Focus loses battle for longer pipeline from SGL

Vol 23, PW 2 (14 Nov 19) Midstream & Downstream

IndianOil and Gujarat State Petronet (GSPL) have won the argument against Focus Energy and GAIL with their proposal for a shorter pipeline to transmit gas from the SGL field at Focus-operated RJ-ON/06 in Rajasthan at Langtala village.

On November 6, the PNGRB bowed to pressure and scrapped a Focus proposal to lay a 580-km pipeline from Langtala to Bhilwara and on the same day said it was replacing the project with a shorter 440-km pipeline from Langtala to Pali, passing through Jodhpur. Anyone interested can attend a pre-bid scheduled for December 6 (2019) and submit a bid deadline by the March 6 (2020) deadline.

With a proposed gas transmission capacity of 5m cm/d, the new pipeline is designed to transport 4m cm/d additional gas from RJ-ON/06. Focus and affiliate company Granada Services originally submitted an EoI to the PNGRB to lay a pipeline from Langtala to Bhilwara on March 14 (2018).

GAIL supported the proposal but GSPL India Gasnet (GIGL) consortium partners GSPL (52%) and IndianOil (26%) objected and asked the PNGRB to re-route the pipeline, saying the route to Bhilwara was too long and the connecting GAIL network could handle only 2m cm/d. "The new pipeline route is shorter by almost 140-km," says an IndianOil source.

"This will help reduce the capital cost needed to provide connectivity and this in turn will reduce the pipeline tariff and make the gas more affordable."