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IOC may buy 30pct in GAIL pipeline
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Friday, 16 Nov 2012
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Business Standard reported that state owned gas utility GAIL India may offer up to 30% stake in its 1,550 kilometer natural gas pipeline from Surat in Gujarat to Paradip in Odisha to Indian Oil Corporation.

GAIL had this April secured rights to lay the pipeline to connect the west and east coasts. The pipeline would have a capacity to transport up to 60 million standard cubic meter of gas per day. GAIL will have 36 months to lay the pipeline and commission it.

A senior IOC official, without divulging details said that “Yes, we are in talks with GAIL to pick up stake in its Surat-Paradip pipeline.”

Another senior official said IOC would be able to secure some capacity in the pipeline for its own use against the stake offered by GAIL.

A senior GAIL official, confirming the development, said that the 36 inch pipeline would cost over INR 9,000 crore. If IOC accepts GAIL’s offer, it would contribute for its share.

Mr BC Tripathi chairman of GAIL said that it was investing USD 6 billion in creating natural gas infrastructure.

The pipeline is to originate from Mora in Gujarat and cover Gujarat, Maharashtra, Chhattisgarh and Odisha. GAIL has a trunk pipeline network of 11,000 kilometer which it uses to market LNG, both domestically produced and imported, in the country.

IOC operates a network of 10,909 kilometer crude oil, petroleum product and gas pipelines with a capacity of 75.55 million tonnes per annum of oil and 10 million standard cubic meter per day of gas.

IOC on its website said that it has planned 2,000 kilometer new pipeline projects, worth approximately INR 2,000 crore, to expand the infrastructure for transportation of crude oil and petroleum products. These include the 700 kilometer Paradip to Haldia to Budge Budge to Kalyani to Durgapur LPG Pipeline, 295 kilometer Sanganer to Bijwasan Naphtha Pipeline, 270 kilometer branch pipeline from Patna to Motihari and Baitalpur, 120 kilometer Cauvery Basin Refinery to Trichy Pipeline and 400 kilometer Ennore to Trichy to Puducherry LPG Pipeline.

Source - Business Standard

(www.steelguru.com)

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