrier basis." Initial stretch of about 1,950 km of main line and about 1,150 km of spur lines would be laid within 18 months and all of the 10,000 km line within three years. Of the initial investment of about Rs 18,000 crore that would cover two major trunk lines, about Rs 9,000 crore would be invested in pipelines in Andhra Pradesh alone. This would be supplemented by City Gas Distribution network.
Complement upstream work
Reliance officials told visiting journalists at Petroleum House in Mumbai that the work on two main trunk lines — the East West corridor and the Kakinada-Haldia link — would be taken up followed by other networks. This investment in pipelines would complement about $7 billion in investment in upstream work across the country in exploration and production. Reliance Gas Transport Infrastructure Ltd (RGTIL) would complete work on the national grid of pipeline and the phase one envisages coverage across four States of Andhra Pradesh, Maharashtra, Gujarat and Rajasthan, to be completed within 18 months. The pipeline would initially seek to supply all the bulk users, be it power projects, fertiliser units and later link up locally through city distribution networks along the pipe grid through spur lines. While the Kakinada to West coast pipeline line is at an advanced stage, the company is in the process of working on East Coast link between Kakinada and Hazira and beyond to supply to industrial consumers. Alongside, efforts are on to connect Kakinda and Chennai and extend this up to Tuticorin while also linking up Chennai and Bangalore and this may even go up to Kochi, said the company officials.
SYNERGIES
"We would also bring in synergies with some of the other existing pipelines on a common carrier basis. The pipeline created in the South would be able to evacuate gas from the GAIL Petronet terminal," they explained. When completed, the pipeline grid would be equivalent to about 6-7 pipelines the size of the Hazira pipeline that stretches up to Delhi. Asked about the pricing of domestic piped gas supply, they said that a consumer would have to pay about Rs 200 as against Rs 300 per cylinder. The best part is they would not have to wait for 21 days to book for gas.
More Stories on : Outlook | Petroleum | Infrastructure | Reliance Industries Ltd
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