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JAN 12 2018

Oil PSUs to form SPV for mega natural gas pipeline network in North-East: Pradhan

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 12th JAN 2018

 

Oil minister Dharmendra Pradhan today announced five state-owned oil Public Sector Undertakings (PSUs) will form a Special Purpose Vehicle (SPV) to create mega natural gas pipeline network in the North-East part of the country. He was speaking at an event organized by industry body Federation of Indian Chambers of Commerce and Industry (FICCI) in Delhi.

"GAIL, ONGC, Oil India, BPCL and IOC have approached the ministry with a plan to create a SPV for creation of a big pipeline network or grid in the North-East. The pipeline will connect all important natural gas producing areas and help evacuate gas from places like Tripura, Manipur, Silchar Valley and Arunachal Pradesh," Pradhan said.

Oil India Chairman and Managing Director Utpal Bora, who was also present on the occasion, confirmed the plan of Oil PSUs to set-up the SPV. "That is a plan. I cannot get into the financing of it at this stage. The first meeting (on the proposal) has taken place and a formal announcement on this issue will be made soon," he told ETEnergyWorld.

Pradhan also said the government-owned gas utility GAIL (India) Ltd has approached downstream regulator Petroleum and Natural Gas Regulatory Board (PNGRB) to construct a natural gas pipeline to connect Dhamra in Odisha to Guwahat in Assam.

"GAIL has also approached PNGRB to create a spur pipeline up to Guwahati within the same budget. We have told Oil PSU's that there is an urgent need to create a big pipeline network in the North-East region. This network of pipeline will help accelerate employment and business in the region. The five companies have told us that they will approach PNGRB soon for the full detailed plan," the minister said.

The centre had recently decided to provide budgetary support of Rs 5,176 crore, 40 per cent of the estimated cost of Rs 12,940 crore, to GAIL for development of Jagdishpur-Haldia and Bokaro-Dhamra Gas Pipeline (JHBDPL) project. The project, named "Pradhan Mantri Urja Ganga of Eastern India" plans to bring natural gas to the eastern part of the country.

 

Tags

Delhi Odisha Arunachal Pradesh Assam Manipur Tripura Tripura State Electricity Corporation Ltd Arunachal Pradesh Grid Gas Natural Gas Oil ONGC FICCI Gas Pipeline United States Petroleum and Natural Gas Regulatory Board Petroleum Bharat Petroleum Corporation Limited Public sector units Haldia Budget India BPCL ongc

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