“The proposed Vijayawada-Nellore natural gas pipeline, part of Andhra Pradesh’s gas grid including the city gas distribution network for the proposed capital, has hit a roadblock as the Indian Oil Corporation and Gujarat State Petronet Limited have filed objections with the Petroleum and Natural Gas Regulatory Board of Centre stating that the pipeline should start at Kakinada instead of Vijayawada for better connectivity.” reports Deccan Chronicle.
The pipeline originating at Vijayawada will burden consumers as tariff will have to be paid to private-owned gas pipelines that bring gas from Kakinada to Vijayawada.
The AP Gas Distribution Corporation had recently filed an expression of interest for the 355-km long natural gas pipeline from Vijayawada to Nellore to complete the AP gas grid, in order to supply gas to power projects.
The pipeline starts at Boddanapalle in Agiripalli of Krishna district and traverses through Guntur and Prakasam districts to terminate at Nellore. It is estimated that 2.67 Million Metric Standard Cubic Meter Per Day of gas will be transported.
GSPL general manager, Ravindra Agarwal, said, “The proposed arrangement does not ensure optimal utilisation of the Vijayawada-Nellore pipeline as it is not connected with all sources of natural gas in the vicinity.”
In the objection filed with PNGRB, he said that GSPC and Reliance Industries have onshore gas terminals located at Mallavaram and Gadimoga, respectively, for their offshore blocks at KG Basin, which are in close proximity of the proposed pipeline. “They are 200 km from the proposed origin point of the Vijayawada-Nellore pipeline,” Mr Ravindra said.
APGDC is proposing that natural gas from Kakinada LNG terminal be transported through the RIL owned East West Gas Pipeline up to Boddanapalle in Krishna district.
“The proposed pipelines would always be dependent on the EWPL pipeline.
To create a level playing field, the proposed pipeline should ideally originate from Kakinada where all existing and proposed gas sources are located,” stated Mr Ravindra. IOCL has also agreed stating that the pipeline from Kakinada would benefit the customers as the transportation charges of EWPL need not be paid.