Gas pipelines investment to touch Rs45,500 crore by 2012: study

21 October 2008

Total investment in the development and laying of gas pipeline network in the country is expected to touch Rs45,500 crore over the next five years in view of the expansion of the petroleum sector, according to a joint study by the Associated Chambers of Commerce and Industry of India (Assocham) and Ernst & Young.

In a paper 'Indian Oil & Gas Sector: Rising Business Opportunities', Assocham and E&Y pointed out that currently India has a gas pipeline network of more than 10,000 km.

GAIL India has a 55 per cent in the pipeline network while the remaining 45 per cent is in the joint sector, including private players particularly in the downstream sector.

Significant expansion of gas pipeline network is expected over the next few years as India gears up to create a cross country integrated pipeline network for promoting gas utilisation,  Assocham president Sajjan Jindal said while releasing the paper.

GAIL is already implementing the National Grid Project under which it plans to develop about 8,000 km of pipeline network across 15 Indian states.

Reliance Industries Ltd is also implementing its own pipeline network project which includes the development of 1,440 km Kakinada-Ahmedabad East –West pipeline and a southern India pipeline network.