Business Daily from THE HINDU group of publications
Monday, May 28, 2007
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Business Daily from THE HINDU group of publications Monday, May 28, 2007 ePaper |
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Outlook Industry & Economy - Petroleum States - West Bengal
Pratim Ranjan Bose
Since no other producer — such as ONGC and GSPC, which have struck gas in the east coast — has ready field development plans, none applied for `contract carriage' through the pipeline.
Kolkata May 27 By 2009-10, Reliance Industries Ltd (RIL) may supply to West Bengal up to 20 million standard cubic metres of natural gas a day (mscmd) from its finds in Krishna-Godavari and Mahanadi-North Eastern Coast (NEC) basin. Apart from supplies to large industrial users, Reliance has firmed up plans for city gas distribution in a number of districts in the State. Company sources told Business Line that RIL recently finalised the capacity of its proposed 1,100-km Kakinada-Haldia pipeline at 20 mscmd. The pipeline will pass through Basudevpur (Orissa), the proposed landfall point of the natural gas find in Mahanadi-NEC basin. The uniform capacity pipeline may also be used for evacuation of the gas produced in Mahanadi basin to other parts of the country.
Applications
As per the prescribed guidelines, RIL had invited applications from other possible users of the pipeline with firm supply as well as demand commitments. The last date of the application was April 28. Since no other producer — such as ONGC and GSPC, which have struck gas in the east coast — has ready field development plans, none applied for `contract carriage' through the pipeline. Accordingly, the pipeline capacity is finalised on the basis of RIL's own firm capacity requirement plus 33 per cent additional capacity for "common future carriage."
Pipeline design
A source said, "We have finalised the size and design of the pipeline and are waiting for the formal authorisation from the Centre. Once it is available, we will immediately submit the bank guarantee." The source added, "This will follow the gazette notification on the competent authorities in Bengal and Orissa, who will start working towards the land acquisition for laying the pipeline." Though the cost of the 20-mscmd pipeline could not be confirmed, Mr R.P. Sharma, President (LNG Business), had earlier stated that such a pipeline project of 10 mscm capacity would cost Rs 8,000 crore. Besides, the proposed city gas distribution projects in Kolkata, Howrah, Hooghly, Midnapore and Burdwan may cost Rs 5,000 crore. The company is expecting a gas demand of 3.5 mscmd in the five locations. Reliance has already firmed up plans for 20 mscmd and 40 mscmd gas pipelines from Kakinada to Tamil Nadu and Gujarat respectively. Kakinada is the landfall point of the KG basin find (D-6), slated to produce 80 mscmd from 2008-09.
More Stories on : Outlook | Petroleum | Reliance Industries Ltd | West Bengal
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