The Hindu Business Line : GAIL firming up plans for Jagdishpur-Haldia pipeline

Lack of supply of natural gas and delay in finalising the national pipeline policy has taken a toll on the project. Prospects of more gas production brighten

Kolkata June 1 As the prospect of more gas production brightens, GAIL India is hopeful of firming up plans for an 870-km long pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal by early 2008.

According to sources, the company recently renewed its MoU with the West Bengal Power Development Company Ltd (WBPDCL) — the State generating agency — for supply of roughly 1-1.5 million standard cubic metre of gas per day (mmscmd) for the proposed 300-MW gas based unit at Bandel by 2011.

This is the first gas-based unit proposed in the State, apart from some captive capacities considered by a number of companies including IndianOil.

Mr S. Mahapatra, Managing Director of WBPDCL, told Business Line that the company was planning to replace their existing four units of 60-MW each at Bandel with a gas-based unit of 300 MW. The project is estimated to cost approximately Rs 1,000 crore. Set up decades ago, these units are already de-rated by WBPDCL.

"We are hopeful of a positive feedback from GAIL to firm up our plans for the proposed gas based unit in early 2008," Mr Mahapatra said, adding that if the project comes through, it would increase the total capacity of the Bandel power station from 450 MW to 510 MW (inclusive of the existing 210-MW thermal unit).

Timeline

GAIL had originally proposed the pipeline — as a branch of the HBJ pipeline — in late 2004. The project was slated to be completed in 2006. Accordingly, GAIL had entered into a MoU with WBPDCL for supply at the proposed gas-based unit at Bandel.

However, lack of supply of natural gas and delay in finalising the national pipeline policy has taken a toll on the project.

The project was revived recently when GAIL expressed its interest to the Union Petroleum and Natural Gas Ministry for taking up the project.

Sources in GAIL confirmed that apart from its recent agreement for purchase of 10 mmscmd gas from Reliance, the company was pinning hopes on the development of major finds by GSPC and ONGC in the KG basin and smaller finds in the Mahanadi basin.

Sources in ONGC have also confirmed that they are in touch with GAIL for monetising their recent strikes in the KG and Mahanadi basin.

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