The Telegraph
Monday , December 24 , 2012
Since 1st March, 1999
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LPG project stalled

Bhubaneswar, Dec. 23: Supply of cooking gas through pipeline or city gas distribution (CGD) system for domestic and other consumption in Bhubaneswar and Cuttack and nearby urban areas might take some more time because of delay in the gas pipeline projects passing through the state.

Of two gas pipeline projects passing through Odisha Paradip-Surat and Kakinada-Haldia the former is progressing gradually, but the Kakinada-Haldia project has been shelved for the time being as there will be re-bidding for the Krishna-Godavari basin gas block.

Former chairman, Petroleum and Natural Gas Regulatory Board (PNGRB) India, Labanyendu Mansingh told The Telegraph that when the bidding was about to start in 2010, everyone thought that Odisha would get CGD facility through piped natural gas network in three years, but the pipeline progress was not helping much.

However, he said the Surat-Paradip pipeline being laid by the state-owned gas company of Gujarat is progressing towards Odisha from central India and the pipeline was likely to enter the state shortly. In 2010, Mansingh had told The Telegraph that within three years Odisha was to get PNG supply and in future seven other smaller cities would get natural gas from the CGD system. Mansingh was the chairman and managing director of PNGRB, India, then. He was here in the city to take part in the Odisha Environment Congress, 2012, which concluded yesterday.

Earlier, a PNGRB study had discovered that nine urban centres in Odisha Bhubaneswar, Khurda, Jajpur, Bhadrak, Rourkela, Ananadpur, Kendrapara, Balasore and Baripada had potential to be linked to the CGD system for natural gas supply.

Mansingh, however, said the delay in the pipeline projects was because of a policy decision by the Centre as the possible manufacturers were not interested to waste the reserves, as natural gas is available at a lower price in countries such as Canada.

Moreover, there is a controversy over the production of natural gas wells in basins such as Krishna-Godavari and Mahanadi as like the private players, many state governments are also interested in having control over natural gas production by forming state-owned companies for gas production.