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GAIL plans major forays in Orissa – Projects worth Rs. 15,000 crore in the offing

Petrochemical industry | 20 Dec 2005 IST | Polymerupdate.com
New Delhi, December 17, 2005. GAIL (India) Limited has plans to venture in major business forays in Orissa, which would involve a total investment of Rs. 15,000 crores. During a meeting with Sri Naveen Patnaik, Hon’ble Chief Minister of Orissa in Bhubaneswar yesterday, Shri Proshanto Banerjee, Chairman and Managing Director of GAIL (India) Limited discussed the areas of co-operation between GAIL and the State Government to participate in major business ventures in the state. Shri Sunil Pani, Chief Secretary, Orissa and other senior officials of GAIL and the State Government were present during the meeting.

Taking the positive discussions forward, officials from GAIL and the State Government will soon finalise a comprehensive “Energy Cooperation Agreement”, which would pave the way for GAIL’s major investments in Orissa.

GAIL, a Gas Major, is actively pursuing Surface Coal Gasification (SCG) opportunities in India. Shell would be the Technology provider and M/s UDHE is the DFR consultants for GAIL’s SCG project. Talcher has been identified as a suitable location in Orissa and the project implementation would involve an estimated investment of about Rs. 2,000 crores. The project would convert 4,400 tonnes per day of coal into valuable syn gas, which can feed a 4500 TPD urea plant. Alternatively, the Syn Gas can also be used for Power generation.

The State Government has expressed keen interest to involve GAIL in a grass-roots power plant in the state involving investment to the tune 4,000 crore and GAIL has stated that it would be interested to be a partner as a fuel supplier.

GAIL has carried out detailed market studies for natural gas in Orissa and has completed a DFR for a high pressure 1,140 kms trunk pipeline between Kakinada and Haldia, which would cover Balasore, Bhadark, J.K. Road, Cuttack, Khurda, Janzam (Behrampor) in Orissa. The pipeline is planned to be implemented in synchronization with gas supplies and would involve investment to the tune of Rs. 4,000 crore. This pipeline would feed spur pipelines to various mega Steel Industries, Fertiliser Plants, Small and Medium scale industries in the state. In addition, the gas pipeline would pave the way for city gas distribution projects in the state of Orissa to bring Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) to cities and towns in the state. The State Government has shown preference for the cities of Cuttack and Bhubaneswar.

Shri Banerjee informed that GAIL is a partner and a preferred buyer of gas from the A-1 block in Myanmar, which has announced a commercial discovery of 4 TCF last year. Shri Banerjee also mentioned that a feasibility study is undertaken by GAIL for transporting the A-1 gas by special Compressed Natural Gas (CNG) ships to a suitable port in the east coast. The State Government has expressed its preference for reserving a dedicated bund in the upcoming port at Dhamra in the northern part of Orissa for this purpose as it would improve the economics by avoiding expensive mooring systems and also provide the advantage of import point very close to the shore.

During the meeting, another proposal to set up a mega petrochemicals complex, involving an investment of Rs. 5,000 crore, was also discussed and the names of a few major multinational players were also discussed in this regard.

Shri Banerjee informed that while GAIL will implement the gas pipeline project on its own, other projects will be implemented in partnership with other companies and the State Government. The Hon’ble Chief Minister has expressed that a multi-disciplinary task force will be set up by the State Government to facilitate implementation of each one of these projects on a priority basis.
Note: This story has not been edited by The Polymerupdate Editorial team and is auto-generated from a syndicated feed.

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