Expression of interest submitted to PNGRB for laying
line between Chennai & Mannavaram via Nellore
The three mini trunk lines will be part of a regional
grid covering all districts
They will cater to gas requirement in domestic,
industrial, transport & energy sectors
The Andhra Pradesh Gas Infrastructure Corporation (APGIC)
has submitted an expression of interest for laying a mini trunk line between
Chennai and Mannavaram via Nellore.
The State-owned gas exploration company, which
successfully bid for four oil blocks along with ONGC in the Krishna Godavari
basin last year, is now keen to play a role in marketing through the City Gas
In line with this strategy, the corporation has sent
proposals to the Petroleum & Natural Gas Regulatory Board to lay three mini
trunk lines. While it submitted a proposal for Kakinada-Srikakulam pipeline
over a month ago, the second one was despatched on November 16 and is readying
another one for the Bangalore-Anantapur pipeline.
Once the PNGRB notifies these proposals, bids will be
invited from interested players besides APGIC, said Investment and
Infrastructure Principal Secretary Ajay Mishra.
The three mini trunk lines will be part of a regional grid
covering all districts to cater to the gas requirement in the domestic,
industrial, transport, energy sectors, said APIIC Managing Director B. R. Meena.
Meanwhile, the government has given in-principle approval
for the APGIC to float two companies – the AP Gas Distribution Company for
creation of gas distribution and laying of pipelines. The second one, AP Gas
Trading Company is for sourcing gas from domestic and overseas companies and
supplying it to the regional grid.
The two companies would be formed as joint ventures with
GAIL and HPCL and the details about shareholding pattern were being worked out.
After the proposal is approved in the APGIL Board meeting, an MoU with the
public sector companies would be signed by December-end.
Reliance Industries Ltd., (RIL) which has the longest main
trunk from Kakinada to Jamnagar for transportation of KG basin gas, will take
up work on Kakinada-Kolkata and Kakinada-Chennai trunk lines. With the work yet
to commence on these two trunk lines, the State has proposed the mini trunk
lines to accelerate the City Gas Distribution network.
Meanwhile, the PNGRB initiated the bidding process to
develop city gas distribution network for Ranga Reddy, Medak, Nalgonda and
Khammam districts. For Hyderabad, Vijayawada, Kakinada and Rajahmundry work was
in progress and some parts of city were expected to get piped cooking gas
directly to homes in December.