GAIL's AP pipeline third phase to start next fiscal

Gas Authority of India Limited (GAIL) is planning to take up the third phase of natural gas distribution pipeline laying work in Konaseema area of East Godavari District during the next fiscal.

"Actually we are ready with pipelines and other materials to take up this work, but the gas supply has not increased as expected, and also some industries are not ready to take the gas supply. Owing to these reasons, we have not yet started the third phase work. However, the company is likely to start the works during the next fiscal," R C Arora, the GAIL deputy general manager, Rajahmundry, told Business Standard.

GAIL has proposed to lay 66.2-km long pipeline in the third phase with an investment of about Rs 80 crore. The pipeline laying works would take six months to complete, he said.

To evacuate the natural gas generated from Ravva field in the Krishna-Godavari Basin, GAIL had already laid 414.1 km long 4-18 inch pipelines in two phases with an investment of Rs.533.5 crores.

With these infrastructure support, the company is at present supplying 7.24 million metric standard cubic meters per day (MMSCMD) gas to 27 industrial consumers in this region, he revealed.

"If we complete the third phase work, we will be able to supply gas to eight new industrial consumers in Lingalapalli-Kaikalur and Mandapet sections," he disclosed.

During the last fiscal GAIL supplied on an average 7.45 MMSCMD of gas to industries, and during this fiscal the average supply is at 7.24 MMSCMD.

"During the last fiscal ONGC supplied on an average 5.41 MMSCMD gas, but now the gas supply has fallen to 5.14 MMSCMD and Cairn Energy is supplying 2.1 MMSCMD," Arora revealed.

In order to meet the industrial demand in this region GAIL will need at least 8-9 MMSCMD of natural gas.