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AP clears GAIL's piped gas scheme

Our Bureau

HYDERABAD, Jan. 18

THE State Government has approved a proposal by the Gas Authority of India Ltd (GAIL) for supply of piped gas for domestic, commercial and industrial use in the Godavari delta towns of the State. This is considered to be first such move to provide gas th rough pipelines in the country.

Kakinada, Rajahmundry, Amalapuram, Ramachandrapuram, Mandapeta, Bheemavaram, Palakollu, Narasapur, Tanuku, Yelamanchili, Eluru, and Tadepalligudem will have the benefit of piped gas facility two years from now. This project when completed would help in c ost reduction by about 10 per cent in comparison to the gas supplied through cylinders.

The move to allow the GAIL to provide piped gas is in cognisance with its major expansion plans including in the areas of marketing and distribution and construction of LPG pipelines in the State.

The Government's decision to allow GAIL to develop the pipeline was taken by the Chief Minister, Mr. N. Chandrababu Naidu, at a high level meeting with the Managing Director of GAIL, Mr. C.R. Prasad, which was attended by other officials and the State Po wer Minister.

This development follows the increased availability of gas as indicated by the ONGC in the Krishna-Godavari (KG) basin which the joint venture produces at the Ravva fields as also the decision of the company to set up LPG pipeline.

GAIL supplies about 4.8 million cubic meters of gas per day in the KG basin and this is expected to increase to 8.6 million by 2002. As a part of the integrated gas pipeline network, GAIL has proposed to set up LNG terminal at Kakinada as a joint venture project. This includes a proposal to set-up a three-million-tonne LNG terminal with the provision to expand as per the requirement of the State.

The GAIL officials have been asked to work in co-ordination with the Andhra Pradesh Industrial Infrastructure Corporation Ltd to expedite the process of project implementation.

The Government has been assured by the GAIL officials that the people residing in the delta towns would be in a position to get gas through pipelines in about two years time. However, the Government expressed a view that the GAIL should take steps to exp edite the work.

The presentation made by the company detailed GAIL's plans for gas supply, sources for existing facilities, joint venture potential and a detailed existing scenario of its network in the State, availability of gas, existing allocations and supply in the KG basin. GAIL explained its vision for Andhra Pradesh, including proposed LNG projects, gas demand assessment, and plans for the Kakinada LNG project.