GAIL, Himachal Pradesh, sign natural gas pipeline co-operation agreement

05 November 2008

The Himachal Pradesh department of industries  has mooted the extension of GAIL's proposed Dadri-Bawana-Nangal natural gas pipeline upto Himachal Pradesh for the benefit of the state's industrial, transport and domestic sector consumers.

It has signed an agreement with Gail to jointly study the demand potential of natural gas and allied products in the state and work out the feasibility of extending the proposed Dadri-Bawana-Nangal natural gas pipeline upto Himachal Pradesh.

Under the co-operation agreement, GAIL will use its technical and commercial expertise to study the various options and collate the gas demand potential of the state of Himachal Pradesh. GAIL has already conducted a sample survey of some of industrial areas in Himachal Pradesh.

The department of industries will act as the nodal agency for facilitating information pertaining to fertilizer, power, industrial, domestic and transport sectors in the state, which could become consumers of gas and CNG as fuel or feedstock.

The department has taken it upon itself to coordinate the statutory approvals for developing the gas infrastructure in the state to fast-track the project.

After the completion of an assessment on the demand potential and alignment of the pipeline, GAIL will begin workin in two years on the 65-kilometre pipeline extension, which will require an investment of nearly Rs3,000 crore, for which GAIL says it has requsite fund through earlier mobilisation.