GSPC might lay its own pipeline from KG

Vol 10, PW 8 (10 Aug 06) News in Brief

Gujarat State Petroleum is looking into the possibility of laying its own pipeline to transport gas from its Krishna Godavari discovery to Gujarat.

GSPC sources tell this report that earlier plans to join hands with Reliance appear to be floundering as it becomes increasingly apparent that high volumes from D-6 will leave little spare capacity for gas from the GSPC discovery block. Reliance has already begun imports of Chinese steel pipes for the 48-inch 1700-km pipeline from Kakinada to Gujarat but the likelihood of accommodating GSPC appears more remote than ever.

More, the recent announcement by Niko Resources tripling in-place reserve estimates at D-6 to 35-tcf makes it increasingly likely that Reliance will start pumping out 60m cm/d rising fast to 80m cm/d. Niko holds 10% of D-6.

GSPC estimates that first production from its discovery will be around 14m cm/d rising to 35m cm/d following the inclusion of a strategic partner and the drilling of more wells. (See: 9--Deepwater Frontier begins development drilling at D-6)