Another twist in GSPC-Niko pipeline fight

Vol 19, PW 1 (10 Sep 15) News in Brief

After 10 years of tedious court battles, Niko Resources has finally won the right to be seen as a stakeholder in a 14-km pipeline that it laid with partner GSPC to evacuate gas from its 50-sq km Hazira field.

The PNGRB on August 13 issued a 12-page order ruling that Niko is a stakeholder in the 36-inch diameter Hazira to Mora pipeline and that Niko has the right of being heard while determining the pipeline tariff. Niko approached the PNGRB after GSPL received the pipeline authorisation in March 2013.

Trouble began in 1999 when the DGH ruled out cost recovery, forcing GSPC to transfer the partly-constructed pipeline to sister company GSPL against Niko’s wishes. The pipeline was commissioned in 2000.

Niko began battling GSPC and GSPL in the PNGRB, APTEL, high courts and Supreme Court after they began using the pipeline to evacuate gas from the Hazira LNG terminal in 2004-05. A Niko appeal seeking cost recovery, filed before a Delhi High Court division bench in 2012, awaits judgement.

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