National gas pipeline grid remains a dream

Petroleum Ministry feels network will evolve with gas markets

Two decades have gone by since plans for a nation-wide gas pipeline network were chalked out but the government is yet to make a move on the project.

Industry watchers say issues surrounding the planned network remain unresolved even though the gas market is moving towards greater competition.

The national gas grid was supposed to be a network of inter- connected transmission pipelines providing linkage to various supply sources.

But the ministry of petroleum and natural gas has taken a stand that the grid need not be taken up as a separate project and be allowed to evolve with the development of gas markets, says an official.

There are varying views on this stand of the government. Private companies in gas business, like Reliance and BG India, which have formed the Gas Industry Group, are pitching for open access to the existing pipelines.

But the parliamentary committee on petroleum has envisaged a bigger role for public sector Gail (India) Ltd, which is the current owner of the network.

"In view of the increasing gas availability from various sources, the committee recommends that the government should develop a national gas grid on the lines of the power grid, under government control, to ensure regional balance, keeping in view the uneven availability of gas in various regions of the country," says the committee in its report.