Mukesh Ambani-owned pipeline company Reliance Gas Transportation Infrastructure (RGTIL) is banking on rising exploration activity in Krishna Godavari basin, new sources of gas in the west coast, and new liquefied natural gas (LNG) terminals planned in eastern India to help it come out of losses.

Reliance Gas was set up to transport KG-D6 gas from Reliance Industries (RIL)’s gas blocks in east India to gasbased power, fertiliser and steel plants based in western India. However, due to continuous fall in gas production from RIL’s blocks, the pipeline company has been making losses since its inception.

The company expects its performance to improve in the medium term due to increased investments by various oil companies, which would use the pipeline to supply gas to customers. Besides, the LNG terminals to be set up by Shell and Gas Authority of India can use the 1,300-km pipeline set up by Reliance Gas. Apart from Reliance, ONGC and GSPC have invested in neighbouring gas blocks in the Krishna- Godavari basin and could use the pipeline for gas supply.

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