Reliance East India gas pipeline to boost chems

23 February 2007 10:51  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Reliance Group has decided to lay 1,100 kilometres (km) of gas pipeline in the country’s eastern states, boosting the scope of existing and proposed fertilizer and petrochemical projects in the region, the Ministry of Petroleum & Natural Gas said.

 

The ministry said that the pipeline, which will be owned by Reliance group company Reliance Gas Transportation Infrastructure Limited, will be commissioned within 36 months.

 

It will originate from Reliance Industries Limited’s (RIL) upcoming onshore gas treatment plant near Kakinada in Andhra Pradesh State and from its proposed onshore gas treatment plant to be set up near Basudebpur in Orissa State.

 

RIL plans to produce 80m standard cubic metres per day (MMSCMD) from an offshore reserve named KG-D6 in the Kishna-Godavari basin. The company is also developing another offshore gas reserve off the Orissa coast.

 

The ministry on Friday invited expressions of interest from prospective gas suppliers to book capacity in the proposed common carrier gas pipeline.

 

The pipeline will pass through a 410 km stretch in Andhra Pradesh covering several locations including Visakhapatnam, which is a potential site listed under the ministry's Petroleum, Chemicals and Petrochemicals Investment Region policy to be announced shortly.  

 

Nagarjuna Fertilizers and Chemicals Limited is planning to expand the capacity of its ammonia-urea complex at Kakinada.

 

The pipeline will also cover 480 km of Orissa and 210 km of West Bengal (WB).

 

Mothballed plants of public enterprises Fertilizer Corporation of India (FCI) and Hindustan Fertilizer Corporation (HFC) are located in all three states. The pipeline will terminate at Howrah in Kolkatta in West Bengal.

 

An official from the Department of Fertilizers said that it had projected production of 5m tonnes/year of urea sometime during the eleventh five year plan, which ends on 31 March 2012, from seven closed plants belonging to these two companies in eastern India.

 

The department will facilitate their revival by linking the supply of natural gas or coalbed methane with the appropriate project finance.


By: Naresh Minocha
+65 6780 4359



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