REL eyes GAIL gas line for UP project

Reliance Energy (REL) has approached GAIL India for transporting gas for its 4000 MW power plant coming up at Dadri in Uttar Pradesh.

GAIL has offered solutions to transport gas from the Krishna-Godvari (KG) basin to Dadri by using a part of the Hazira-Vijaipur-Jagdishpur (HVJ) network.

A company executive said a configuration that yields optimal expenses, which was comparable to the direct pipeline from KG Basin to Dadri as well as additional gas supply security, was being worked out.

REL was looking at pipeline connectivity of gas for transporting about 20 MMSCMD of natural gas required for the plant by 2008. REL has plans to expand capacity of the Dadri power plant to 8000 MW, thereby, increasing the demand of gas to 40 MMSCMD.

GAIL's proposed pipeline from Kakinada will connect to the HVJ pipeline system at Vijaipur in Madhya Pradesh for supply of the KG basin gas to REL's power plant at Dadri and other gas markets in North India.

"Further, this linkage shall offer another attractive option for linking the KG basin gas source to the Western India gas market through a swapping arrangement using HVJ pipeline," said the executive.