Reliance Energy approaches GAIL for gas transportation to Dadri Power Plant

New Delhi: Reliance Energy has approached GAIL (India) Limited for transporting gas to its 4000mw power plant coming up at Dadri near Delhi. It is understood that GAIL has offered cost effective solutions to transport gas from KG Basin to Dadri by using a part of the existing Hazira -Vijaipur-Jagdishpur (HVJ) network.

Reliance Energy Limited (REL) is looking for pipeline connectivity of gas for transporting about 20mmscmd of natural gas required for the plant by 2008. REL has plans to expand the capacity of the Dadri power plant to 8000mw MW, thereby increasing the demand of gas to 40mmscmd.

GAIL's proposed pipeline from Kakinada will connect to the HVJ pipeline system at Vijaipur in Madhya Pradesh for supply of KG basin gas to REL's power plant at Dadri and other gas markets in North India. Further, this linkage would offer another attractive option for linking the KG basin gas source to Western India gas market through a swapping arrangement using HVJ
pipeline.

Under such arrangement, gas from the western region LNG terminals at Dahej and Hazira and provided by ONGC, PMT, among others, can be utilised in the high demand markets of western region itself. The demand of the North Indian markets is presently met from the western region sources can be met by volumes available from KG basin.

GAIL says that the configuration of pipeline for this arrangement would significantly enhance supply security to the customers located along this pipeline, apart from the economy of
transportation charges due to high volumes.