Jhajjar-Hissar pipeline project may not materialize as there are no customers for the gas intended to be supplied through the proposed gas pipeline. GAIL’s 111 km, 20-inch diameter pipeline project was sanctioned in November 2007, with a scheduled completion date of October, 2010. However, till date, work on the project has not started.
The project was intended to supply gas to consumers in Jhajjar and Hissar regions. However, end users started developing cold feet as the cheap domestic gas was no longer available and GAIL could only provide RLNG at Henry Hub prices. Most end users do not find the cost economics of setting up units at RLNG prices. GAIL may think of starting the project only when it finds new customers for the gas.