The Hindu Business Line : Reliance KG gas pipeline may be ready by March

New Delhi, Sept 16 Reliance Gas Transportation Infrastructure Ltd (RGTIL), a Mukesh Ambani-led company, which is implementing the 1,440-km pipeline project from Kakinada (Andhra Pradesh) to Ahmedabad (Gujarat) to transport gas from Reliance Industries Ltd’s (RIL) east-coast fields, expects to complete the project by March 2008.

According to a source, the company plans to put in place the east-west pipeline for carrying gas from the D6 block of the Krishna-Godavari Basin three months ahead of the scheduled production from the block. The company is targeting the June-July 2008 deadline for gas production from the block.

Brushing aside speculations that Reliance was going slow on the pipeline project as there was a delay in getting a nod for its gas pricing formula, sources said work was in progress at different locations and the company expects to meet the deadline.

An empowered group of ministers (EGoM) examining the company’s gas pricing formula recently gave its nod with minor modifications. According to the modifications proposed, the gas price at the delivery point, Kakinada, will be $4.20 per mBtu (million British thermal unit). This excluded the marketing margins, transportation tariff and taxes.

RGTIL plans to connect the pipeline to GAIL (India) Ltd’s network near Uran. It would be a two-way pipeline, with capacity to transport 120 million standard cubic metres per day of gas. Nearly 1,800 Chinese workers are involved in the project. Sources said the estimated cost of the project is $3.5 billion.

Meanwhile, RIL has also proposed a new tariff plan for the transportation of gas from its KG find. As per RIL’s proposal, consumers close to KG basin will pay transportation charges of $0.17 per mBtu, while those in other parts of the State will pay $0.45 per mBtu, and consumers in the rest of the country would pay $0.93 per mBtu.

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