Gujarat Petronet moves ahead to expand state gas grid

Vol 9, PW 17 (01 Dec 05) Midstream & Downstream

Gujarat State Petronet plans to significantly extend its gas transmission network by 2009.

Gujarat Petronet chairman Balwant Singh tells this report the company already has 433-km of pipeline network in place and that Phase-I of the expansion programme will see an additional 742-km of pipeline and spur lines by 2007. Says Singh: In Phase-II we will add more pipelines and spur lines to take our total gas transmission length to 2,200-km by 2009.

EPC contracts have already been awarded to Larsen & Toubro for the Mori to Vapi Pipeline; Jay Somnath Iron Works for the Kalol to Himmatnagar pipeline; a consortium of Hindustan Construction Company and Nova Hut Ostrava of the Czech Republic for Kalol to Mehsana; and a consortium of L&T and STG-Essar for the Anand to Rajkot pipeline. Under consideration is CAPEX of Rs1450cr of which Rs185.9cr has already been spent.

Singh says the balance will come from the proceeds of Gujarat Petronets imminent launch on the countrys stock market and from debt. Gujarat Petronet wants to service new customers in Vapi, Saurashtra, Mehsana and Himmatnagar with the following pipeline configurations: Pipeline Length Diameter Completion Date Mora to Vapi 138-km 30-inch April 2006 Kalol to Himmatnagar 63-km 12-inch February 2006 Kalol to Mehsana 47-km 18-inch July 2006 Anand to Rajkot 294-km 18-inch to 24-inch July 2006 Also planned are spur lines totalling 200-km at various sites including Palej, Karjan, Morai, Morbi and Kadi by July 2007 at an estimated cost of Rs294cr.

Singh says Gujarat Petronet would invest Rs471.4cr to lay the Mori to Vapi pipeline; Rs82.8cr to lay the Kalol to Himmatnagar pipeline; Rs78.1cr for Kalol to Mehsana; and Rs523.6 cr for Anand to Rajkot.