Reliance to build gas distribution network in B'lore
Sources said the senior Ambani jetted in for initial parleys with Karnataka chief minister, HD Kumaraswamy, to explore the possibility of city gas distribution (CGD) in Bangalore earlier this week.
By Boby Kurian, TNN |
BANGALORE: Reliance Industries (RIL) Chairman Mukesh Ambani is off the block unfurling the ambitious city gas distribution plans. Sources said the senior Ambani jetted in for initial parleys with Karnataka chief minister, HD Kumaraswamy, to explore the possibility of city gas distribution (CGD) in Bangalore earlier this week.
Sources said this was Mr Ambani’s first personal sitting with any state machinery for CGD from Krishna-Godavari basin even though RIL has been in touch with the West Bengal government for pumping gas into Kolkata households from its Mahanadi basin in Orissa in future. When contacted, RIL declined to comment.
Mr Ambani’s CGD proposal for Bangalore comes at a time when the Centre is finalising the policy for laying natural gas pipelines and setting up city gas distribution networks. It is expected that the Centre‘s policy will allow companies to have monopoly in retailing natural gas to households for a limited period based on investments and the market growth.
Sources said RIL’s interest in Bangalore should also be viewed in the context of the non-compete agreement between the two Ambani brothers, which has reserved CGD in Mumbai and Delhi to the younger Anil Ambani’s ADAG Group.
RIL and ADAG will compete for gas distribution in other markets, and Bangalore is expected to attract the attention of any private firm looking at developing CGD network. It is learnt that RIL proposes to bring gas into Bangalore from the Kakinada-Bharuch trunk pipeline, which passes through Karnataka’s northern districts.
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RIL expects gas to start flowing into the trunk line from KG Basin by mid ’08. This means that RIL could be in a position to bring gas into Bangalore as early as late ’08. Incidentally, two days ago, RIL had sought the exploration regulator’s permission to double the gas production target in KG Basin, which is currently pegged at 40 mmscmd.Sources said the falling global gas price and the prospects of larger gas supply will bolster RIL’s CGD blueprint, which is likely to cover virtually the entire available market in the country.
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