New Delhi: The battle to dominate the gas market in eastern India is intensifying with state-owned GAIL India opposed to a move by H-Energy, a subsidiary of real estate firm Hiranandani Group, to lay a 125km pipeline between Kukrahati in East Midnapore and Itinda in North 24-Parganas.

H-Energy's pipeline would result in the duplication of infrastructure and impact the capacity utilisation of the gas to be supplied by the PSU's Jagdishpur-Haldia & Bokaro-Dhamra natural gas pipeline (JHBDPL) project, GAIL .

The state-owned transporter was responding to a public consultation sought by downstream oil and gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB).

"The CCEA has approved a capital grant of 40 per cent of JHBDPL's project cost of Rs 12,940 crore and, thus, it is part funded by the Centre. It is important that the pipeline's capacity utilisation prospects are not compromised by duplication of infrastructure in and around JHBDPL," GAIL said.

It further said, "The projected demand along the proposed Kukrahati-Itinda pipeline can be met by JHBDPL itself. The potential gas to be supplied to Bangladesh can also be catered through JHBDPL by laying a spur-line of about 85km from Calcutta to Petrapol."

The proposed pipeline by the Hiranandani firm will originate from the LNG regasification terminal being developed by Bengal Concessions Pvt Ltd, an affiliate of H-Energy, at Kukrahati. It shall pass through Sarisha, South 24-Parganas, and end at Itinda in North 24-Parganas, covering an approximate distance of 125km.

According to the details of the plan submitted to the Petroleum and Natural Gas Regulatory Board for approval, the pipeline would provide RLNG (regasified liquefied natural gas) to customers at Kukrahati in east Midnapore district. Its next stop would be near Sarisha to cater to Calcutta's city gas distribution network followed by Minakhan in North 24-Parganas.

GAIL said, "The EoI has not provided the details of sourcing, tie-up arrangements for LNG which would be the commodity to be supplied through the proposed pipeline."

The pipeline would reach Itinda for custody transfer of RLNG at the India border for customers/pipeline companies in Bangladesh. It will cater to the new power plants, the city gas distribution network, industrial users in the existing grid and 3600MW power plant coming up at Payra.

H-Energy has estimated the potential demand would be around 15-18 million standard cubic metres per day (mmscmd) along the route of the natural gas pipeline and the demand is expected to grow annually by 5 per cent.

Putting a question mark on the demand, GAIL said "the demand from non-bulk customers would be limited in comparison with the total projected demand... also no indicative volume has been conveyed about the potential demand in Bangladesh, which is to be supplied gas through the proposed pipeline".

Eastern India has so far been untouched by the gas revolution with pipelines transporting the environment-friendly fuel mostly in west and north India.