Work on longest pipeline begins

JAMNAGAR, OCT 16: Construction of the world's longest exclusive liquefied petroleum gas LPG pipeline began here on Saturday with Gas Au...

JAMNAGAR, OCT 16: Construction of the world8217;s longest exclusive liquefied petroleum gas LPG pipeline began here on Saturday with Gas Authority of India Gail chairman and managing director C R Prasad breaking ground to launch work.

The 1250-km-long pipeline between Jamnagar and Loni had been approved by the centre three years ago. It will cost nearly Rs 1230 crore and was likely to be completed by February 2001.

This marked the entry of Gail into yet another area, that is transportation of LPG through pipeline in what was the first cross-country LPG pipeline in India. So far, LPG movement was done by road or rail transport which not only used other hydrocarbon fuels like diesel but also posed environmental hazards, Prasad said on the occasion.

This was the second mega-pipeline project of Gail in Gujarat after the Hazira-Bijaypur-Jagadishpur HBJ pipeline which began 13 years ago. Gujarat was now the second largest recipient of natural gas from Gail, which was associated with the production of 1900megawatt of power and 319 metric tonnes of fertilizers in this western state, besides outputs from industries like textiles, diary food, glass and ceramics.

The Jamnagar-Loni pipeline will pass through five states 8211; Gujarat, Rajasthan, Haryana, Delhi and Uttar Pradesh. The LPG will be picked up from Reliance Petroleum Limited RPL and the Essar Refineries at Jamnagar and subsequently from the import terminal of Indian Oil Corporation Ltd IOCL at Kandla.

Enroute, the LPG shall be evacuated at Ajmer and Jaipur in Rajasthan, Piyala in Haryana, Madanpur Khadar in Delhi and Loni in UP the pipeline shall have an initial capacity of 1.7 million metric tonnes per annum MMTPA which would be later enhanced to 2.5 MMTPA by the year 2011-12.

The transportation of LPG through pipelines is more reliable, safer, environment-friendly and the most economical mode of transport. In terms of the environmental preservation, it means there would be a reduction in the emission of carbon-monoxide Gail was also in theprocess of proposing two more LPG pipelines in southern India, one from Visakhapattnam to Sikanderabad in Andhra and the other from Mangalore to Madurai in Karnataka and Andhra Pradesh.

Gail profits up

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MUMBAI: Gail has shown an improved performance during the last quarter with sales increasing by about 25 per cent of Rs 2102 crore Rs 1683 crore and gross profit profit after interest but before depreciation and tax increasing by about 39 per cent of Rs 468 crore Rs 338 crore. The net profit for the period increased by 54 per cent to Rs 293 crore against Rs 190 crore in the same period of the previous year.