Gas pipeline from Kochi to Mangaluru

#GS3 #INFRASTRUCTURE #ECONOMY

Prime Minister dedicated to the nation the Kochi-Mangaluru natural gas pipeline of the Gail Authority of India Limited (GAIL)

 

The terminal, since 2013

  • This pipeline will deliver liquefied natural gas, which is sourced from a terminal in Kochi built by Petronet LNG in 2013 at a cost of Rs 4,500; but, it could not be utilized until now.
  • The main objective of terminal’s is to supply natural gas for domestic and industrial use in Kerala and South India
  • It is South India’s first LNG-receiving, regasification and re-loading terminal, which has a capacity of five million metric tonnes per annum.

 

Gail India Limited (GAIL) 

  • Formerly known as Gas Authority of India Ltd. is an Indian public sector natural gas processing and distribution company headquartered at New Delhi, India. 
  • It is a state-owned enterprise of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas. 
  • It includes business segments like: natural gas, liquefied petroleum, liquid hydrocarbon, gas transmission, city gas distribution, exploration and production, petrochemical, GAILTEL and electricity generation. 
  • GAIL was conferred with the Maharatna status on 1 Feb 2013, by the Government of India. 
  • Only eight other Public Sector Enterprises enjoy this coveted status amongst all Central Public Sector Enterprises. 
  • The 450 km length pipeline, built by GAIL (India) Ltd, carries the capacity to transport 12 Million Metric Standard Cubic Metres of natural gas per day, from the Liquefied Natural Gas Regasification Terminal at Kochi to Mangaluru.
  • The pipeline passes through Ernakulum, Thrissur, Palakkad, Malappuram, Kozhikode, Kannur and Kasaragod districts and ends at Mangaluru in Dakshina Kannada district of Karnataka.
  • This pipeline will offer clean industrial fuel and provide an opportunity for multiple gas-based industries to emerge, creating direct and indirect job opportunities.
  • The project was launched in 2009 with an estimated cost of ₹2,915 crore and was expected to be completed in 2014. 
  • The first phase of the project was commissioned in August 2013, in Kochi city and Indian Oil -Adani Gas Ltd started industrial and domestic supplies in 2016.
  • The LNG terminal at Kochi, which was established at an investment of ₹4,700 crore and has a capacity of 5 million tonnes and the plant is expecting a 40% increase in demand with the opening of the Gail pipeline.

 

Phases and sections

  • The project, envisages pipelines from Kochi to Mangaluru and to Bengaluru. 
  • In the first phase, a 44-km line was laid in Kochi, linking the terminal with local industrial users, including Bharat Petroleum Corporation Limited. 
  • To take natural gas to domestic consumers, Indian Oil Corporation (IOC) entered into a pact with Adani Gas Ltd.
  • The second phase of the pipeline passes through seven districts of Kerala to carry natural gas from Kochi to Bengaluru via Palakkad, with another leg to Mangaluru. 
  • The Kochi-Mangaluru line (444 km) has been opened while the Bengaluru leg is nearing completion.
  • Already 2,750 domestic gas connections have been given in Kochi and work for supply of natural gas in other towns is going on. 
  • The pipeline supplies 3.8 million cubic metres of gas a day to industrial and residential customers in Kochi and is set to cross 4 million cubic metres in the whole city. 

 

Global Presence

  • As a strategy of going global and further expanding global footprint, GAIL has formed a wholly owned subsidiary company, GAIL Global (Singapore) Pte Ltd. in Singapore for pursuing overseas business opportunities including LNG & petrochemical trading. 
  • GAIL also established a wholly owned subsidiary, GAIL Global (USA) Inc. in Texas, USA. 
  • The US subsidiary has acquired 20% working interest in an unincorporated joint venture with Carrizo Oil & Gas Inc in the Eagle Ford shale acreage in the state of Texas. 
  • In addition to having two wholly owned subsidiaries in Singapore and the US; GAIL also has a representative office in Cairo, Egypt to pursue business opportunities in Africa and the Middle East.
  • GAIL is an equity partner in a retail gas company involved in city gas and CNG business in China – China Gas Holdings Limited (China Gas). 
  • Further, GAIL and China Gas have formed an equally owned joint venture company – GAIL China Gas Global Energy Holdings Limited for pursuing gas sector opportunities primarily in China.
  • GAIL is a part of the consortium in two offshore E&P blocks in Myanmar and also holds participating interests in the joint venture company – South East Asia Gas Pipeline Company Limited incorporated for the purpose of transportation of gas, which is to be produced from two blocks in Burma (Myanmar) to China.
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