PNGRB may cancel authorisation if pipeline delay continues.
The Petroleum and Natural Gas Regulatory Board (PNGRB) today said it will hear Reliance Gas Transportation India Limited's (RGTIL's) stand on delay in pipeline works between Kakinada and Haldia and take a call on the cancellation of authorisation soon. The Board had slapped a notice in June on the Mukesh Ambani-owned company for the delay.
Speaking to mediapersons on the sidelines of CII's conference on natural gas here today, PNGRB chairman L Mansingh said Reliance had replied to their notice citing reasons for the delay. “We had asked them to clarify why they have not started work on the project as yet. Our stand is clear... either they do it or give it out,” he said.
The Kakinada-Haldia pipeline was supposed to supply natural gas from the Krishna-Godavari (KG) basin to parts of Andhra Pradesh, large parts of Orissa and the southern districts of West Bengal.
“It is a chicken and egg situation. Unless additional gas is available, laying the pipeline would not be a wise thing ... this is their (Reliance's) stand. Unless there is pipeline, gas will not come. Our general stand is, irrespective of who has been authorised, you cannot take that authorisation and prevent others from doing it. You do it or if somebody is willing to invest, we will grant authorisation,” Mansingh said.
Saying that the Board would give Reliance a formal hearing and then take a decision, he said the ministry of Petroleum and Natural Gas, had in 2007, issued authorisation to RGTIL for the 1,100-km pipeline. According to the conditions laid out in the approval, the companies should complete the projects within 36 months from receiving the right of way (RoW).
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Responding on the issue, R Suresh, senior vice-president (gas business), Reliance Industries, said the project required a lot of investment and the company will stick to its plans. “Our people are in touch with PNGRB. These things require a lot of investment with long gestation period. It does not come all of a sudden. We have to cover up a lot of areas before the pipeline is laid. It is an authorised pipeline and we will stick to the plan,” Suresh said.
RIL to up production at K-G basin
Suresh said Reliance Industries Limited was working on a scientific study to take the gas production from its D-6 block in the KG basin to its peak 80 mscmd (million standard cubic metres per day). At present, RIL’s production from the block is 55 mscmd.
“We are doing some scientific assessment, which was already informed to the government. Some studies are going on for the production ramp up in the D-6 block. Based on the report, we will decide how to ramp up the production. It is a large reservoir. We should reach the optimal output on a study basis. We have informed the government that it will take longer for assessment,” Suresh said.