The
four projects were orginally authorised to Mukesh Ambani’s RGTIL
The
downstream oil and gas regulator is preparing to invite fresh bids to build
four gas pipeline projects originally authorised to Mukesh Ambani’s Reliance
Gas Transportation Infrastructure.
Petroleum
and Natural Gas Regulatory Board (PNGRB) chairman S Krishnan said fresh
expressions of interest will be sought to build four trunk pipelines —
Kakinada-Haldia, Kakinada-Chennai, Chennai-Tuticorin and
Chennai-Bangalore-Mangalore. Relogistics Infrastructure, a subsidiary of
Reliance Gas Transportation, had won government authorisation nearly five years
ago to lay the four trunk pipelines with a length of 2,175 km.
But
that was cancelled last month after the regulator determined that the company
had made scant progress.
“We
are waiting for the government’s approval,” Krishnan told ET in Hyderabad on
Monday. Reliance Gas Transportation, privately owned by Mukesh Ambani, built
the 1,300-km East-West pipeline, linking Kakinada in AP and Bharuch in Gujarat,
is the largest greenfield pipeline development ever undertaken in the country,
after the discovery of gas by Reliance Industries in the offshore KG D-6 block
in 2002. Krishna said the four pipeline projects were authorised by the
government prior to the notification of the act which created the regulatory
body.
“As
a result, we had two options before us — either to accept the authorisation or
to refer it back to the government with our recommendation. Our understanding
of the issue was that sufficient progress has not been made and recommended to
the government to cancel them.” On the contention of the gas pipeline operator
that there was no gas available in the first place to lay the pipelines,
Krishnan said the Mukesh Ambani entity “could have procured the gas from
outside and fed it through floating storage units” but it didn’t appear “keen
on doing it”.
Krishnan
said the regulator will now await voluntary expressions of interest and then
consider seeking fresh bids for the pipelines. “We will ask the interested
parties to tell us the economical size of these pipelines and the load factors
for fresh bids. We will take a view whether there is feasibility for laying the
pipelines, which is a very expensive business and involves getting rights of
way through agricultural lands and forests.” Deferred gas supplies: On the
proposal of Reliance Gas Transportation for deferred gas supplies to the power
projects in view of the paucity of fuel, he said the regulator is in the
process of conducting public consultations. “If you were to look at the plant
load factors which make it economical to run a power plant, the gas is not
available as we thought. Power plants have come up hoping that rampup of KG-D6
will take place in a certain fashion.”
Exploring
Options
•
Four trunk pipelines include Kakinada-Haldia, Kakinada-Chennai,
Chennai-Tuticorin and Chennai-Bangalore-Mangalore
•
Relogistics Infrastructure, a subsidiary of Reliance Gas Transportation, had won
government authorisation nearly five years ago
•
Krishna said the 4 pipeline projects were authorised by the government prior to
the notification of the act which created the regulatory body
Source: ET
Source: ET
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