The Petroleum and Natural Gas Regulatory Board (PNGRB) today granted authorisation to the State Government-controlled Gujarat State Petronet Ltd-led consortium for constructing the Mallavaram (Andhra Pradesh)- Vijaipur (Madhra Pradesh); Mehsana (Gujarat)-Bhatinda (Punjab) and Bhatinda-Srinagar (J&K) trunk pipeline for carrying natural gas.
GSPL owns a controlling 52 per cent stake in the consortium with IOC (26 per cent), BPCL (11 per cent) and HPCL (11 per cent). Overall, the consortium will lay nearly 4,000 km of pipeline at an estimated investment of Rs 12,500 crore.
Though awarded the trunk pipeline projects in end 2010 through a bidding process, PNGRB could not issue the much needed “letter of intent for grant of authorisation” due to pending litigation at the Supreme Court questioning the authority of the Board under Section 16 of the PNGRB Act.
The apex court has passed a verdict in favour of the regulatory board on May 12.
“As per the tender guidelines, the pipelines will be completed in three years (2014) from receipt of the authorisation. We will soon incorporate a SPV to take up the trunk pipeline projects,” a GSPC official told Business Line .
According to him, the three pipelines together will give a reasonable shape to the proposed national gas grid.
Of the three pipelines, the Mallavaram-Bhopal (MP)-Bhilwara (Rajasthan)-Vijaipur pipeline will connect the gas bearing Krishna-Godavari basin in Andhra Pradesh with the consumption centres in Central India.
Since Vijaipur is already connected by DVPL trunk pipeline connecting Gujarat to the northern part of the country, gas produced from the K-G basin as well as the Western offshore can be flown up to J&K at the Northern most tip of the country through the Mehasana-Bhatinda and Bhatinda-Srinagar pipelines.