GAIL to pump Rs 18,000 crore into pipeline projects

Mumbai: GAIL will invest Rs 18,000 crore over the next few years in five pipeline projects and upgradation of existing trunk lines to take the fuel from gas fields and import points to consumers, its chairman and managing director UD Choubey said.

The new pipelines include the Rs 2,500 crore Dadri-Bawana-Nangal line, Rs 1,000 crore Chainsa-Gurgaon-Jhajjhar-Hissar pipeline, Rs 2,000 crore Jagdishpur-Haldia pipeline, Rs 2,500 crore Dabhol-Bangalore line and Rs 2,500 crore Kochi-Kanjirkkod-Bangalore pipeline.

GAIL also plans to lay three new lines to increase the capacities of the Dahej-Vijaipur pipeline (610-km), Vijaipur-Dadri line (505 km) and Vijaipur-Auraiya-Jagdishpur pipeline (571 km).

The 5,000-km pipelines would enhance GAIL's gas transportation capability to 280 million standard cubic metres per day (MMSCMD) from the current 175 MMSCMD.

This will boost GAIL's pipeline transportation revenues from the current Rs 2,000 crore to Rs 5,800 crore by 2011-12.

"The five new pipelines will be built on the common carrier principle and 33 per cent of the planned capacity will be offered to third parties," Choubey said, adding that expressions of interest (EoIs) for taking capacities in five new pipelines on a 'common carrier' basis would soon be invited in accordance with the pipeline policy.

"This will further strengthen GAIL's position as a major gas transmission company and add to the existing network of over 5,600 km," Choubey said. These pipelines will be built by GAIL on ownership basis and completed in two phases in three-four years.