India: $9-billion investment in gas pipelines to 2014

Wed, 4 February 2009

AN INVESTMENT of around $9 billion is expected to expand the gas-pipeline network in India in the next five years as the country gears up to promote use of gas, a recent study says. Currently, India has a gas pipeline network of over 10,000km, with Gas Authority of India Ltd (GAIL) owning 55%. The remainder is either jointly with GAIL, or privately owned.

GAIL is now implementing its National Grid project to develop about 8,000km of pipeline network across 15 states; Reliance Industries is also implementing a network project, which includes the development of the 1,440-km Kakinada-Ahmadabad East-West Pipeline, and a southern India pipeline network. Gujarat State Petronet is developing a 1,200-km gas grid, while Andhra Pradesh is enhancing its gas distribution network. The Ernst & Young study further shows that the share of oil and gas in the primary commercial energy mix is expected to grow from the existing 36% to 41% in the next 10 years.