State Firms Mull NE Indian Network

Five Indian state-owned energy companies will form a special purpose vehicle (SPV) to create a pipeline network in the north-eastern part of India, the oil minister Dharmendra Pradhan told an industry event in New Delhi January 11.  

"Gail, ONGC, Oil India, BPCL and IOC have approached the ministry with a plan to create a SPV for creation of a big pipeline network or grid in the North-East. The pipeline will connect all the important natural gas producing areas and help evacuate gas from places like Tripura, Manipur, Silchar Valley and Arunachal Pradesh," ET Energyworld quoted the minister as saying. 

"That is the plan. I cannot get into the financing of it at this stage. The first meeting (on the proposal) has taken place and a formal announcement on this issue will be made soon," Oil India chairman Utpal Bora, who was also present on the occasion, told ET EnergyWorld.

Gail is already building the 2,655-km Jagdishpur-Haldia and Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) project. The pipeline will pass through the eastern Indian states of Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha. Pradhan also said at the event that Gail will set up a coal to gas conversion plant in the eastern Indian state of Odisha.

“Our emphasis is towards utilising our coal reserves in more valuable and environment friendly manner by converting coal reserves towards synthetic gas production, making it cheaper than domestic gas,” he said.

The Indian government plans to lift the share of gas in India’s energy mix from 6-7% today to 15% in next five years. It is working on creating a robust gas infrastructure in the region that will help in boosting demand for gas especially focusing on city gas distribution networks.