War declared as GAIL fights GSPL for SGL gas

Vol 19, PW 9 (14 Jan 16) People & Policy
     

GAIL and GSPL are battling over who should get gas from London-listed Focus Energy’s SGL field located at Langtala village near Jaisalmer in Rajasthan.

The PNGRB announced on December 21, 2015 that both companies have approached it over the proposed route of a gas transmission pipeline from the Focus field. “We’ll decide what is in the country’s best interests,” says a PNGRB source.

GSPL wants to lay a 24-inch diameter, 506.6-km pipeline from Langtala to its Mehsana terminal to carry 3-4m cm/d of gas. GAIL argues that instead the pipeline should run to Bhilwara in south Rajasthan to connect to its 3474-km cross-country HBJ pipeline.

“Langtala to Bhilwara works out to 510-km almost the same as the distance to Mehsana,” a senior GAIL source says. “Through the HBJ Focus gas can go to Uttar Pradesh, Madhya Pradesh, Delhi, Haryana, Punjab, Rajasthan and Gujarat.

” GSPL strongly disagrees and feels the pipeline should be designed to benefit the maximum number of customers. GAIL dismisses GSPL’s claims that there is no gas demand in Rajasthan.

“Our own study shows gas demand of 5.5-6.5m cm/d along our pipeline route in Rajasthan,” stresses GAIL. Two power stations need 1.35m cm/d, two Chambal Fertilisers factories need 3m cm/d and the DCM heavy chemicals and cement factory, which currently takes 150,000 cm/d R-LNG, can take Focus gas.

Gas retailers in Rajasthan also need 1-2m cm/d.