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GAIL Executing 5,000 Km New Pipeline Projects at a Cost of Rs 25,000 Crore, says Chairman Tripathi

State-owned natural gas transmission utility GAIL (India) is currently is currently executing new 5,000 Km of trunk pipeline across the country at an estimated cost of Rs 25,000 crore, Chairman and Managing Director B C Tripathi said today.

 

“Today GAIL is executing almost 5,000 Km new trunk pipeline across the country at the cost of Rs 25,000 crore. Currently, in seven states almost 4,000 Km length of pipelines are being constructed on ground and the construction of the rest 1,000 KM pipeline should start in November this year when we will launch construction deep into West Bengal and North-East,” he said at an event on the launch of the company’s online portal for common carrier capacity here.

 

Tripathi said the company is also investing around Rs 3,500 crore in the current financial year along with its Joint Venture partners and its subsidiary firm in setting up city gas distribution networks.

 

GAIL had first started allowing open access to other entities for its pipelines in 2004. However, applications for access had to be given physically. The launch of the online portal for common carrier capacity is a step towards a functioning natural gas trading hub, the company said.

 

Guidelines set by Petroleum and Natural Gas Regulatory Board (PNGRB), the country’s downstream oil and gas regulator, stipulate providing 25 per cent of the total pipeline capacity as common carrier capacity, for providing non-discriminatory open-access on first-come-first-served basis for transporting third party gas for a period of less than one year.

 

According to Tripathi, of the total earmarked common carrier capacity under GAIL’s pipelines, almost 33 per cent of the capacity was used by third party transporters during the last financial year ended March 2018.

 

“Apart from focussing on laying of trunk pipelines, great emphasis is being laid on achieving last mile connectivity for retailing of gas. GAIL, along with its Joint Venture and subsidiary, is investing almost Rs 3,500 crore this financial year alone, where we have a target of connecting more than 10 lakh homes and 350 CNG stations,” Tripathi said.

 

He added that apart from re-negotiation of Liquefied Natural Gas (LNG) contracts the company has started supplying gas through its own ships in the European and Middle-East markets based on delivered-ship basis. Tripathi also announced the first phase of Pradhan Mantri Urja Ganga project that involves setting up gas pipelines will be commissioned in the current calendar year ahead of schedule.

 

GAIL is the country’s largest natural gas company and operates more than 11,400 Km of natural gas pipelines across the country.

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