AIL (India) commenced delivery of gas through its 1,000 km-long Dabhol-Bangalore pipeline.
GAIL also signed a gas transmission agreement with Karnataka Power Corporation Ltd. (KPCL) for the supply of 2.1 million metric standard cubic metres per day (mmscmd) of natural gas for its 700 MW power plant at Bidadi in 30 months. The project, for which KPCL invited tenders for engineering, procurement and construction (EPC) in October last, is to be ready by 2015.
The pipeline, built at a cost of Rs.4,500 crore, has a total capacity of 16 mmscmd. The pipeline traversed through about 700 km across Karnataka. It would facilitate the use of gas as a source of energy or feedstock for industrial uses. GAIL was also investing petrochemical plants at Dahej in Gujarat. GAIL urged KPCL to convert its 125 MW diesel-based power plant at Yelahanka to a gas-based system. “The increase in efficiency would result in savings of Rs.700-800 crore. The the Kochi-Mangalore and Mangalore-Bangalore pipelines would be ready soon. Company sources said supply of gas to domestic users would have to await clearances from the Petroleum and Natural Gas Regulatory Board.