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OCT 29 2016

GAIL to invest 1,700 crore for upgrading pipeline network

  • Economic Times, ET Bureau / Hyderabad
  • Created: Sat 29th OCT 2016

GAIL (India) Ltd will be investing Rs 1,700 crore in Gujarat to upgrade and lay new pipelines for supplying natural gas to the industries. The investment will be done in a phased manner in different parts of the state over next three years. GAIL officials said that they have already begun work to replace old pipelines in the state.

"Most of the pipelines from which we supply gas in Gujarat are 25 to 50 years old. So we have begun process to change the old pipeline network that is around 490 kilometers. The project will cost us Rs 700 crore and it will take at least 18 months to complete it as we will replace the pipelines in phased manner," said Goutam Prasad, general manager (O&M), Gujarat. He said that despite having a good pipeline network GAIL isn't able to supply gas to full capacity as the pipelines are old.

GAIL is also planning to invest another Rs 1,000 crore for connecting its pipeline network in south Gujarat to northern parts of the state. "The industries in north Gujarat currently draw gas from ONGC but the PSU won't be able to supply gas in the same capacity for a long time. These industries will need gas and we are eyeing that market. As we don't have much network in north Gujarat, we plan to connect southern part of the state to north," Prasad added.

"Once our board approves the project, we aim to complete it within three years," he said.


Gujarat Gas Natural Gas ONGC United States India ongc

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