BS reported that Gujarat State Petronet Limited led consortium has bagged a contract from Petroleum and Natural Gas Regulatory Board for laying three cross country gas distribution pipelines. GSPL has received letter of authorization from PNGRB for Mallavaram Bhilvara, Mehasana Bhatinda and Bhatinda Jammu pipelines, estimated to cost INR 12,500 crore.

Mr Tapan Ray MD of GSPL said that "The GSPL led consortium was declared the lowest bidder by PNGRB in October 2010 and LoA for the three cross country pipelines was issued on May 18th 2011."

Mr Ray said that "We, along with our partners, will soon form a special purpose vehicle for the project."

Mr Ray said that "The laying of three major gas pipelines will facilitate the development of networks leading to the evolution of the much awaited National Gas Grid, which is critical for the country's energy security." He added that the projects signify emergence of GSPL, a subsidiary of state oil & gas PSU GSPC, as a national player in gas transportation.

Mr Ray added that the pipelines are estimated to be built at a initial capital expenditure of INR 12,500 crore and will have capacity to carry around 95 million metric cubic meters per day of gas.

The state run natural gas transporter has 52% stake in the consortium whose other partners are IOC (26%), BPCL (11%) and HPCL (11%).

GSPL, India's second largest gas transmission company after GAIL, currently operates over 1900 kilometers pipeline network in Gujarat, the company's officials said, adding this network is being expanded to around 2,500 kilometers.

(Sourced from BS)