INDIA’S state-owned natural gas pipeline major, Gas Authority of India Ltd (GAIL) has offered to build a $2.2-billion pipeline grid for transportation and marketing of Reliance Industries Ltd’s 40-50Mcm per day gas discovery in the Krishna Godavari (KG) basin.
“We are talking to Reliance Industries for marketing and transportation of their latest find in KG Basin,” GAIL’s chairman and managing director said.
One element of the proposed pipeline grid will will cover a distance of 1,300km linking Kakinada in Andhra Pradesh state to Goa, and one will link Jamnagar, Bhopal, and Cuttack, a distance of 2,500km. According to the GAIL officials, the company has also proposed building a 200-km offshore pipeline to link the gas well-head to the landfall point in Kakinada. The reserves of Reliance's latest discovery in the KG basin are
estimated at 7Tcf. GAIL is also reported to be in dialogue with Cairn Energy of the UK and Niko Resources, who too have struck gas in KG Basin and Surat blocks, respectively.