GAIL attacks H-Energy pipeline to Bangladesh

Vol 20, PW 14 (06 Apr 17) Midstream & Downstream

H-Energy seems unable to propose any pipeline project without somebody or the other kicking up a fuss.

You'd think there is little reason to object to H-Energy's proposed 275-km dedicated gas pipeline from Kanai Chatta to Shrirampur in West Bengal under plans to transport R-LNG to a proposed power station in Bangladesh. But GAIL told the PNGRB in March that its own upcoming 2539-km gas pipeline from Jagdishpur in Uttar Pradesh to Dhamra in Orissa can connect Kanai Chatta to Shrirampur through two spur lines totaling 110-km length instead of H-Energy's proposed pipeline.

Sources close to H-Energy dismiss GAIL's objections as the uncalled for comments of a competitor for its Bangladesh gas business. But GAIL argues H-Energy's application to the PNGRB is "premature" as there's no clarity on the proposed H-Energy FSRU off Digha in West Bengal (the LNG source) or on the 800-MW power station at Khulna in Bangladesh (the consumer).

GAIL complains H-Energy has provided no information about financial closure and award of construction contracts, or its LNG sourcing plans, and that no GSPA is in place with Khulna power station despite talks since October 2015. H-Energy argues it is spending its own money so it's nobody else's business.

"PNGRB wanted comments only on whether this should be a common carrier or a dedicated pipeline," we hear. "Not whether this pipeline is justified!"

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