GAIL Moves Ahead with Dabhol, Bangalore Pipeline

The Board of Directors of GAIL (India) Limited gave in-principle approval for laying of the Dabhol-Bangalore gas pipeline. At its Board and Strategy review meeting held in Bangalore, the Company management gave the go ahead for further time bound action and finalization of the project execution plans.

Depending on the source and customer tie up, the 30", 730 kilometer Dabhol-Bangalore gas pipeline shall be designed to carry 16 MMSCD of gas and will need an investment of approximately Rs. 2500 crore. The project shall be appraised/ updated in respect of investment, customers identification, routing of the pipeline and freezing the design parameters before final investment approval by the GAIL Board.

The route of the proposed pipeline is from R-LNG Terminal of Ratnagiri Gas and Power Private Limited (RGPPL) at Dabhol in Maharashtra up to Bangalore. The pipeline will pass through Ratnagiri and Kolhapur districts of Maharashtra; and Belgaum, Dharwad, Haveri, Davangere, Chitradurga, Tumkur and Bangalore districts of Karnataka. With this pipeline, natural gas from RGPPL's R-LNG Terminal can be supplied to industrial clusters in the state of Maharashtra and Karnataka.

The Dabhol - Bangalore pipeline is among the five new pipelines for which GAIL has already received authorization in the first quarter of 2007. The other pipelines for which approval has been granted are: (1) Dadri - Bawana - Nangal pipeline, (2) Chainsa - Gurgaon - Jhajjhar - Hissar pipeline, (3) Jagdishpur - Haldia pipeline, and (4) Kochi - Kanjirkkod - Bangalore / Mangalore pipeline.

In addition to these, GAIL will be laying three pipelines (within the existing ROU) to augment the capacities of Dahej - Vijaipur pipeline, Vijaipur - Dadri pipeline, Vijaipur - Auraiya - Jagdishpur pipeline. The carrying capacity of these three pipelines shall be 74 MMSCMD. The total length of the new pipelines will be around 5,500 kilometers and the estimated investment on these would be nearly Rs. 20,000 crore. When all these pipelines are commissioned by 2011-12, the total length of GAIL's pipelines would be more than 12,000 km and the capacity is expected to increase from 148 MMSCMD at present to around 300 MMSCMD.