India plans 180 bn national gas grid

Thursday, 14 August 2003, 19:30 IST
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NEW DELHI: India is planning to set up a national gas grid over the next five to seven years with an initial investment of 180 billion, Petroleum Minister Ram Naik said here Thursday. The grid would link various gas sources and potential markets, he said. The minister told members of the Petroleum Consultative Committee that India's gas infrastructure major GAIL (India) Ltd "had conceptualised a national gas grid project linking various gas sources and potential markets through inter-state high pressure gas pipeline network". This project would help in optimal and efficient utilisation of gas within various parts of the country, he added. Briefing Parliament members on the gas transportation scenario in the country, Naik said the first phase of the national gas grid would involve construction of 6,500 to 7,000 km of cross-country pipelines. Preliminary estimates indicated that the project would involve an investment of between 160 billion and 180 billion over the next five to seven years. To help the country meet the demand for gas, the government is trying to not only step up domestic exploration and production but also increase imports. Demand is projected to rise to 231 million metric standard cubic metres per day (MMSCMD) by 2007 against the current demand of 119 MMSCMD and supply of just 66 MMSCMD. Said Naik: "The government is pursuing the import of gas through pipelines from Iran, Bangladesh and Myanmar in particular." Nothing has been finalised so far though feasibility studies are being done. In the case of gas from Iran and Bangladesh, political factors have held up the import proposals. Meanwhile, through a joint venture of state-owned energy majors Petronet LNG Ltd (PLL), India is set to begin import of liquefied natural gas from Qatar from beginning of next year. The LNG terminal, being set up by PLL at Dahej in Gujarat, "has achieved 85 percent progress and is scheduled for completion by December", Naik told members of the committee. Commercial supplies from Dahej terminal are expected to start in January. "For distribution of regassified LNG from Dahej, GAIL is laying gas pipelines from Dahej to Bijaipur at a cost of 29 billion and another pipeline from Dahej to Uran near Mumbai in Maharashtra at a cost of 14 billion," Naik said. In addition to transportation, India is currently studying the pricing of gas --both domestic and what is to be imported - as the fate of the other proposed LNG terminal projects depends on it. Almost 80 percent of the natural gas produced in the country is currently being used for generation of power and fertiliser. Being a highly price sensitive market segment, the government is studying various ways, including economic transportation of gas, to make the price consumer-friendly.
Source: IANS