GAIL India has embarked on a major pipeline network expansion plan across the country during 2012-13 to reach out to the industrial and fertilizer unit consumers. It is also exploring the possibility of floating storage and re-gasification unit (FSRU) at Paradip (East Coast) to cater to the needs of its customers.

The company is exploring the possibility of three gas sources for the Jagdishpur-Haldia pipeline. The first is the CBM gas at Reliance Industries' Sahdol Block in Madhya Pradesh and second is Essar's Raniganj Block near Durgapur in West Bengal. As for the floating storage and re-gasification unit, GAIL India is of the view that its major customers will be fertilizer plants — FCI Sindri, FCI Gorakhpur, HFCL plants at Durgapur, Barauni and Duncan Fertilizers at Kanpur. FCI Sindri is in advance stage of negotiations with GAIL to complete gas supply arrangements.

“The approved schedule for this pipeline is 36 months from first 3(i) notification. However, efforts will be made to complete the pipeline in phases — Durgapur-Haldia section by December, 2014 and the balance section Durgapur-Phulpur in synchronisation with revival of fertilizer plants enroute the pipeline,” sources said. GAIL briefed a high-level meeting, held by the Additional Secretary in the Petroleum and Natural Gas Ministry recently, on the progress of “Trunk pipelines”.

The meeting was also infomed that the completion of the project activities was required to be synchronised with the start of gas supply by RIL through RGTIL at Haldia, the gas source. Action plan was also being worked out to execute this pipeline with alternative gas source in addition to supply through Kakinada Haldia pipeline of RIL. CBM blocks of Essar at Durgapur and RIL at Shadol. Further pipeline execution is being aligned with readiness of downstream consumers and tie-up of gas source.

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