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Unocal proposes pipeline project from Bangladesh -- To uplink with GAIL network

Our Bureau

BANGALORE, July 20

THE US energy major, Unocal, has proposed setting up a 1350 kilo metre pipeline project from Bibiyana in Habibganj district in Bangladesh and link up with the Gas Authority of India Ltd's (GAIL) Hazira-Bijapur-Jagdishpur Pipeline.

Speaking at the conference on `Power generation -- Global trend', here today Mr Ron Sommers, President of Unocal, said that this would make available at least 5 billion cubic metres (Bcm) of gas per year from Bibiyana. This pipeline is estimated to cost at least $900 million.

However, he said, the company would have to find Indian customers, either fertiliser companies or power utilities, for lifting the gas. Gas from this source would help in reducing the demand shortfall estimated at 10 Bcm in 2005 and expected to rise to 7 6 Bcm

Referring to the 1850-MW Ennore Power Project, where Unocal is 18.66 per cent equity holder, Mr Sommers said that talks were still under way. He claimed that power from this project would be one of the cheapest and cleanest sources of base

load power.

This he attributed to fixed price contract that Ennore had obtained from RasGas. The contract with RasGas valid for a period of 20 years is at a tariff of $3.7 per million British thermal units. He said that given the current tariff, Karnataka should loo k for hiking the offtake from the current level of 300 MW.

He said that Unocal was also looking forward partnering the State-owned utility Karnataka Power Corporation Ltd (KPCL) in the 700 MW Bidadi Power Project to be set up on the outskirts of Bangalore city.

However, the Centre would have to find a way of amicably resolving the standoff in Dabhol Power Company between Enron and the Maharashtra State Electricity Board. ``Unless this issue is resolved, finding funds for power projects is going to be difficult, '' he added.