Gail India is not too keen on persisting with Jagdishpur-Haldia gas pipeline project (JHPL) as it feels that there aren’t enough gas or customers to construct the pipeline at this juncture. However, finally political considerations may prevail over the commercial viability and Gail India may have to give in to the pressure from the ministry and go ahead with the project.
Gail India, on the other hand, is willing to go ahead with the project only after the fertilizer units located along the route book transportation capacity in the proposed pipeline. Fertiliser Corporation of India’s Gorakhpur, Sindri and Talchar units and Hindustan Fertiliser Corporation’s Haldia, Durgapur and Barauni lie along the route of the proposed pipeline.
JHPL was originally conceived considering the availability of the KG gas at Haldia through the Reliance Gas Transportation Infrastructure Limited’s Kakinada-Haldia pipeline. However, Gail India’s plans went haywire when the Petroleum Ministry rescinded the Kakinada-Haldia pipeline project due to non-compliance of the terms and conditions contained in the authorisation letter.
For Gail, confirmed off-take of gas by the fertiliser units is the main pre-requisite to start the project which in turn will depend upon the revival plan of these fertiliser units. According to Gail it will take minimum 36 months to lay the pipeline once the gas supply agreement is signed.