Richa Mishra

New Delhi, Dec 13

GAIL (India) Ltd is looking at the D6 block and re-gassified liquefied natural gas (R-LNG) as probable sources of gas for its ongoing Dabhol-Bengaluru and Kochi-Kanjirkkod-Bengaluru-Mangalore pipeline projects.

“Each network will have the capacity to transport 16 mscmd of gas. The probable sources of gas are the Krishna Godavari Basin (D6 block operated by Reliance Industries Ltd), R-LNG from Dabhol and Petronet LNG's under-implementation Kochi terminal,” official sources told Business Line.

Currently GAIL is ferrying about 28 mscmd of D6 block gas to customers in Andhra Pradesh, Maharashtra and Gujarat. Its 7,100-km pipeline network is transmitting about 120 mscmd of gas from various sources including D6 block.

GAIL was authorised to lay the Dabhol-Bengaluru and Kochi-Kanjirkkod-Bengaluru-Mangalore pipelines by the Petroleum Ministry in 2007. The projects would be completed by 2012-13. The company is investing Rs 7,575.43 crore, with a foreign exchange component of Rs 212.02 crore, in the two projects.

For the 1,389-km Dabhol-Bengaluru pipeline project, the GAIL Board had approved an investment of Rs 4,543.43 crore, including a foreign exchange component of Rs 193.45 crore.

The pipeline with capacity to transport 16 mscmd of gas will be implemented in two phases and the spur lines/feeder lines will also be laid alongside.

The 1,114-km Kochi-Kanjirkkod-Bengaluru-Mangalore pipeline project, with an investment of Rs 3,032 crore including foreign exchange component of Rs 18.57 crore, has been designed to transmit 16 mscmd of gas including four mscmd as common carrier.

Beneficiaries from this network will include SEZ Vyapin Kochi, Cochin Minerals, Binani Zinc, BPCL refinery, Apollo Tyres and Kozhikode-KESEB Power plant.

(This article was published in the Business Line print edition dated December 14, 2009)
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