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Home News Power Sector News GAIL to invest Rs 3200 crore for pipeline from Petronet, Kochi

GAIL to invest Rs 3200 crore for pipeline from Petronet, Kochi

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GAILGas Authority of India Ltd (GAIL) would invest Rs 3200 crore for laying the network of pipelines to transport and market the gas that would be made available from from Petronet LNG Ltd, kochi by 2011. Mr U D Choubey, chairman and managing director, GAIL said that the company would invest Rs 2500 crore for the 800 kms Kochi-Bangalore-Mangalore pipeline. Another Rs 700 crore would be invested to lay the off-shore pipeline to Kayamkulam. The pipeline to NTPC Kayamkulam would be completed by 2011. The pipelines have to be designed after taking into account the future requirement also, he said.

Meanwhile, GAIL has identified the main customers for gas in Kerala. NTPC, FACT, Reliance-BSES etc would be the main customers, he said. GAIL would be supplying piped gas to the domestic users in Kochi.

Compressed natural gas for vehicles in the state would be another area that the company would be focusing on. Mr Choubey said that the large number of boats plying in the backwaters of the state could use gas as fuel. This would be around 30 % cheaper for them as compared to diesel, he said. He, however, said that R & D work has to be done to convert the diesel using engines to gas based units.

He said that the land acquisition work for laying the pipeline would be completed within 6 months. The state Government would be providing the services of two officers from the revenue department for this.

Mr Choubey said that GAIL is planning another pipeline from Dhabol to Bangalore. He said that with the commissioning of the national gas grid there will be a lot of flexibility in the supply of gas.

Source - Economic Times

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