Reliance plans two new gas pipelines: Govt

Reliance Industries Ltd, plans to build two gas pipelines in southern India, the government said on Friday, that could help the energy explorer supply gas from its deep-sea fields to retail consumers.

The petrochemicals to oil refiner aims to produce 80 million cubic metres of gas a day (mmscmd) by mid-2008 from its two fields in the prolific Krishna Godavari basin, off the southern state of Andhra Pradesh.

The Oil Ministry said in an advertisement on Friday that Reliance Gas Transportation Infrastructure Ltd., a group firm, had submitted a proposal to lay a 670 km pipeline from Chennai to Tuticorin in Tamil Nadu.

It also wants to build another 660 km pipeline from Chennai to Mangalore in the neighbouring state of Karnataka, via Bangalore, the ministry said.

The advertisements in local newspapers did not disclose the cost of the two projects, and a Reliance spokesman could not give details immediately.

Reliance is already constructing a 1,400 km (870 mile) pipeline to transport natural gas from the deep-sea fields off India's east coast to the western regions of the country.

Earlier this month, P.M.S. Prasad, head of Reliance's oil and gas business, said the company planned to build city gas distribution networks in Tamil Nadu and Karnataka and also in Maharashtra and Gujarat in the west and West Bengal in the east.

The Oil Ministry said the two new projects were to be developed on a common carrier basis, making it mandatory for Reliance to offer 33 percent of each pipeline's total capacity to other firms.

"The interested party would have to enter into a take or pay contract or any other mutually agreeable contract with the owner for usage of the proposed pipeline," the ministry said.

India produces 95 mmscmd of gas and the government expects this to rise to more than 190 mmscmd by 2009 after a series of gas finds off the east coast, including by Reliance, come on stream.

GAIL to invest $4.1 bn in pipelines

Gas transporter GAIL (India) Ltd plans to invest Rs 180 billion ($4.1 billion) over the next five years in new pipeline projects across India, Chairman U D Choubey said on Friday.

The investment would boost revenues to Rs 58 billion by 2011/12 from 20 billion in the current year, he said.

The state-run company will build new pipelines totalling 5,000 km (3,100 miles) to enhance GAIL's gas transportation capacity to 280 million standard cubic metres per day (mmscmd) from the current 145 mmscmd, he said.

"With increase in usage of natural gas, we need to build an infrastructure to meet the demand," he said at a news conference.

India produces 95 mmscmd of gas and the government expects this to rise to more than 190 mmscmd by 2009.

Choubey said the company would go to the market to fund the expansion. "Details are being worked out," he said. It was not immediately clear whether it would be equity, debt or a combination of both.

GAIL, India's largest gas distribution firm, currently has a 6,000 km pipeline network that transports up to 80 mmscmd of gas to power plants and industries.

Shares in GAIL were up 2.2 per cent at Rs 269.70 in a firm Mumbai market.

RIL has $12 bn for gas find, transport

$5.2bn will be spent on gas production, while a larger chunk of $7bn on building gas pipes.

Reliance Industries is lining up investments of over $12 billion for production of gas from its fields in the Krishna-Godavari basin and its transport to consumers across the country.

While $5.2 billion will be spent on bringing the gas to production, a larger chunk of $7 billion will be invested in building gas pipes to transport it to consuming locations.

Production of gas from the K-G basin will begin by June 2008, the company’s president (oil and gas), PMS Prasad, told reporters.

There are three key pipelines that are being planned by the Mukesh Ambani-controlled company from Kakinada in Andhra Pradesh — a 1,386-km pipeline to Bharuch in Gujarat at an investment of $4 billion, and two coastal pipelines to West Bengal and Chennai at an investment of $3-3.5 billion.

Read more at Business Standard

RIL signs $4.5 bn deal for gas fields

Reliance Industries Ltd has signed contracts worth $4.5 billion to develop its gas fields off India’s southeast coast. The spending will be part of $5.2 bn of investment the company plans for the area, RIL’s president for oil and gas PMS Prasad said here today. Gas production will start on schedule in 2008, he added. “Investment has already been committed to ensure that all suppliers meet their deadlines, which will enable us to start production,’’ Prasad said.

Commercially viable deposits in the fields may help Reliance meet India’s growing requirements for gas for power plants and fertiliser companies. India, Asia’s third-biggest oil market, is promoting exploration to reduce dependence on imports as prices rise to records and output declines from ageing fields. India’s current gas supplies of 85 million cubic meters a day, including imported liquefied natural gas, falls short of the potential demand of 170mn cubic meters, according to estimates by the Oil ministry. Gas consumption may rise to 400 million cubic meters a day by 2025 if the economy grows at the projected rate of 7-8 % a year.

Read more at Financial Express