RGTIL seeks extension to complete 4 major gas pipelines

Reliance Gas Transportation Infrastructure Limited (RGTIL) has urged the Petroleum and Natural Gas Ministry to impress upon the Petroleum and Natural Gas Regulatory Board (PNGRB) not to cancel its authorisation for four major gas pipelines and instead give an extension in order to complete the projects.

Replying to the show cause notice issued by the Petroleum Ministry, Relogistics Infrastructure Ltd (Relog), a subsidiary RGTIL, has sought extension for completing the Kakinada-Basudebpur-Howrah; Kakinada-Chennai; Chennai-Bangalore-Mangalore; and Chennai-Tuticorin pipelines capable of carrying around 80 million metric standard cubic metres per day (mmscmd) of gas. PNRGB had written to the Petroleum Ministry recommending cancellation of the authorisation over delays in implementing the pipelines last month.

In its submission, Relog has pleaded that it had completed the work on right of use (RoU) acquisition. It said the recent developments on gas availability on the East Coast by way of proposed RLNG terminals and possibility to hook up GAIL (India’s) Kochi-Bangalore pipeline with Relog’s Chennai-Tuticorin pipeline in place, it was sure that implementation and commissioning of pipelines could be completed within 36 months of identification of definitive gas source on the East Coast.

It has stated, in its reply to the Ministry, that utilisation plan for these pipelines were submitted based on 80 mmscmd of gas from the KG-D6. However, the government, under its gas utlisation policy, has already allocated the entire 80 mmscmd of KG-D6 gas production to the existing customers and connected networks of GAIL/GSPL leaving no gas for the above mentioned pipelines.

Relog has also informed the Ministry of its readiness to submit performance bank guarantee (PBG) for the authorised pipelines on receipt of specific directions from the PNGRB. “Relog has made ample progress despite adverse conditions and since the delay is attributable only to reasons completely beyond its control and mainly non-visibility of source of gas transportation, it is submitted that any steps for termination of the authorisation of the four pipelines, if initiated by the Petroleum Ministry, would be unjust, untenable and arbitrary.”

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Printable version | May 8, 2021 10:02:06 AM |

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