Gail may get GTICL’s Kakinada to Goa

Recently, Gail made an offer to Reliance to build the pipeline for transportation and marketing of the gas it discovered in the Krishna-Godavari (KG) basin.

RIL, along with Nikko Resources of Canada, had hit a major gas reserve in NELP-1 block KG-DWN-98/3 in the KG offshore. The preliminary gas reserve estimate made by RIL in the block is over seven trillion cubic feet, which is around 198 billion cubic metre.

For the supply of gas to its customers, the proposed pipeline project from Kakinada to Goa will cover a distance of 1,300 km, followed by 2,500 km Jamnagar-Bhopal-Cuttack link. Gail has also proposed to lay a 200-km offshore pipeline for RIL form the gas well-head to landfall point in Kakinada. The total cost of the project is estimated to be around Rs 11,000 crore.

Much before the gas discovery of Reliance, GTCIL planned to lay natural gas pipeline network, which originates from Goa and passes through Goa, Maharashtra, Karnataka and Andhra Pradesh. It is also learnt that the Ministry of Petroleum and Natural Gas has cleared two pipeline projects to be undertaken by GTCIL—Goa-Hyderabad-Kakinada pipeline project and Jamnagar-Bhopal pipeline project—which will be extended to Cuttack in Orissa.

Most of the industries situated in Andhra have already plans to procure gas from Reliance.