Reliance asks GSPL to lay gas pipeline to Jamnagar

Vol 9, PW 4 (01 Jun 05) Midstream & Downstream

Gujarat State Petronet is in demand these days.

Last month, Reliance asked it to extend proposed GSPL Ahmedabad to Rajkot gas pipeline to Reliances 630,000 b/d refinery complex in Jamnagar. Gujarat Petronet is about to begin the second phase of its 2200-km gas pipeline gird and will shortly award a contract for the 300-km Ahmedabad to Rakjot section.

However, we learn it is not too keen on the Reliance proposal. We found their proposal very shallow, a source tells PETROWATCH.

Connecting Jamnagar from Rajkot will disturb our schedule. We plan to connect Anand to Pipavav first in south-west Gujarat.

Jamnagar is 100-km from Rajkot and GSPL would ideally like to connect it only when the Anand to Pipavav line is completed. Reliance is telling Gujarat Petronet it needs a minimum 10m cm/d through the pipeline to fire the Jamnagar refinerys 235-MW captive power plant and other installations.

We find this figure of 10m cm/d very intriguing, says a source. You dont need that much gas even if you ramp up your refinery capacity to 50m t/y.

Frankly, we are not impressed by how Reliance did its homework. Sources at GSPL suggest that the meeting may have been a Reliance ruse to gauge GSPLs willingness to connect the Jamnagar refinery directly.

The only other major industry at the end of this 100 km stretch is the Gujarat State Fertiliser ammonia plant. With all the current uncertainties surrounding the Reliance Group, GSPL is afraid that Reliance could back track on the project if there is no assured contract.

What would GSPL do with the construction contracts which would have been issued to lay the pipeline At present GSPL has commissioned a 435-km first phase of the gas grid. Work will begin on the second phase in July or August this year.

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