Bid & Tender
APGDC Starts Work on Kakinada to Srikakulam Pipeline Installation

Date : Aug 07, 2015

Banking on the natural resources available across the east coast and the sea, the Andhra Pradesh government is laying two major pipelines to transport natural gas explored in the Krishna-Godavari Basin.

 

The development of both the pipelines will be laid by the AP Gas Development Corporation (APGDC), a joint venture company of Andhra Pradesh government and GAIL Gas Limited with 50% equity each.

 

The first pipeline is from Kakinada to Srikakulam covering 301 km spread over the four north coastal districts of East Godavari, Visakhapatnam, Vizianagaram and Srikakulam.

 

The second pipeline is from Kakinada to Nellore covering a distance of 501 km and connecting all major power stations being developed in Krishna, Guntur, Prakasam and Nellore.

 

The corporation was established to have a regional gas pipeline distribution network in various cities and towns in the state.

 

The State Secretary for Infrastructure and Energy, Ajay Jain says "Our target is to develop the state by exploiting the gas reserves available in the KG Basin. We have already started works on the first pipeline. Work on laying the second pipeline will start soon. Through these pipelines, we want to provide LPG to domestic consumers, CNG to vehicles and gas to industries."

 

The state government has already finalised the plan to connect the second pipeline by linking Tumkur in Karnataka with Nellore via Hindupur. Though the KG Basin has plenty of gas reserves, lack of pipelines has been a major challenge for the state to make the state economy gas-driven.

 

Mr Jain said that, "With the completion of the two pipelines and linking with the Karnataka line, we can provide LPG and CNG to all major towns and natural gas to all gas-based industries and power stations. There is a massive demand for gas from industries that are eagerly waiting for the pipelines to become functional."

 

The APGDC had also submitted the bid to lay a pipeline from Nellore to Ennore in Tamil Nadu so that the gas available across the east coast can be transported in the most cost-effective way. The AP government had asked the existing industries to spell out their future demand for gas so that it can tie up with national and international gas supplying companies and import gas at the Kakinada LNG terminal.

 

Several power stations, ceramic, cement, chemical, paper, glass and heavy machinery companies have submitted their requirement for gas in the coming year. "We are working on procuring gas from ONGC, GSPC, Reliance Industries and Cairn Limited and also to import from international companies like Shell," said a senior official in the infrastructure department.

 

The laying of pipelines across the 10 districts of the state is set to give a big fillip to gas-based industrial activity. The AP government has already proposed to companies in Singapore, Japan and China to provide clean and environment-friendly fuel at a reasonable price once they set up shop in the state. "We have planned to rope in investments worth Rs 1000 billion in a span of five years and this would be possible only through creating a gas pipeline network across the east coast," the energy secretary said.

 

"Our target is to develop the state by exploiting the gas reserves available in the KG Basin. We have already started works on the first pipeline. Work on laying the second pipeline will start soon. Through these pipelines, we want to provide LPG to domestic consumers, CNG to vehicles and gas to industries." He also added.