GAIL Clears Dahej-Uran Pipeline Via Hazira

New Delhi, October 30: | Updated: Oct 31 2002, 05:30am hrs
Gas Authority of India Limited (Gail) has approved a Rs 1,600 crore proposal to lay a 600 km gas pipeline network from Dahej to Uran via Hazira. This pipeline will supply natural gas and re-gassified LNG from Dahej, Hazira and other adjoining gas fields to consumers in Maharashtra.

The proposed trunk pipeline from Dahej to Uran via Hazira will have spurlines to Pune, Thane and Trombay and will meet the demand of consumers in Nasik, Uran, Pune and Trombay regions of Maharashtra. Senior company officials told FE that the financial appraisal of the detailed feasibility report (DFR) for this pipeline network project has been carried out by Crisil Advisory Services.

When contacted, chairman and managing director, Gail, Proshanto Banerjee confirmed that the board has cleared the proposal for laying a pipeline network from Dahej to Uran.

Giving details, company officials said that Gail is presently supplying around 9.5 million metric standard cubic meters per day (mmscmd) from Mumbai High fields of the Oil and Natural Gas Corporation (ONGC) to consumers in the Uran region (covering Uran, Trombay and Thal).

With a demand of around 19 mmscmd in Uran region, the current gas allocation in Uran region is around 16.6 mmscmd and the actual gas supplies are much lower at 9.5 mmscmd. Along with this shortfall of 10 mmscmd, the demand is estimated to grow by another 26 mmscmd in the next five years, GAIL officials said.

Some of the major industrial consumers in the region to whom gas is currently being supplied by GAIL includes Tata Electric Company (TEC), Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), Rashtriya Chemicals and Fertilisers (RCF) and Ispat Industries Limited (IIL). The gas is coming from the Mumbai High fields of ONGC.

While the demand of gas in the region is expected to grow to 36 mmscmd, a look at ONGCs long-term gas potential plan (LTGP-2000) indicates that gas availability at Uran for the next 8 years will come down from 11.78 mmscmd in 2002-03 to a mere 0.71 mmscmd by 2010-11.

It is in view of the increasing demand of gas vis-a-vis its decreasing availability from Mumbai High fields that GAIL has planned to lay this pipeline network from Dahej to Uran, officials said.

Re-gassified LNG (R-LNG) will be lifted from 5 million tonne per annum Dahej terminal of Petronet LNG Limited (PLL). The capacity of PLLs terminal is expected to increase to 7.5 mmtpa, which is equivalent to 26 mmscmd of R-LNG.

In addition to the transportation of re-gassified LNG from Dahej, the new pipeline network could also be used for transporting gas from other available sources in Gujarat, officials said.