GAILs $3-billion pipelines on hold for want of buyers

Dec 02 2013, 07:56 IST
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SummaryGAIL India has put two natural gas pipelines with envisaged investments of $3 billion on the back burner

in July 2009. The 2,050-km pipeline was intended to be go through West Bengal,

Jharkhand, Bihar and Uttar Pradesh. Reliance Gas Transportation Infrastructure (RGTIL) was earlier expected to set up a 1,100-km pipeline from Kakinada to Haldia to ferry natural gas from KG-D6.

The pipeline was planned to revive several defunct fertiliser units in its path. We understand from the media that the government has decided to put up six new plants which might be the conversion of existing plants or some greenfield projects. But we will wait till something concrete emerges as we are willing to construct the pipelines if we get customers, said Goyal.

GAIL won the bid to construct the 1,500-km Surat-Paradip pipeline in 2011 that would connect Gujarat, Maharashtra, Chhattisgarh and Orissa. The pipeline was planned to have a capacity to transport up to 60 mmscmd of gas entailing an investment of around Rs 9,000 crore.

GAIL operates a pipeline network of around 11,000 km and currently transmits only around 100 mmscmd compared to a capacity of 210 mmscmd. This translates into a pipeline utilisation of just around 48%.

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