GAIL has requested the petroleum ministry to allow GAIL to lay the spur line from its Kochi-Koottanad-Mangalore-Bangalore pipeline (KKMBPL) to Madras Fertilizer’s unit at Manali in Tamil Nadu. In a letter to the ministry, GAIL informed that KKMBPL is under implementation and shall facilitate RLNG supply from Petronet LNG’s Kochi terminal to various customers in the States of Kerala, Tamil Nadu and Karnataka.

GAIL has proposed to lay a spur line from the nearest tap-off point on KKMBPL to MFL’s unit at Manali. The approximate length of this pipeline would be around 270-300 km with an estimated expenditure of around Rs. 890 crore.

GAIL mentioned in the letter that with the development of gas pipeline infrastructure, development of the industries and gas markets also take place which shall bring socio-economic changes in the region. Substantiating this, GAIL stated that the Hazira-Bijaipur-Jagdishpur Pipeline, commissioned by GAIL in 1987 with only one consumer at Vijaipur, is now the lifeline of natural gas supply to various fertilizer units, power plants, industrial hubs and city gas projects that has developed across the length of the pipeline over the years. From Vijaipur a spur line was laid to Anta and Gadepan to meet the gas demand of NTPC and CFCL and subsequently till Kota to meet the gas demand of Shriam Fertilizers. The HBJ pipeline was extended to Delhi, Saibabad, and Gurgaon to meet the gas demand of the various industries in these areas along with and IGL’s city gas demand.

It also stated that the KG basin network was constructed in 1990s and the gas was transported to power, fertiliser, ceramic, city gas and other industries. However, access to KG D6 gas was provided and approximately 9 MMSCMD of gas started flowing and gas utilisation was possible due to presence of KG basin pipeline infrastructure.

GAIL further informed the ministry that the expenditure of around Rs. 890 crore for the spur line could be accommodated within trunk pipeline tariff of KKMBPL and shall not require additional tariff for the spur line. In addition, the spur line connectivity shall enable MFL for early use of RLNG which shall reduce subsidy outgo by approximately Rs. 900 crore per annum on account of changeover from naphtha to RLNG. It will also help capacity utilization of Petronet LNG’s Kochi Terminal as Madras Fertilizer will be one of the anchor load customer. In view of this, GAIL requested the ministry to consider the proposal at the earliest.

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