GAIL – Reliance on pipelines

The 1,140 km pipeline would be complete by 2012 and stretch 470 km from Vijaywada-Nellore-Chennai, and 670 km from Chennai-Tuticorin. The project is expected to require a total investment of over $US24 million.

“Reliance is planning the final route of the pipeline,” said a company spokesperson.

In addition, GAIL plans to construct over 700 km of pipeline from Dabhol to Bangalore, and Bangalore to Mangalore.

“We are authorized to lay these pipelines and we would complete them by 2012. We are also linking a pipeline from Kochi to Bangalore,” said a senior official from the company.

Reliance has already constructed around 1,400 km of the East-West pipeline from Kakinada in Andhra Pradesh to Bharuch in Gujarat, which connects with GAIL’s Hazira-Vijaipur-Jagdishpur and Dahej-Vijaipur pipeline networks at Ankot in Gujarat, Dahej-Uran and Dabhol-Panvel pipeline network at Mashkal in Maharashtra, and KG Basin pipeline network at Oduru in Andhra Pradesh.

GAIL and Reliance signed a gas transmission agreement in 2007 to share each other’s pipelines for transmission of natural gas from the KG Basin fields. The agreement provides for transportation of gas from the exploration block located in the basin in the east coast through GAIL’s network, and also for booking of capacity by GAIL in Reliance’s East-West pipeline through execution of capacity tranche agreements. The use of the pipeline will be increased by this arrangement, according to GAIL.

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