Ahmedabad: Gujarat State Petronet Ltd (GSPL) led consortium, which was announced as the lowest bidder by the Petroleum & Natural Gas Regulatory Board (PNGRB) last year has been awarded ’Letter of Authorisation (LOA)’ to lay down three cross country pipelines.
The pipelines are to be completed in 3 years from the date of issuance of LOA. Now, GSPL along with its consortium partners IOCL, BPCL and HPCL is all set to develop 3900 kms of cross country inter-state natural gas pipeline, the company said in a press statement today.
Earlier this month, the Supreme Court allowed PNGRB to process all pending applications for the grant of licences to provide retail CNG to automobiles and piped cooking gas to households in cities.
A 21 January 2010 order of the Delhi High Court had questioned the powers of PNGRB to issue authorisation for city gas distribution (CGD) projects. It also rendered the previous authorisations by PNGRB invalid.
The Mallavaram – Bhilwara (1611 km), Mehsana –Bhatinda (1688 km) and Bhatinda – Jammu (512 km) pipelines are estimated to be built at a initial capital expenditure of Rs 12,500 crores and having initial capacity to carry around 95 Million Metric Standard Cubic Metres per Day of gas.
GSPL with 52% stake in consortium along with State-owned IOCL (26%), BPCL (11%) and HPCL (11%) had won all the three bids invited by the PNGRB for Mallavaram – Bhilwara, Mehsana – Bhatinda and Bhatinda – Jammu Pipelines in October 2010. The award of the LOA signifies the advent of competition in the gas transportation business across the country.
This would facilitate the development of pipeline networks leading to the evolution of the much awaited National Gas Grid, which is critical for the country’s energy security. It also signifies emergence of GSPL as a national player in gas transportation.
GSPL, India’s second largest gas transmission company currently operates over 1900 km pipeline network in Gujarat. This network is under expansion to approx. 2500 km.
The above pipelines will be connected to the existing Gujarat grid, thereby creating an integrated network covering approximately 1/3rd of the country’s geography enabling flow of gas from multiple gas sources to principal demand centres.
The pipelines would traverse through states of Andhra Pradesh, Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Haryana, NCR, Punjab and Jammu & Kashmir and benefit the cement plants, fertilizer and chemical units and upcoming city gas distributors on the route which do not have pipeline connectivity as yet.