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This is an archive article published on November 18, 2003

Shell objects to Gail executing pipeline grids

Oil firm Royal Dutch/Shell has objected to state-run Gail India Ltd being made sole agency to build the Rs 20,000 crore national gas pipelin...

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Oil firm Royal Dutch/Shell has objected to state-run Gail India Ltd being made sole agency to build the Rs 20,000 crore national gas pipeline grid saying infrastructure would grow rapidly if left open for all players. 8216;8216;We don8217;t see the need to restrict it building of 7,900-km national gas grid to one player. Construction of infrastructure should be left to market forces8230; let players decide on what, when and where they want to lay pipelines,8217;8217; Shell India LNG head Marc De Hartog said. Government has, in its draft gas pipeline policy, named Gail as the sole executing agency for all inter-state lines, including the 7,900-km criss-crossing grid that will be the only vehicle for all public and private sector firms to move the fuel from producing fields and import locations on East and West coast to inland demand centres.

Infrastructure will grow more rapidly if left open for all, he said, rubbishing arguments of duplication if all companies were allowed to lay their own pipelines.

 

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