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GAIL plans pipeline to supply Petronet's LNG

Our Bureau

MUMBAI, June 18

GAIL India plans to lay a Rs 616-crore pipeline to transport natural gas from Petronet India Ltd's upcoming 5 million tonne Dahej terminal in Gujarat to industrial and domestic users up to Uran and then to Pune on the West coast.

The gas supplies would also include additional gas from the Panna-Mukta-Tapti oil and gas fields.

Mr Ram Naik, Union Minister of Petroleum and Natural Gas, today said at an industry seminar that State-owned GAIL India would complete laying the pipeline up to Uran by September 2004. Phase two which will take the gas to Pune will be completed by early 2005, Mr Naik said.

The 500-odd km pipeline will transport 12 million metric standard cubic metres gas per day to industrial users, including Tata Power, Maharashtra State Electricity Board, etc, Mr Naik said.

GAIL has the mandate to market LNG imported by Petronet LNG Ltd in which it holds a stake with ONGC, IOC and BPCL.

Meanwhile, construction of the company's Dahej-Bijapur pipeline is in final stages and is expected to be completed by the end of 2003 to coincide with the first consignment of LNG from Qatar.

Mr Prashanto Banerjee, Chairman and Managing Director of GAIL India, told reporters that Indian promoters of Petronet LNG project have agreed to a cut in margins. This will help reduce prices of imported LNG from Qatar, which was said to be higher than the "reasonable price'' of $3-3.5 per mmbtu (million British thermal units), quoted by major LNG users.

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