The Telegraph
Since 1st March, 1999
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Gail lines up hub in Haldia

Calcutta, May 4: Gail (India) Ltd is planning to use Haldia, the port town of Bengal, as a hub for supplying gas and naphtha to the entire eastern region.

The stated-owned gas major has decided to diversify into a fuel and feedstock firm and provide total fuel solution to the industries in the eastern region.

Gail is currently in talks with multinational companies like Shell and BP Amoco, besides others for naphtha sourcing. According to a senior Gail executive, the discussions are on a matured level and the company will be able to start importing naphtha for the region very shortly.

“We have already done a demand survey in this region which made us very optimistic so far as bringing naphtha is concerned. There are various industries in the power, petrochemicals and fertiliser sectors where both naphtha and gas can be used in bulk quantity as feedstock or fuel,” the executive said.

Gail, he said, feels Haldia has the potential to become the Jamnagar of east where besides port facility, various other important industries have come up.

Moreover, the port facility can be used to supply the products to other locations in the eastern region like Orissa and Jharkhand, he added.

The company is also in the process of laying a pipeline to connect Godavari basin in the south to Haldia and Jharkhand. The project cost would be between Rs 2,500 to Rs 3,000 crore, the official said.

“The pipeline will be a part of the 12,000-km long green quadrilateral which the company has already started at an investment of Rs 20,000 crore,” he said.

Meanwhile, Gail has offered to sell imported naphtha to Haldia Petrochemicals Ltd (HPL). Recently, it had entered into a marketing tie-up with HPL for selling petro-chemical products.

The company feels that there has been a crisis of gas and naphtha in this region which opens up a strong business opportunity for itself.

“We have spoken to a lot of companies and our feedback is that the current supply situation does not meet even 30 to 40 per cent of the total demand. So, if we can supply both the products at a competitive rate and with a secured supply term, we believe we will be able to corner a large chunk of business,” he said.

Gail, which sells 62.69 million standard cubic metres of natural gas per day, would target power and fertiliser customers along the coastline for selling imported naphtha. It is also the principal marketer of 5 million tonnes of LNG per annum to be imported at Dahej in Gujarat from early next year.

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