GAIL plans to invest Rs 14,000 cr to double pipeline output

The state-run GAIL (India) is planning to invest Rs 14,000 crore to double the capacity of its existing pipeline network to meet the increasing "industrial" demand for liquefied petroleum gas (LPG) in the country.

On the sidelines of a conference organised by the Bombay Chambers of Commerce and Industry, M M Mandal, executive director, GAIL (Marketing) said, "We are planning to double our existing pipeline network to meet the growing demand from our consumers."

GAIL's 1,927-km LPG pipeline network connects the western, northern and southern parts of the country. It includes the world's longest exclusive LPG pipeline from Jamnagar in Gujarat to Loni near Delhi (another 70 km has been added between Kandla and Samakhiali in Gujarat, to facilitate the transportation of LPG entering the Kandla port).

GAIL's LPG pipelines can transport 3.8 million tonnes per annum of LPG, and have the capacity to supply more than 20 per cent of the LPG consumed in the country.

GAIL is also examining the possibility of interconnecting Vizag-Secunderabad LPG pipeline with Kakinada Port to bring LPG from Kakinada.

The natural gas major is holding discussions with oil marketing companies so as to provide connectivity to their various bottling plants for supplying LPG from fractionators and ensuring connectivity with the existing LPG pipeline network.

The company recently signed a gas transmission agreement with the Mukesh Ambani-controlled Reliance Gas Transportation Infrastructure.