GAIL to pump Rs 18,000 cr in pipelines

GAIL chairman and managing director CMD U D Choubey said today that the company plans to invest Rs 18,000 crore over the next few years in five pipeline projects and upgradation of existing trunk lines to take the fuel from gas fields and import locations to consumers. Speaking to reporters here, he said that the investment will boost GAIL8217;s pipeline transportation revenues from the current Rs 2,000 crore to Rs 5,800 crore by 2011-12. The 5,000-km pipelines would add to its gas transportation capability to 280 million standard cubic meters per day mmscmd from the current 175 mmscmd.

The new pipelines would include the 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. GAIL also plans to lay three new lines to increase the capacities of the Dahej-Vijaipur pipeline 610-km, Vijaipur-Dadri line 505 km and Vijaipur-Auraiya-Jagdishpur pipeline 571 km.

8220;The five new pipelines will be built on the common carrier principle and 33 per cent of the planned capacity will be offered to third parties,8221; Choubey said, adding that the petroleum and natural gas ministry has approved the company8217;s proposal for the new lines. He informed that expressions of interest EOIs for taking capacities in five new pipelines on a 8220;common carrier8221; basis would soon be invited in accordance with the pipeline policy.

The total length of these pipelines, along with the three capacity augmentation lines, would be around 5,000 km. 8220;This will further strengthen GAIL8217;s position as a major gas transmission company and add to the existing network of over 5,600 km,8221; Choubey said. These pipelines will be built by GAIL on ownership basis and are expected to be completed in two phases in three-four years.