GAIL constructing Rs 18,000-cr worth of pipelines

MUMBAI: State-run utility, GAIL Ltd, is constructing pipelines worth Rs 18,000-crore, which will augment its gas transportation network by 6,000-kilometres over the next three years.

"We currently have pipelines worth Rs 18,000-crore under construction. We will be adding 6,000-kilometres (of pipelines) over the next 3-4 years," GAIL Director Business Development, A K Purwaha, told reporters here today.

The company, at present, has a network of 7,000-kilometres.

The company has invested in five new pipelines and taken up upgradation of some existing networks, he said.

GAIL had earlier said it would lay a 600-km pipeline from Jhabua to Kailaras in Madhya Pradesh at an estimated cost of Rs 3,000-crore.

It also plans to commission a few pipelines in the current fiscal, Purwaha said, but did not give details.

GAIL, which has a capex plan of Rs 5,558-crore in FY 10, plans to more than double the amount of gas it transports by 2011-12.

"Our gas transportation capacity will more than double to over 300-million standard cubic metres (mmscmd) from 150- mmscmd currently," he said.

GAIL has signed a Gas Sales Contract with Hindustan Oil Exploration Company (HOEC) to source 51,000-million British thermal units (mmBtu) of gas from the latter's Cauvery basin field.