GAIL expansion drive

State-owned gas transporter GAIL India on Tuesday said it would expand its pipeline network capacity about 50 per cent in three years by constructing 5,500-kilometers of new lines.

By Our Special Correspondent
  • Published 12.09.18
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New Delhi: State-owned gas transporter GAIL India on Tuesday said it would expand its pipeline network capacity about 50 per cent in three years by constructing 5,500-kilometers of new lines.

The state-owned company is also looking at setting up 400 CNG stations and giving out 10 lakh piped natural gas (PNG) connections to households, chairman and managing director B.C. Tripathi said.

GAIL operates 11,000-km of pipeline network and markets two-thirds of all natural gas sold in the country.

It is rapidly building infrastructure to support the government push towards a gas-based economy by raising the share of natural gas in the energy basket to 15 per cent from the current 6.2 per cent in the next few years.

GAIL plans to "add 5,500-km gas pipelines to the existing network and leapfrog to capacity augmentation by about 50 per cent on the current base in the next three years in phases," Tripathi told shareholders at the company's 34th AGM. The company is building a 2,655-km gas pipeline from Jagdishpur in Uttar Pradesh to Bengal and Odisha, with the first phase set to be be completed ahead of the December target.

The Jagdishpur-Haldia & Bokaro-Dhamra Natural Gas Pipeline project started in July 2015.

Tripathi said the pipeline section from Phulpur to Varanasi has been commissioned, while the pipeline to Patna would commence in the next couple of months. The pipeline would be extended to Guwahati. "The proposed pipeline up to Guwahati would interconnect with the upcoming 1,500-km 'Indradhanush' pipeline network conceived to operate in Northeast by the public sector oil and gas majors, " Tripathi said.

In addition, supplies through city gas distribution (CGD) networks have started in Bhubaneswar and Cuttack.

The CGD operations include the sale of CNG to automobiles and piped natural gas or PNG to household kitchens for cooking purpose. The CNG is being pushed as a replacement for polluting liquid fuels such as diesel.