Gujarat Gas in pipeline row with GAIL

Vol 9, PW 2 (04 May 05) News in Brief

British Gas subsidiary Gujarat Gas has run into difficulties with GAIL, which is refusing to give way to a 20-km gas transportation pipeline Gujarat Gas is laying between the twin towns of Kim and Karanj near Surat.

If not resolved the issue may, once again, fuel speculation about a GAIL agenda to take over successful city gas distribution projects in Gujarat. It isnt a complex problem at all, a company source tells PETROWATCH.

Our pipeline route is such that we may have to cut through the HBJ (pipeline). But instead of dealing with the matter in a commercial manner GAIL threw us a volley of questions asking under what authority we are laying the pipeline and then they cancelled the permission to pass through the HBJ.

GAIL argues that Gujarat Gas should seek central government permission before laying the pipeline. Gujarat Gas says it has already been granted permission by the state government.