Reliance proposes MoU with Andhra for piped gas network

Gas flow from KG D6 to commence in Q2, 2008.

Reliance Industries Limited (RIL) has proposed to enter into a memorandum of understanding with the Andhra Pradesh government for the implementation of piped gas supply network for domestic households and other sectors in the state while seeking the government's support for speedy execution of the project.

R P Sarma, president, LNG Business of RIL, has approached the state government with the company's plans on piped gas in the backdrop RIL chairman Mukesh Ambani's announcement at Hyderabad a couple of days back that the company would provide gas for the use of common people of Andhra before utilising it for other sectors.

Reliance has indicated to the government that the gas flow from KG D6 discovery is expected to begin in the second quarter of the year 2008, bringing home the sense of urgency in taking up the piped gas network along the trunklines being laid by the company.

The work on the gas terminal at Gudimoga near Kakinada is on full swing to make the facility ready before the scheduled commencement of gas production in the offshore discovery.

Reliance Gas Transmission Infrastructure Limited (RGTIL) has already started work on the 1,400-km East-West pipeline, which traverses through seven districts in Andhra covering 560 km.

The Centre has also cleared RIL's request for authorisation to lay another pipeline from KG D6 terminal towers towards Chennai, which traverses through five districts in Andhra covering a distance of 540 km. RIL has proposed to establish a city gas network along these and other proposed trunklines.

The company has also applied for laying a pipeline from Kakinada to Kolkata, which is yet to receive the Centre's permission.

Confirming the RIL's move, sources in the government said the company's proposal would be studied before taking a final view on how to go about with the pipeline network.

It may be recalled that the state government had also proposed to develop a gas grid in the state under public-private participation. Reliance is said to have told the government in the past that it preferred to lay the pipeline network on its own.