A Rs 2500-crore natural gas pipeline is proposed to be developed to link East and South connecting Paradip in Odisha and Hyderabad in Telangana State, according to Union Petroleum and Natural Gas Minister Dharmendra Pradhan.

Addressing a press conference here today after a two-day tour of Andhra Pradesh and Telangana, Pradhan said, “Work on the pipeline would begin from both locations during the year and is expected to be completed within two years. The pipeline aims to provide gas supply to Hyderabad and some of the industries on its course including the Rs 5000-crore fertiliser plant coming up in Ramagundam in Telangana.”

Pradhan said the Union Petroleum Ministry is keen that Hyderabad and Telangana State get additional supply of LPG and CNG to meet the domestic and transportation requirements. Additional supplies would be possible by increasing the fuel supplies and strengthening the storage facilities.

Currently, there are four bottling plants and these would be expanded. In addition it is proposed to invest about Rs 300 crore to expand the storage terminals while setting up two more terminals and expanding capacity at two other existing terminals.

In addition, he said HPCL was conducting a feasibility study for a pipeline from West to Hyderabad to be taken up in the second phase. However, work on the first pipeline would be taken up shortly.

IOC is also in the process of setting up of a product terminal with an investment outlay of Rs 500 crore. All these infrastructure initiatives would significantly strengthen the supply of LPG and CNG, the latter particularly to meet the requirements for the automotive fuel, he explained.

Referring to the Narendra Modi Government initiatives, the Minister said that the Centre has come out with a new approach where the revenues from a mining resource located in the respective State would be shared. This makes States partners in progress, he said.

NELP X

The Minister said that the X round of New Exploration Licensing Policy auctions would be taken up before the year end and efforts are now underway to simplify the process.

The policy would have three major components which would provide for progressive sharing as against production sharing contracts now, open acreage licence where oil and gas companies can bid for any block throughout the year without the Government having to hold an auction and lastly the licensee will have the flexibility to explore any other related natural resource.

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