GAIL lays out Rs 18k cr for pipelines projects

New Delhi, Mar 30 | Updated: Mar 31 2007, 06:21am hrs
GAIL (India) Ltd announced its Rs 18,000 crore investment plan over the next few years in five new pipeline projects and upgradation of the existing trunk lines. This plan is aimed at transporting the newly discovered gas from the KG and Mahanadi basin fields of Reliance and ONGC to consuming markets.

Speaking to reporters on Friday, GAILs CMD UD Choubey said the investment would boost GAILs revenues from pipeline transportation to Rs 5,800 crore by 2011-12 from the current Rs 2,000 crore.

The new pipelines include Rs 2,500 crore Dadri-Bawana-Nangal line, Rs 1,000 crore Chainsa-Gurgaon-Jhajjhar-Hissar pipeline, Rs 2,000 crore Jagdishpur-Haldia pipeline, Rs 2,500 crore Dabhol-Bangalore line and Rs 2,500 crore Kochi-Kanjirkkod-Bangalore pipeline.

Choubey said the expressions of interest (EoIs) for booking capacities in five new pipelines on common carrier basis will be invited in accordance with the pipeline policy soon. The total length of these pipelines along with the three capacity augmentation lines will be around 5,000 km.

These pipelines, he said, would enhance the companys gas transportation capability to 280 million standard cubic meters per day from current 175 mmscmd.

In addition to these, GAIL will lay three new lines to augment the capacities of Dahej-Vijaipur pipeline (610 km), Vijaipur-Dadri line (505 km), Vijaipur-Auraiya-Jagdishpur pipeline (571 km).

The five new pipelines will be build on common carrier principle and 33% of the planned capacity would be offered to third parties, he said adding petroleum ministry has approved GAILs proposal for the new lines.

Besides the newly found gas, these new pipelines would also transport the gas imported at LNG terminals in Gujarat, at Dabhol in Maharashtra and under-construction Kochi project in Kerala to consumers.

These pipelines will be built by GAIL on ownership basis and are expected to be completed in two phases in the next three-four years.