GSPL signs JVAs with IOCL, BPCL, HPCLto lay cross country pipeline

AHMEDABAD: State run Gujarat State Petronet Limited ( GSPL) and three PSU oil majors-Indian Oil Corp Ltd (IOCL), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL)- have executed joint venture agreements(JVA's) for developing three cross country natural gas transmission pipeline projects.

The signing of JVAs with-IOCL, BPCL and HPCL marks completion of equity tie-up for the three cross country pipeline projects-Mallavaram-Bhilwara (1585 kms), Mehsana-Bhatinda (1670) and Bhatinda-Jammu-Srinagar (740), a GSPL official said.

The pipelines would criss cross seven states such as Andhra Pradesh, Madhya Pradesh, Maharasthra, Haryana, Punjab, Rajasthan and Jammu and Kashmir.

GSPL, (with 52 per cent stake) led consortium with IOCL (26%), BPCL (11) and HPCL (11) as other partners were awarded authorisation later on July 7, 2011 by the sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB) for laying three cross country natural gas transmission pipelines.

The three combined pipeline projects of 3,995 kms are valued at nearly Rs 12,500 crore having a debt & equity ratio of 2:1.

GSPL has already announced the financial closure for two pipeline projects, Mehsana-Bhatinda and Bhatinda-Jammu-Srinagar.

The company is in process of tying up debt for the Mallavaram-Bhilwara project, he said.