Gujarat State Petronet Ltd (GSPL)-led consortium has bagged a contract from Petroleum and Natural Gas Regulatory Board (PNGRB) for laying three cross- country gas distribution pipelines.
GSPL has received letter of authorisation (LoA) from PNGRB for Mallavaram-Bhilvara (1611 km), Mehasana-Bhatinda (1688 km) and Bhatinda-Jammu (512 km) pipelines, estimated to cost Rs 12,500 crore.
"The GSPL-led consortium was declared the lowest bidder by PNGRB in October 2010 and LoA for the three cross-country pipelines was issued on Wednesday," GSPL Managing Director Tapan Ray told PTI.
The state-run natural gas transporter has 52% stake in the consortium whose other partners are IOC (26%), BPCL (11%) and HPCL (11%).
"We, along with our partners, will soon form a special purpose vehicle for the project," Ray said.
GSPL, India's second largest gas transmission company after GAIL, currently operates over 1900-km pipeline network in Gujarat, the company's officials said, adding this network is being expanded to around 2,500 kms.
"The laying of three major gas pipelines will facilitate the development of networks leading to the evolution of the much-awaited National Gas Grid, which is critical for the country's energy security," Ray said.
The projects signify emergence of GSPL, a subsidiary of state oil & gas PSU GSPC, as a national player in gas transportation, he said.
The pipelines are estimated to be built at a initial capital expenditure of Rs 12,500 crore and will have capacity to carry around 95 MMCD (million metric cubic meters per day) of gas, Ray added.
