Reliance East West pipeline may be ready by March 2008
It is reported that Reliance Gas Transportation Infrastructure Limited is expecting to complete the implementation of 1,440 kilometers long pipeline project from Kakinada to Ahmedabad by March 2008. The pipeline will transport gas from Reliance Industries Limited’s east coast fields to Western India.
According to a source, Reliance Gas plans to put in place the East West pipeline for carrying gas from the D6 block of the Krishna Godavari Basin 3 months ahead of the scheduled production from the block. It is targeting the June or July 2008 deadline for gas production from the block. As per report, work is in progress at different locations and the company expects to meet the deadline.
RGTIL plans to connect the pipeline to GAIL India Limited's network near Uran. It would be a 2 way pipeline, with capacity to transport 120 million standard cubic metres per day of gas.
An empowered group of ministers examining Reliance's gas pricing formula recently gave its nod with minor modifications. According to the modifications proposed, the gas price at the delivery point, Kakinada, will be USD 4.20 per million British thermal unit excluding the marketing margins, transportation tariff and taxes. Meanwhile, Reliance India Limited has also proposed a new tariff plan for the transportation of gas from its KG find. As per RIL’s proposal, consumers close to KG basin will pay transportation charges of USD 0.17 per million British thermal unit, while those in other parts of the state will pay USD 0.45 per million British thermal unit and consumers in the rest of the country would pay USD 0.93 per million British thermal unit.
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